Saying Xoom tablet and Atrix smartphones sales aren't meeting the projections of Motorola Mobility (NYSE:MMI) Pacific Crest analyst James Faucette said the company will be under pressure if it doesn't “refresh its product portfolio for the second half of 2011.” Consequently he lowered his EPS and revenue estimates on the company for 2011 and 2012.
Faucette slahsed his 2011 revenue estimate from $13.7 billion to $12.25 billion, while cutting his EPS outlook from 96 cents a shaer to 64 cents a share. For 2012 the outlook is even worse, with revenue cut from $15.34 billion to $13.62 billion and EPS from $1.73 a share to $1.10 a share.
Faucette said, “Based on our checks, we believe overall sell-through trends for of the Xoom and Atrix have been disappointing. In particular, we believe Atrix’s lower-than-forecast volumes are a result of the $49 iPhone 3GS and the HTC Inspire, which kept Atrix sales well below forecast in spite of the marketing focus put on the Atrix by AT&T.”
Motorola Mobility was trading at $23.67, gaining $0.04, or 0.17 percent, as of 12:24 PM EDT. Faucette maintains a "Sector Perform" on the company.
Showing posts with label Xoom. Show all posts
Showing posts with label Xoom. Show all posts
Tuesday, April 5, 2011
Friday, March 18, 2011
Motorola Mobility (MMI) Soars on Release of Xoom
Shares of Motorola Mobility Holdings Inc. (NYSE:MMI) soared close to 7 percent in morning trading Friday as it announced they'll launch Wi-Fi-only version of its Xoom tablet March 27 in the U.S.
According to Motorola, the Xoom has a sharper screen than Apple's (NASDAQ:AAPL) iPad, and runs on Honeycomb, Google Inc.'s Android platform.
The 32-gigabyte version of the Xoom, according to Motorola, will sell for $599.
Motorola Mobility was trading at $26.25, gaining $1.23, or 4.92 percent, as of 11:54 AM EDT.
According to Motorola, the Xoom has a sharper screen than Apple's (NASDAQ:AAPL) iPad, and runs on Honeycomb, Google Inc.'s Android platform.
The 32-gigabyte version of the Xoom, according to Motorola, will sell for $599.
Motorola Mobility was trading at $26.25, gaining $1.23, or 4.92 percent, as of 11:54 AM EDT.
Tuesday, March 15, 2011
Shares of (MMI) Cut on Lower Xoom Sales
Shares of Motorola Mobility (NYSE:MMI) were getting hit today as Oppenheimer & Co. analyst Ittai Kidron cut his outlook on the stock after he downwardly adjusted his expectations for sales of "Xoom."
Kidron said, “We believe Motorola has missed an opportunity to make its mark in the market by initially targeting value vs. volume.”
He said he sees more modest sales of Xoom than he has originally expected, and thinks they missed a big opportunity by not offering a variety of tablets at different price points.
Consequently, he cut his 2011 EPS and revenue outlook for Motorola Mobility, as it looks like they won't get the market share gains he thought they would against Apple’s (NASDAQ:AAPL) iPad 2.
Kidron reiterates an "Outperform" rating on Motorola Mobility, which was trading at $23.35, down $1.34, or 5.43 percent, as of 2:40 PM EDT. He also lowered his price target on the company from $36 to $32.
Kidron said, “We believe Motorola has missed an opportunity to make its mark in the market by initially targeting value vs. volume.”
He said he sees more modest sales of Xoom than he has originally expected, and thinks they missed a big opportunity by not offering a variety of tablets at different price points.
Consequently, he cut his 2011 EPS and revenue outlook for Motorola Mobility, as it looks like they won't get the market share gains he thought they would against Apple’s (NASDAQ:AAPL) iPad 2.
Kidron reiterates an "Outperform" rating on Motorola Mobility, which was trading at $23.35, down $1.34, or 5.43 percent, as of 2:40 PM EDT. He also lowered his price target on the company from $36 to $32.
Friday, March 11, 2011
XOOM (MMI) Getting Flash (ADBE) Next Week - Is That Good?
Depending on your thoughts on Adobe's (NASDAQ:ADBE) Flash, news that Motorola Mobility's XOOM (MMI) will be getting the software next week for the device is either good or bad.
