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Motorola Mobility loses $32 million as Xoom sales collapse in Q3

post #1 of 52
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Motorola Mobility announced revenues of $3.3 billion in the third quarter on sales of 4.8 million smartphones and just 100,000 Xoom tablets that resulted in an operating loss of $32 million.

The company's Mobile Devices group contributed $2.4 billion toward overall revenues, shipping 11.6 million mobile devices, 4.8 million of which were Android smartphones. But that group itself lost $41 million in the quarter.

Compared to its year ago quarter, Motorola's Mobile Devices group sold 2.5 million more phones (up from 9.1 million total) but only 1 million additional smartphones (up from 3.8 million). Over the last three quarters of 2011, Mobile Devices has lost $215 million.

Earlier in the year, Motorola had shipped 250,000 Xoom tablets in the first quarter and then 400,000 in the second quarter, making this quarter's trickle of 100,000 evidence that the Android 3.0 Honeycomb flagship has sunk.

Motorola's Home segment, which builds set top boxes and video equipment, brought in just $825 million but its earnings contributed $54 million.



Google announced plans in August to acquire Motorola Mobility, ostensibly to use its patents to "protect" Android from intellectual property infringement cases. However, Motorola's stated objectives indicate that Google was really trying to prevent Motorola from suing other Android licensees itself. Motorola had also threatened to build its own mobile OS or join Microsoft in making Windows Phone 7 devices.

Motorola stated that its acquisition by Google "is expected to close by the end of 2011 or early 2012," and that the company "will hold a special meeting of stockholders on Nov. 17, 2011, to seek stockholder approval of the proposed merger with Google."
post #2 of 52
I'm sure RIM will be following suit here shortly.
post #3 of 52
Where's the fire sale? My brother and I are sharing a $100 webOS tablet. Its great just for reading news websites.
post #4 of 52
Shame.

Only asian companies makes money from android?

What IS wrong with USA companies?
License kills innovation urge.
I can se Samsung selling its own OS in A near future, SONY perhaps



Build yr own future, stop riding on someone's else back.
Look at German car makers, they build the ultimate tech for the automobile, if you do not like Apple.
post #5 of 52
Xoooooomm , what was that? Where did it go?
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post #6 of 52
I know a true believer who rushed out to buy one of these damn Xooms when they first hit the market; instead he uses his first-Gen iPad all the time. And this is someone who is ideologically opposed to Apple's walled garden. But then I remember the lady from Westboro Baptist Church tweeting about protesting Steve Jobs' funeral FROM HER IPHONE. Yes, even the haters secretly love Apple.

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post #7 of 52
What a mess Google has bought
post #8 of 52
Quote:
Originally Posted by tylerk36 View Post

Xoooooomm , what was that? Where did it go?

At a local mall, I see an Verizon kiosk where a Xoom, Galaxy and iPad2 are on display. Only the iPad is on. The Xoom and Galaxy are turned off. Which device do passersby look? They all try out the iPad. Nobody paid attention to the other 2 things. How pitiful!
post #9 of 52
"Motorola Mobility loses $32 million as Xoom sales collapse in Q3"

Collapse?? We all know the real story, every android maker operate the same way, they stuff market channel with hundred thousand crappy devices, post record shipping numbers who everyone interpreted like amazing sold numbers, and after one or two quarter retails channel bounce back all they're unsold inventory back to their face or liquidate stocks.
post #10 of 52
Quote:
Originally Posted by jj.yuan View Post

At a local mall, I see an Verizon kiosk where a Xoom, Galaxy and iPad2 are on display. Only the iPad is on. The Xoom and Galaxy are turned off. Which device do passersby look? They all try out the iPad. Nobody paid attention to the other 2 things. How pitiful!

Same thing happens at Best Buy and Target too. My guess is the non-iPads break and no one gives two craps to replace them or get them fixed.
post #11 of 52
Motorola Mobility loses $32 million as Xoom sales collapse in Q3
Motorola Mobility announced revenues of $3.3 billion in the third quarter on sales of 4.8 million smartphones and just 100,000 Xoom tablets that resulted in an operating loss of $32 million.




