Analyst: Motorola Xoom a Bust UPDATE: Hard Numbers

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UPDATE: Analysts at Deutsche Bank claim to have determined Xoom sales by checking the number of Honeycomb users through the Android developers site. Currently, there are only 100,000 people using Honeycomb, meaning that only 100,000 Xooms have been sold thus far. This pales when compared to sales of the iPad 2, with Apple’s number sold for March reaching about 2.5 million.

Source: BGR

Considering the current lack of success of both the Motorola Xoom and Atrix, one analyst has started reevaluating his forecast for Motorola Mobility (MMI), believing that the failure of these two products could undercut the entire corporation.

Motorola XoomJames Faucette, analyst at Pacific Crest, said that sales of the Xoom and Atrix “have been disappointing,” and that Motorola could be in bad shape if it does not “refresh its product portfolio for the second half of 2011.”

The Motorola Xoom was largely hyped and supposed to launch out of the gates as Apple’s first real competitor in the tablet market, with some going so far as to label the Xoom an iPad killer. Instead, poor sales of the Xoom have caused Faucette to lower his 2011 revenue forecast for Motorola from $13.7 billion to $12.2 billion, and subsequently lowered his expectation for an increase in stock price/profit projection from 94 cents to 64 cents.

Faucette considers Motorola to still be in a relatively stable position, as indicated by the fact that he still forecasts an increase in the company’s profits, but he feels that MMI needs to release some unique, high quality, popular products soon to ensure continued success.

Faucette’s phrasing was that Motorola needs to “substantially differentiate themselves from the rest of the pack. If they fail to do so, we believe shareholders may be looking at another meaningful step down.”

Source: Forbes



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