Adobe said, "We have been working very closely with Google to ensure tight integration between Flash Player 10.2 and new OS and browser capabilities in Android 3.0. The March 18th beta release of Flash Player 10.2 in conjunction with Google's first system update to Android 3.0 (version 3.0.1) currently underway for the MOTOROLA XOOM™ will deliver the first phase of our work together. This will be followed by subsequent updates, which will complete the optimizations and result in a production GA release of Flash Player 10.2 for Android 3.0."
To say that Mozilla's Jay Sullivan is not a fan of Flash is to make an understatement, as it's weighed heavily on the performance of Firefox.
He said when asked if the believes Flash is going away, "I think so in the long run. A lot of it has to do with HTML5. With Firefox 4, Internet Explorer 9, and Chrome, to the extent that we provide functionality in enough browsers, then the developers will switch over to HTML5, especially in mobile, where you can't have Flash popping up on every page just to do some little animation. The idea that you'd have to embed an entire instance of the Flash player just to play a 30 second audio clip? It's crazy."
Others think it's an important differentiator from Apple's (NASDAQ:AAPL) iPad.
Adobe was trading at $34.38, down $0.48, or 1.38 percent, as of 1:30 PM EST. Motorola Mobility was trading at $24.54, down $0.67, or 2.66 percent, as of 1:33 PM EST.
Adobe said, "We have been working very closely with Google to ensure tight integration between Flash Player 10.2 and new OS and browser capabilities in Android 3.0. The March 18th beta release of Flash Player 10.2 in conjunction with Google's first system update to Android 3.0 (version 3.0.1) currently underway for the MOTOROLA XOOM™ will deliver the first phase of our work together. This will be followed by subsequent updates, which will complete the optimizations and result in a production GA release of Flash Player 10.2 for Android 3.0."
To say that Mozilla's Jay Sullivan is not a fan of Flash is to make an understatement, as it's weighed heavily on the performance of Firefox.
He said when asked if the believes Flash is going away, "I think so in the long run. A lot of it has to do with HTML5. With Firefox 4, Internet Explorer 9, and Chrome, to the extent that we provide functionality in enough browsers, then the developers will switch over to HTML5, especially in mobile, where you can't have Flash popping up on every page just to do some little animation. The idea that you'd have to embed an entire instance of the Flash player just to play a 30 second audio clip? It's crazy."
Others think it's an important differentiator from Apple's (NASDAQ:AAPL) iPad.
Adobe was trading at $34.38, down $0.48, or 1.38 percent, as of 1:30 PM EST. Motorola Mobility was trading at $24.54, down $0.67, or 2.66 percent, as of 1:33 PM EST.
Wednesday, March 9, 2011
Google (GOOG), Motorola Mobility’s (MMI) “Xoom” Sales Remain a Mystery
Conflicting reports on the number of sales of Motorola Mobility’s (MMI) “Xoom” tablet, which includes Google’s (GOOG) new version of its “Android” operating system, dubbed “Honeycomb,” continue to emerge, and it evidently won't be until earnings are reported by Motorola before we get the actual numbers.
Some have said sales are weak and others, like Verizon (NYSE:VZ), have said Xoom is selling "extremely well."
However, Trip Chowdhry with Global Equities Research today insists there’s a problem, writing that Xoom sales are “very weak,” with the tablet suffering from “poor software quality” in Honeycomb, and poor battery life.
As Chowdhry sees it, without citing specific sources for his conclusions, “Google Honeycomb is suffering from frequent application freezes and crashes,” and “the battery life is very inconsistent – lasts sometimes for 2 hours, and sometimes for 6 hours. The battery standby life is mere 10 – 12 hours vs. 30 days on Apple iPad.”
Further, Chowdhry sees numerous user interface issues: The “auto-wrap” on text is “completely missing” when text is magnified on screen, “which just shows, Google is missing attention to simple details.” i
Overall, the Honeycomb UI “is extremely complicated and confusing,” he writes, and, “users are frustrated” because the UI “just does not come naturally – you really have to work on it,” according to users he’s heard from.
Chowdhry’s conclusion is that Google’s approach of, “‘By the Geeks, For the Geeks, Of the Geeks’ will struggle to get mass adoption – probably will be relegated to Tech Community only.”
Motorola Mobility was trading at $26.93, down $0.23, or 0.86 percent, as of 12:48 PM EST.
Source
Some have said sales are weak and others, like Verizon (NYSE:VZ), have said Xoom is selling "extremely well."
However, Trip Chowdhry with Global Equities Research today insists there’s a problem, writing that Xoom sales are “very weak,” with the tablet suffering from “poor software quality” in Honeycomb, and poor battery life.
