Motorola: new chairman on board for 52-week low - Top Stocks Blog - MSN Money
 
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Motorola: new chairman on board for 52-week low

Posted Apr 10 2008, 05:40 PM by Douglas McIntyre
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David Dorman, the former captain and chief of AT&T, has come to Motorola as Chairman. He was greeted with the handset, etc. company's stock hitting a 52-week low at $8.97 (less than half the 52-week high of $19.68). Dorman's first job will be to keep sharp objects away from big MOT shareholder Carl Icahn.

The market is already well aware of the problems at Motorola's handset business. Its global market share has dropped from 22% just over two years ago to about 13% now. Nokia and Samsung have better share and Sony Ericsson is gaining.

Last year, Motorola's handset division lost over $1 billion on revenue of $19 billion. Unit sales may drop below 30 million for Q1, much lower than sales were running last year. The loss may balloon, making the operation worth very, very little.

It has begun to dawn on investors that Motorola's home and mobility unit, which drove much of last year's operating income, could have a bad year in 2008. Its products, including set-top boxes, may see slowing sales in a down economy.

Motorola could end up hitting on no cylinders this year. No way to welcome the new chairman.

Comments

 

That's ashame, I have a Motorola cell phone and It is a good solid phone.

I have had several other brands over the years but it seems like everyone I have had has been made to crap out only after about a year of service. Maybe that's the problem. Motorola phones just last too long. So I wonder if I should buy up a bunch of stock in this? I believe Motorola makes one of the most dependable cell phones on the market today. At least mine has been great, no problems and I have had it for about a year and a half now. My old LG phone started having problems a year later. My Sony Erricson phone just completely stopped working and though my Samsung phone was okay, it also started having trouble about a year and a half later.  

This is remarkable,  Dorman and his inept underlings couldn't make a great decision

if ...Oh their lives didn't depend on making good decisions only on keeping your  job in the overall contest.  Trying to introduce new technology to the company runs in to roadblocks built by lawyers which do nothing to make the company stronger.  Is it any wonder technology continues to move offshore.  I sent information to Carlos Slim regarding the same technology and had reponse from

the CEO's office in four (4) days.

So now Mot brings in Dorman (and no doubt some of his team will follow)

It is no wonder Warren Holtsberg left when he did.

I LOVE MY RAZR PHONE --GO BACK TO BASICS---REBUILD WITH THE IDEA TO USE THE RAZR AS A PROTO TYPE. SLIM, SLEEK, SEXY  WHATEVER IT TAKES -DO'NT TRY TO RE-INVENT THE WHEEL. COLOR CHOICES FOR THE LOOK OF THE PHONE APPEALS TO SENSES--ESPECIALLY YOUNG FEMALE USERS.--FOCUS ON THE TEXT ASPECT TO MAKE YOUR PHONE MORE APPEALING --IF YOU SO CHOOSE TO RE-ENTER THE PHONE HARDWARE BUSINESS. MATT HERSHEY

I had purchased a new Motorola cell phone thru the carrier and it was not inexpensive.  The day after the warranty had expired the phone had a problem and it did not work.

I had promptly taken back to the carrier, because I needed a cell phone, to see if they could do anything to cover the phone under the warrenty.  They had contacted Motorola and Mototola had declined to cover the phone since it was the day after the warrenty had expired.  I had to purchase a new cell phone, NOT MOTOROLA!!.

I know it probably did not hurt Motorola by me not purchasing another Motorola cell phone, but maybe I'm not the only one.

If Dorman and his team stood around, watched, and collected their paychecks while AT&T went down to pennies on dollar, why would Motorola or anyone else have any faith Dorman and his team has any clue how to fix this?  Rather than collect their paychecks for a while.  What's needed here is not a proven failed bureaucrat or his high paid "team" of cronies; what's needed is a sharp marketing insight, a marketing hook that can quickly be built into new, attractive phone that will staunch the bleeding, or maybe even bring in new customers and new revenue.   One can only hope.  Don't hold your breath this Dorman or this team. The only thing their track record tells me is they know how to collect big paychecks and big bonuses, up front, until the ship goes down.  Motorola deserves better than that.

WRR

Please - Please - Please ........ Motorola was KING, let's never forget the STAR-TEC. Best Cell Phone ever. I had a Razor, the worst (great look, design, everything but the worst key pad ever). I met with corporate people at the competitors ... the New CEO should be thrilled everyone is bailing - fresh start. This is NOT ROCKET SCIENCE ... get some talent in their that is interetsed in talking to users, identifying trends, and less on plush offices, high pay (for no results), and big buyouts for nothing. I'll take the job for NO PAY, just commision on sales (oh yes, must be linked to profit). Get LEAN, GET IN TOUCH, and Watch a company that lead the industry lead it again.

well... really good post!

well... really good post!

Motorola in the past has always weathered the storm and when the future was the darkest has always found the silver Lining. The cell phones might be what they are currently known for but what is it in the future will they be known for?  This company once led the world in automotive Radios, Televisions and now cell phones. The future is around the corner and my bet is they will too.

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