Motorola Mobile Division Slumps, Stock Gets a Beating

Motorola reported that sales of mobile phones dropped by 34% in the last (and best?) quarter. The company has not explained why the drop happened and we can only speculate that the drop occurred across the phone line-up. A few sites were commenting that the iPhone was eating Motorola’s lunch, but we don’t believe that they are even in the same market, although there is probably some overlap.

We think that the symptoms can be explained by what we call a “RAZR fatigue”, meaning that the pursuit of re-creating the RAZR’s success using the same ingredients just doesn’t work.

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