While the 'networks' recorded output NET 8Seven years after the arrival of George wIberdrola had everything to entice investorsIt is really a transaction transforms CarlsbergFriday despite the statements made by George wIt is likely that other ads are implementedFocus on cognac in Charente is not uselessPoint of gas gas competition the game remains sluggishIt is time to enter the era of pragmatismThe lowest rate in seventyfive years saidMotorola does not leave the head of the water. At sentencing for several months, the US telecom equipment manufacturer warned Tuesday night that its accounts would fall into the red in the first quarter. For the first time since 2003, the turnover will also be in decline, by 8 over a year. Expecting a still difficult second quarter, the group warned that its results for the full year would be "significantly lower" to its initial forecast. For investors, it is now clear that the relief of Motorola will be longer than expected. "When Nokia stumbled a few years ago, it took about six months to regain its market share with large discounts on the price, note the Office of studies Ovum." Motorola recovery could take even more time. "At the opening of the New York Stock Exchange, Motorola action yesterday closes more than 5.
The U.S. has justified its underperformance by poor activity of mobile telephony (cash for two thirds of its turnover) while other activities met their objectives. "The results of this division continue to be unacceptable", acknowledged Ed Zander, CEO of the second largest manufacturer of mobile. It will be lost in the first quarter, before a "gradual recovery" on the second part of the year. Between the third and the fourth quarters of 2006, his margin was already collapsed by 12 to 4.4...
Three causes for the defeat: sales below expectations, a strong price war in emerging countries and a portfolio too "limited" in the third-generation phones destined for Western markets. "The market share of Motorola is eroding faster than expected, said Citigroup." Competitors take advantage of his position of weakness to attack him on all sides: Nokia in emerging markets, Samsung in mature markets. "According to Credit Switzerland, the market share of the group could have dropped from 4.5 point to 17.8.
Priority to profitability
Its margins to evil, Motorola has decided no longer to make the race for market share and give priority to profitability. To do this, it will have to sell more expensive phones. He promised to expand its mobile features. Until recently, it had capitalized on the success of its RAZR mobile ultrafine design. But this model can cost in the $ 30 today, against nearly 500 dollars at its launch two years ago... And all the competitors now play the card of the finesse. "Motorola insisted strongly on the design but not enough about the technology, then both are essential to impose," said Carolina Milanesi, Gartner analyst.
The relief will also pass through a reduction in costs. Early January, he had already announced the removal of 3,500 jobs. Heads have also fallen branch. The pattern of mobile had left the ship in February. Today, it is the Financial Director, David Devonshire, who announced his retirement.
This troubled fall more than bad for the US telecom equipment manufacturer. The businessman Carl Icahn now holds approximately 2.5 of the capital of the OEM and openly challenged its strategy. In deciding to devote 7.5 billion here in July 2009 in share buyback, Motorola responds to the request of billionaire. But in part only.
