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 Send to email | Crappy Cellphone Sales Mean A Gloomy Forecast For Nokia And Motorola (NOK, MOT) in NOKRIMMAAPLCELLMOT |  By Silicon
el 07-Jul-2008 |
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 Things will probably get worse before they get better for Nokia (NOK) and Motorola (MOT) shareholders, who have seen their shares tank this year. Credit Suisse analyst Kulbinder Garcha whacked Q2 estimates for both cellphone makers today based on "weaker than expected" demand for mobile phones.
Where'd he get that idea? In part, because of recent scary comments from Sony Ericsson, cellphone distributor Brightpoint (CELL), and Texas Instruments. Garcha's own checks also suggest sales are below expectations because of weak demand in Western Europe (Nokia's home turf) and China (growth market).
Nokia: For the rest of the year, Garcha is also concerned about increasing competition in the smartphone market; we assume he's referring to Research In Motion (RIMM), which is rolling out its BlackBerry gadgets in more markets, and Apple's (AAPL) iPhone 3G, which goes on sale in more than 70 countries this year. For now, Garcha cut his Q2 revenue estimate by 2% to 12.4 billion, below consensus of 12.9 billion; and EPS by 0.02 to 0.36, below consensus of 0.37.
Motorola: More "significant" market share loss in North America (down 500 basis points to 20%) and Europe, Latin America, and China. Garcha estimates 23.1 units in Q2, down 35% year-over-year. He cut Q2 revenue estimates 3.4% to $7.0 billion, versus consensus $7.8 billion; and EPS to -$0.03, in-line with -$0.03 consensus.
Nokia shares are down 0.7% to $24.34. Motorola is trading down 0.3% to $7.04.
See Also:
RIM's Rapid Growth Plan: A $49 BlackBerry Flip Phone?
Motorola Still Foundering, No Quick Fix In Sight
Nokia Blindsided By iPhone, BlackBerry -- No 'Credible' Answer
Where Nokia Could Fail: Competing With Apple And RIM
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| Motorola: Here Come The Cuts (MOT) | | Motorola's radical realignment of its cellphone business means things are going to suck for the next nine months or so. So expect to see a lot more of this: Analysts taking a red pen to their estimates for Motorola's Q4 [..] Read complete article | | Published 31-Oct-2008 by Silicon in MSFTGOOG
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