As Chowdhry sees it, without citing specific sources for his conclusions, “Google Honeycomb is suffering from frequent application freezes and crashes,” and “the battery life is very inconsistent – lasts sometimes for 2 hours, and sometimes for 6 hours. The battery standby life is mere 10 – 12 hours vs. 30 days on Apple iPad.”
Further, Chowdhry sees numerous user interface issues: The “auto-wrap” on text is “completely missing” when text is magnified on screen, “which just shows, Google is missing attention to simple details.” i
Overall, the Honeycomb UI “is extremely complicated and confusing,” he writes, and, “users are frustrated” because the UI “just does not come naturally – you really have to work on it,” according to users he’s heard from.
Chowdhry’s conclusion is that Google’s approach of, “‘By the Geeks, For the Geeks, Of the Geeks’ will struggle to get mass adoption – probably will be relegated to Tech Community only.”
Motorola Mobility was trading at $26.93, down $0.23, or 0.86 percent, as of 12:48 PM EST.
Source
Friday, March 4, 2011
Motorola Mobility's (MMI) Tablet Prospects Fading
Shares of Motorola Mobility (NYSE:MMI) closed down Thursday, as Cowen & Co.’s analyst Matthew Hoffman lowered his rating on the company, saying the introduction of iPad 2 (AAPL), which was more competitive than he anticipated, along with the release being sooner than originally believed, had Hoffman saying he sees the short-term prospects of MMI fading at this time.
Hoffman also made a major adjustment in the number of Xoom units he expects Motorola Mobility to sell in 2011, cutting estimates from 3.2 million units to 2.2 million unites. In the second quarter alone he sees as many as 620,000 fewer units of Xoom being shipped.
“The equation shifts more toward Apple — for now,” concluded Hoffman.
Over the long term he sees the $11 a share in cash MMI has allowing them to generate a “defendable long-term share position in tablets overall, and Android tablets specifically.” In the short-term he doesn't see that happening.
Hoffman lowered his rating on MMI from "Outperform" to "Neutral." Motorola closed Thursday at $26.78, dropping $1.60, or 5.64 percent.
Hoffman also made a major adjustment in the number of Xoom units he expects Motorola Mobility to sell in 2011, cutting estimates from 3.2 million units to 2.2 million unites. In the second quarter alone he sees as many as 620,000 fewer units of Xoom being shipped.
“The equation shifts more toward Apple — for now,” concluded Hoffman.
Over the long term he sees the $11 a share in cash MMI has allowing them to generate a “defendable long-term share position in tablets overall, and Android tablets specifically.” In the short-term he doesn't see that happening.
Hoffman lowered his rating on MMI from "Outperform" to "Neutral." Motorola closed Thursday at $26.78, dropping $1.60, or 5.64 percent.
Thursday, March 3, 2011
Apple‘s (AAPL) iPad 2 Results in Motorola Mobility (MMI) Downgrade
The unveiling of Apple‘s (NASDAQ:AAPL) iPad 2 didn't take long to cause some ripples, as Motorola Mobility (NYSE:MMI) was quickly downgraded by C.L. King analyst Lawrence Harris.
Most of this centers on the weak performance of Motorola Mobility's Xoom tablet, which was released last week to lackluster sales, even though it was touted as a legitimate alternative to the iPad.
But the unusual commitment of Apple to offering the iPad at lower prices, along with its supply chain successfully churning out iPads to meet demand, has ended up pressuring MMI's shares and performance.
Harris noted that the iPad 2 comes close to meeting the abilities of Xoom. "The iPad 2’s features, which include a dual-core processor, front and back cameras and HDMI output, appear to match most of the high-end attributes of the Motorola XOOM,” he concluded.
MMI was closed Wednesday at $28.38, falling $1.12, or 3.80 percent. Harris lowered the company from a "Strong Buy" to a "Buy."
Most of this centers on the weak performance of Motorola Mobility's Xoom tablet, which was released last week to lackluster sales, even though it was touted as a legitimate alternative to the iPad.
But the unusual commitment of Apple to offering the iPad at lower prices, along with its supply chain successfully churning out iPads to meet demand, has ended up pressuring MMI's shares and performance.
Harris noted that the iPad 2 comes close to meeting the abilities of Xoom. "The iPad 2’s features, which include a dual-core processor, front and back cameras and HDMI output, appear to match most of the high-end attributes of the Motorola XOOM,” he concluded.
