Pacific Crest Analyst, James Faucette, has slashed his revenue estimate for Motorola by over $1 Billion dollars for this year and is decreasing expectations for Motorola going into 2012. He has based this decision on bad sales for two of Motorola’s key franchise products, the Motorola Xoom and Motorola Atrix.
We reported earlier in the week that Motorola would be revamping their strategy when releasing the Motorola Xoom tablet in the UK. They are retweaking both their advertising campaign and pricing structure which seems to be the key points in why the Xoom and Atrix are failing. Unconfirmed reports suggest the Motorola Xoom hasn’t even sold 100,000 units yet, and that is “Quite Slow”.
More after the break
Faucette has also called sales of the AT&T Motorola Flagship device, the Motorola Atrix, as slow as well. The Motorola Atrix is a dual core Android device which supports a wide range of “dock” accessories. A “lapdock” laptop like interface is selling for $500 and only works when powered by the Atrix phones. There was also rumor at MWC that Motorola may debut a “tablet dock” device as well, dubbed “Tabdock”.
Just prior to the release of the Motorola Atrix AT&T debuted the HTC Inspire 4G, as their first “4g” device on the network. We actually love this phone as you can tell by our two reviews. That, coupled with the fact that you can pick up an iPhone 3Gs for just $50 makes the decision at the AT&T core store hard to pick up a Motorola Atrix. The pricing on the “lapdock” is almost laughable considering you can pick up an Atrix and a netbook for $100 less and that’s before you calculate the total cost of ownership and the upgraded data plan required to go with the lapdock.
Faucette cut his 2011 estimate for Motorola from $13.7 billion to $12.25 billion. In 2012 he cut even deeper, striking Motorola from $15.34 billion to $13.62 billion. Faucette did add that Motorola Mobility’s respected management could limit any downside.