Someone famous recently said that Android was a train wreck.

This is what a $32 million train wreck looks like.
post #12 of 52
I wouldn't want a Xoom, even if it cost $49.99. I question the sanity and the intelligence of anybody who bought a Xoom at any price.

It was clear that it was a total failure the minute they announced it. I said it back then, and I'm saying it now. Some people just don't have good judgement and they're not very bright, or perhaps these people have extra money lying around that they don't mind throwing away.

And besides their horrible product, the ad campaign really, really sucked. A retard could come up with a better idea. I remember the ad being some dork sitting in a spaceship or something.

The people in charge of Motorola are clueless idiots, and the Xoom is proof of that. And if the leadership of Motorola is made up of clueless morons, then what might the people who actually bought a Xoom be? That's quite easy, they're even dumber.
post #13 of 52
Quote:
Originally Posted by Apple ][ View Post

I wouldn't want a Xoom, even if it cost $49.99. I question the sanity and the intelligence of anybody who bought a Xoom at any price.

It's called the "anything but Apple" syndrome. The nerd tech wannabes will buy anything that doesn't have the Apple logo on it and call it "superior." And they'll tell you how happy they are with their choice. There is, in fact, an anti-Apple RDF.
post #14 of 52
Wow. Sounds great. I think I'll buy them out for $12 billion.

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post #15 of 52
Why buy the Xoom when you can get the Galaxy Tab 10.1 or ASUS Transformer? Both are much better products.
post #16 of 52
Quote:
Originally Posted by lkrupp View Post

It's called the "anything but Apple" syndrome. The nerd tech wannabes will buy anything that doesn't have the Apple logo on it and call it "superior." And they'll tell you how happy they are with their choice. There is, in fact, an anti-Apple RDF.

I find it hilarious that there are dumb people out there who would go and blow money on failed products and gigantic flops just because they hate Apple. I don't want these people to convert to Apple, I want them to keep buying flops and failures. Whenever I meet somebody I don't like, I'd always advise them to buy an Android phone or even a Xoom! And I mean that seriously. Not everybody deserves to use Apple products.
post #17 of 52
I don't get it. The iPad is only a passing fancy. No one wants to spend so much money on a toy. People are really strange.

Put an iPad into the hands of someone who has never used one, and you've started a chain of new buyers. The damn thing is just addictive.
post #18 of 52
so Moto made about 750k Zooms. well, early adopter Fandroids will get their LTE and Ice Cream update someday, so it's not a total disaster for them. and there will be some good deals when the rest are dumped after the new model comes out.

unlike the total Fandroid suckers who bought the 2010 7" Samsung Galaxy tab - 2 million shipped! - that is pathetically stuck with Froyo forever. gee ... no one at Engadget and the other Droid fanboy sites ever mentions that one anymore, kinda like the family member who went to jail ...
post #19 of 52
Quote:
Originally Posted by dagamer34 View Post

Why buy the Xoom when you can get the Galaxy Tab 10.1 or ASUS Transformer? Both are much better products.

None of the other Android tablets are better due to the deficiencies of the OS. Regarding the Android tablets, you could double the processor performance, double the screen resolution, half the weight, double the battery life ... and still, they will not compare favorably to the iPad.
post #20 of 52
here is everything that is wrong with most tech hardware companies: no one around that can (A) tell engineers and designers 'this is shit' and (B) know what isn't 'shit'
(thats my take on the steve jobs philosophy that made Apple. these other companies are run by greedy dimbulbs that only care about how 'hip' and important they themselves are)
post #21 of 52
Quote:
Originally Posted by dagamer34 View Post

Why buy the Xoom when you can get the Galaxy Tab 10.1 or ASUS Transformer? Both are much better products.

Why buy an inferior iPad clone when you can buy the real thing? Android is a total mess on phones, and even worse on tablets.
post #22 of 52
Apple sold 11m iPads in Q3. Motorola shipped 100,000. I really struggle to understand the claim that the iPad has only 68% of the tablet market. Exactly which tablets are closing that gap?
post #23 of 52
Quote:
Originally Posted by Ochyming View Post

Shame.

