Motorola’s mobile handset business continues to plummet, with the #2 mobile phone maker warning that its second quarter results to be posted next week will show around $8.6 billion to $8.7 billion in revenue—far below the previous guidance of $9.4 billion. This is likely to stir up shareholders again… “Motorola attributed the shortfall to lower-than-expected handset shipments in Europe and Asia…Device shipments for the second quarter will probably total 35 million to 36 million, the company said, slightly more than half of its fourth-quarter volume” reports RCR News. More significantly Motorola has said that its mobile devices business will not post a profit by the end of the year, as was previoulsy predicted. This decline in handset sales comes amidst a generally strong market, and its possible that third-place manufacturer Samsung may overtake Motorola—which was nigh on inconceivable a year ago. Stu Reed, current head of Motorola’s supply chain operations, will take over the companies mobile device business.
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