Motorola lowers its forecast for quarterly results

Motorola lowers its forecast for quarterly results

Looks like Motorola is finding it hard to continue reaping the benefits from the Razr range of mobile phone products.

The company has now lowered its forecast for quarterly results. Motorola is facing a shortfall at its mobile devices unit.

Market analysts believe that this shortfall is likely because of the price war going on between Nokia and Motorola. Both the companies are hugely targeting emerging markets including India with their low cost mobile phones and this result in lowered revenues.

Charter Equity Research analyst Ed Snyder had this to say: “This probably means they’ve been trying to fight Nokia on pricing. It probably means Nokia’s going to see a similar trend — high unit volumes and low phone pricing and margins.”

Motorola is now expecting fourth-quarter sales of $11.6 billion to $11.8 billion. Motorola Chief Executive Ed Zander said in a statement: “We are very disappointed with our fourth-quarter financial performance, but we remain committed to the strategic direction and long-term financial targets we discussed at our annual analysts meeting.”