MMI was closed Wednesday at $28.38, falling $1.12, or 3.80 percent. Harris lowered the company from a "Strong Buy" to a "Buy."
Wednesday, March 2, 2011
Apple's (AAPL) iPad Dominance Not in Trouble Anytime Soon
While the drums are being pounded about the entry of challengers to Apple's (NASDAQ:AAPL) iPad, companies like Hewlett-Packard (NYSE:HPQ), Motorola Mobility (NYSE:MMI) and Research in Motion (NASDAQ:RIMM) can make all the noise they want, the battle, for now, was over before it started.
That's not to say there won't eventually be a serious competitor to the iPad. But even while most companies struggle to get a tablet to market, Apple is about to release their iPad 2.
Even the presumably higher-quality XOOM from Motorola Mobility has barely made a whimper of a noise against iPad.
Although the market share held by Apple's iPad will surely fall, as no product or company can maintain the type of market share enjoyed by Apple and iPad, the overall market for tablets is still growing, so if Apple lost 10 percent to 15 percent in market share, they would probably still have more sales of the iPad because of a tablet market growing faster than their slow loss of share.
That's not to say there won't eventually be a serious competitor to the iPad. But even while most companies struggle to get a tablet to market, Apple is about to release their iPad 2.
Even the presumably higher-quality XOOM from Motorola Mobility has barely made a whimper of a noise against iPad.
Although the market share held by Apple's iPad will surely fall, as no product or company can maintain the type of market share enjoyed by Apple and iPad, the overall market for tablets is still growing, so if Apple lost 10 percent to 15 percent in market share, they would probably still have more sales of the iPad because of a tablet market growing faster than their slow loss of share.
Thursday, February 24, 2011
Arrival of Xoom (MMI) Officially Launches iPad (AAPL) Tablet War
After months of speculation, the tablet wars begin in earnest this week. Motorola is releasing its Xoom (NYSE:MMI) tablet on Feb. 24, and I consider it the first truly comparable competitor to Apple’s (NASDAQ:AAPL) hit iPad. That is partly because it is the first iPad challenger to run Honeycomb, an elegant new version of Google’s Android operating system designed especially for tablets.
Both Motorola’s hardware and Google’s new software are impressive and, after testing it for about a week, I believe the Xoom beats the first-generation iPad in certain respects, though it lags in others. Like the iPad, the Xoom has a roomy 10-inch screen, and it’s about the same thickness and weight as the iPad, albeit narrower and longer. And, like the iPad’s operating system, Honeycomb gives software the ability to make good use of that screen real estate, with apps that are more computer-like than those on a smartphone.
Full Story
Both Motorola’s hardware and Google’s new software are impressive and, after testing it for about a week, I believe the Xoom beats the first-generation iPad in certain respects, though it lags in others. Like the iPad, the Xoom has a roomy 10-inch screen, and it’s about the same thickness and weight as the iPad, albeit narrower and longer. And, like the iPad’s operating system, Honeycomb gives software the ability to make good use of that screen real estate, with apps that are more computer-like than those on a smartphone.
Full Story
Thursday, January 6, 2011
Motorola Mobility (NYSE:MMI) Getting Boost from Xoom Tablet
Analysts like what Motorola Mobility Holdings (NYSE:MMI) unveiled at CES, with Goldman Sachs (NYSE:GS) saying they "came away more positive on MMI, as the company announced three new smartphones and a tablet, which in our opinion were its best set of product announcements in quite some time."
Along with Xoom, Goldman also cited the Bionic Smartphone as a significant entry for them. They also introduced Atrix 4G smartphones at the show. Xoom is powered by Google (NASDAQ: GOOG) Android Honeycomb.
Concerning the Droid Bionic, Gleacher added it should help Motorola Mobility compete on the Verizon (NYSE:VZ) network even when it in brings Apple's (NASDAQ:AAPL) iPhone into the fold.
Motorola Mobility was trading at $32.98, up $0.77, or 2.39 percent, as of $1:13 PM EST.
Along with Xoom, Goldman also cited the Bionic Smartphone as a significant entry for them. They also introduced Atrix 4G smartphones at the show. Xoom is powered by Google (NASDAQ: GOOG) Android Honeycomb.
Concerning the Droid Bionic, Gleacher added it should help Motorola Mobility compete on the Verizon (NYSE:VZ) network even when it in brings Apple's (NASDAQ:AAPL) iPhone into the fold.
Motorola Mobility was trading at $32.98, up $0.77, or 2.39 percent, as of $1:13 PM EST.
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