Motorola's Slumping Handset Sales Put Pressure On CEO Zander - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
Software // Enterprise Applications

Motorola's Slumping Handset Sales Put Pressure On CEO Zander

Motorola said handset shipments in the most recent quarter are expected to slip to between 35 milion and 36 million -- a substantial drop from the nearly 52 million units shipped in the same quarter a year earlier.

Motorola's struggle to find a hot-selling cell phone has taken on desperate overtones after the company shocked investors with a report that cell phone sales will be down, and the mobile devices unit will report a loss for the full year.

The negative report increased the pressure on Motorola chairman and CEO Ed Zander, who has been waging a battle with financier Carl Icahn. The financier has been quiet on Motorola lately, but the negative news could reactivate his skirmishing with Zander.

Also Thursday, the company named Stu Reed president of the company's mobile devices business effective immediately. Reed had been executive VP of Motorola's integrated supply chain organization.

Stock analysts, the same group that forced out Christopher Galvin as CEO a few years ago to pave the way for Zander's takeover of the post, began circling Motorola's executive suite.

"While we fully expect Zander's departure this year, there is no visibility on when," said Charter Equity, according to media reports. "His strategy is clearly not working."

Like other mobile phone providers, Motorola has seen its new phones eclipsed by the hoopla surrounding Apple's iPhone. Zander got an early boost from the success of Motorola's Razr phones, but the company's handset sales have lagged in recent months.

Motorola said handset shipments in the most recent quarter are expected to slip to between 35 million and 36 million -- a substantial drop from the nearly 52 million units shipped in the same quarter a year earlier.

Sales for the quarter are expected to be between $8.6 billion and $8.7 billion, "essentially flat with first quarter 2007 sales of $9.4 billion," Motorola said.

"For the full year 2007, the company no longer expects the mobile device business to be profitable," the company said. "Second-quarter results for Connected Home Solutions and Networks & Enterprise businesses continue to meet the company's expectations."

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
Commentary
Learning: It's a Give and Take Thing
James M. Connolly, Editorial Director, InformationWeek and Network Computing,  1/24/2020
Slideshows
IT Careers: Top 10 US Cities for Tech Jobs
Cynthia Harvey, Freelance Journalist, InformationWeek,  1/14/2020
Commentary
Predictions for Cloud Computing in 2020
James Kobielus, Research Director, Futurum,  1/9/2020
White Papers
Register for InformationWeek Newsletters
Video
Current Issue
The Cloud Gets Ready for the 20's
This IT Trend Report explores how cloud computing is being shaped for the next phase in its maturation. It will help enterprise IT decision makers and business leaders understand some of the key trends reflected emerging cloud concepts and technologies, and in enterprise cloud usage patterns. Get it today!
Slideshows
Flash Poll