RAZR cuts are deep for Moto

Motorola needs to get someone to write a book about them, outlining their successes and their mistakes. And devote an entire chapter on why they shouldn’t rely on a single product too much. Remember the Startec? Well that phone sold like mad, and then suddenly it didn’t and Motorola stock swooned.

History is repeating itself with RAZR, which has been milked to death, and the sales have just nose-dived, which is why the company is reporting losses and is bracing for dismal times ahead.

Motorola is now lowering its sales from previously announced (January 2007) estimates of between $10.4 billion and $10.6 billion to the $9.2 billion to $9.3 billion range in the first quarter of 2007. Losses, oh yeah, they got those too. They say, they are shifting focus to beefing up margins, which despite everything that has transpired makes me believe that they will be a bidder for Palm.

“This is a fast business, very fast,” said Ed Zander, Motorola’s chief executive officer, told the Wall Street Journal. “And we just didn’t react fast enough.”

“Motorola is trying to move away from the price game for market share, but the product portfolio at the moment is lacking in the high-end and the low-end,” writes RBC Capital Markets analyst, Mark Sue. You can say that again Mark!