Only asian companies makes money from android?

What IS wrong with USA companies?
License kills innovation urge.
I can se Samsung selling its own OS in A near future, SONY perhaps



Build yr own future, stop riding on someone's else back.
Look at German car makers, they build the ultimate tech for the automobile, if you do not like Apple.

It's a good question - what is compelling consumers to choose HTC and particularly Samsung over Motorola? The specs are not much different. To me, the Motorola humpback is poor design. Perhaps this is a popular opinion. Alternatively, Motorola is not getting good product placement at the carriers.
post #24 of 52
Quote:
Originally Posted by focher View Post

Apple sold 11m iPads in Q3. Motorola shipped 100,000. I really struggle to understand the claim that the iPad has only 68% of the tablet market. Exactly which tablets are closing that gap?

The *anal-ysts* who come up with such market splits count everything, including the Nook, as a tablet.
post #25 of 52
Quote:
Originally Posted by screamingfist View Post

here is everything that is wrong with most tech hardware companies: no one around that can (A) tell engineers and designers 'this is shit' and (B) know what isn't 'shit'

Very interesting! Very interesting, indeed! Apple had Jobs who can say no, and he has a vision that everyone can more or less trust. In my company, A LOT of money is wasted because of indecisions (motivated mostly by internal politics). If we had a Jobs at the top, I am sure we would have been the top gun in our own industry.
post #26 of 52
Quote:
Originally Posted by focher View Post

Apple sold 11m iPads in Q3. Motorola shipped 100,000. I really struggle to understand the claim that the iPad has only 68% of the tablet market. Exactly which tablets are closing that gap?

The Xoom is not the only Android tablet. People in the market for an Android tablet are probably buying the Samsung Galaxy tablet instead.
post #27 of 52
Quote:
Originally Posted by DougMcNerd View Post

None of the other Android tablets are better due to the deficiencies of the OS. Regarding the Android tablets, you could double the processor performance, double the screen resolution, half the weight, double the battery life ... and still, they will not compare favorably to the iPad.

except that the OS isn't that far behind....


if you cut it to half weight, double battery, double rez, double cpu/gpu performance.

you are saying because of the Operating System having some parts that are worse than iOS, and some parts that are better (true fact, if you want to argue, look at Apple's notifications, even upgraded (copying android, though won't be admitted) still not as polished). Now to top that off, iOS has a lot more going for it than Android, for the specs you are putting out it would have to run a non-phone OS (or one thats over a year-two old) to be bad...

that is, if it was priced at or below ipad (comparing storage and screen size)

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post #28 of 52
Seriously, some of the comments on here are a little much. Losing 32 million is definitely pretty bad, but more then half that lose came from the Google buy out. And let's not forget that it was only 2001 the last time apple posted a yearly loss.
That being said this tablet was never popular and is probably not even in the top 5 selling android tablets.

P.S. the kindle fire is said to outsell even the mighty ipad 2 in first month sales!

source:


http://gigaom.com/2011/10/24/jp-morg...million-in-q4/

among many other sources, this was just the first one I saw.

These will all add to andoid market in the tablet space and should be the first real threat to apples market share. I doubt that the first gen fire will sell more then a few million, and by that I mean less then 10 million. But just as the ipad 2 sold more then the 1 the fire 2 will sell many more then the 1 most likely. The follwing kindle fires should be cheaper too, or at least add more features at the same price point as supply chain gets dialed in.

Just trying to keep this circle jerk in perspective.
post #29 of 52
Xoom is also a money transfer company like Western Union. Wanna send money fast send it with Xoom. Ironic. Why not call the tablet Moto Pad. Hey I better copy right this name. Moto Pad . There. Yee haw I am gonna be rich.
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post #30 of 52
Quote:
Originally Posted by 2385amh View Post

P.S. the kindle fire is said to outsell even the mighty ipad 2 in first month sales!... These will all add to andoid market in the tablet space and should be the first real threat to apples market share. I doubt that the first gen fire will sell more then a few million, and by that I mean less then 10 million. But just as the ipad 2 sold more then the 1 the fire 2 will sell many more then the 1 most likely.

a few problems here...

