The makers of the Razr and Krazr seem to be getting deepr and deepr (pun, obviously intended) into financial troubles as they announced another round of losses for the second quarter of this year. Blamed mainly on weak sales in Europe and Asia, Motorola is poised to lose to 2 to 4 cents per share on sales of $8.6 billion to $8.7 billion. This goes against earlier predictons of the fourth largest mobile phone manufacturer in the world that it would skim through earnings of $9.4 million dollars.
Numerous shareholders have asked for the ouster of Chief Executive Ed Zander due to his inability to rescue the company from this recent tailspin. Rumors have been going around in the stock market floor that Zander would resign soon due to pressure from his detractors. As a result, optimistic buyers boosted the stock price 3% at the end of the trading day.
Sony Ericsson definitely had something to do with Motorola’s decline. The company known for the now prevalent Walkman Phone has successfully penetrated the low-end and mid-range market that Motorola used to bank on. Due to the Sony Ericsson’s ability to put out new models every few months, they’ve been able to take advantage of the Asian consumers’ penchant for changing mobile phones more frequently than any other demographic.