Amazon does not release numbers, so a blog stating that the Fire is selling like hot cakes is not proof of anything. Furthermore, this is the Holiday season. Like with the Kinect, of course these new devices will outpace the sales of a device released at the end of the winter quarter in March or April! That should be a no brainer.

If Amazon is selling millions of them, no one knows for sure whether this will help Amazon or actually hurt Amazon. They're taking a loss on the hardware in the hopes of selling content. The problem is, if someone was really interested a tablet, they would buy an iPad... plain and simple.

Anyone who cannot afford an iPad and choose to buy a much cheaper Fire tablet - a new type of device they may not know they'll like or not - are they really willing to pay for content? So far, the answer to that is a resounding, NO. Android users have thus far been resistant to purchasing content and instead prefer ad-supported freebies.

What everyone has failed to notice about Apple and their user base, is that the users are in fact willing to pay not only for the devices, but also the content. No other company has been able to crack this market like Apple has, and I really don't see Amazon doing this either.

Original iPads are selling for a little more than $300 on eBay, a small markup for a much better ecosystem and a much better tablet.

The only people that might be interested in a Fire, is a current Kindle user who wishes their device could do a bit more.
Disclaimer: The things I say are merely my own personal opinion and may or may not be based on facts. At certain points in any discussion, sarcasm may ensue.
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post #31 of 52
Quote:
Originally Posted by dagamer34 View Post

Why buy the Xoom when you can get the Galaxy Tab 10.1 or ASUS Transformer? Both are much better products.

I agree. And the main reason the Xoom failed is it's crappy screen (by comparison) and partially because of the promised 4G then "mail it back to the factory for an upgrade" fiasco.

Personally I would like to see how the Asus Transformer Prime compares to everything before it with nVidia's quad core chip.
post #32 of 52
Quote:
Originally Posted by OldMacGuy View Post

Put an iPad into the hands of someone who has never used one, and you've started a chain of new buyers. The damn thing is just addictive.

This is true. As soon as you spend 5 or 10 minutes with an iPad, even the best laptop feels like ancient technology.

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post #33 of 52
The Xoom failed because of many reasons: First was the whole no wi-fi option, but you could spend $800 and get one from Verizon and be forced to purchase a 1 month subscription to 3G service when it launched, if you really wanted a wi-fi only tablet. It had a dim, crappy screen, and a cheep feel to it. Honeycomb was and still is a crude OS. There are still very few apps that aren't upconverted from the phone. Motorola had the audacity to charge more for a Xoom than an iPad cost, at launch, despite no market behind it, little brand loyalty, and no ecosystem to support an Android tablet.

Motorola simply has no marketing savvy what-so-ever...
post #34 of 52
Quote:
Originally Posted by Apple ][ View Post

I wouldn't want a Xoom, even if it cost $49.99. I question the sanity and the intelligence of anybody who bought a Xoom at any price.

It was clear that it was a total failure the minute they announced it. I said it back then, and I'm saying it now. Some people just don't have good judgement and they're not very bright, or perhaps these people have extra money lying around that they don't mind throwing away.

And besides their horrible product, the ad campaign really, really sucked. A retard could come up with a better idea. I remember the ad being some dork sitting in a spaceship or something.

The people in charge of Motorola are clueless idiots, and the Xoom is proof of that. And if the leadership of Motorola is made up of clueless morons, then what might the people who actually bought a Xoom be? That's quite easy, they're even dumber.

Quit pulling your punches. How do you really feel?
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post #35 of 52
Quote:
Originally Posted by dagamer34 View Post

Why buy the Xoom when you can get the Galaxy Tab 10.1 or ASUS Transformer? Both are much better products.

Better than Xoom. Damned with faint praise.
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post #36 of 52
Quote:
Originally Posted by Apple ][ View Post

I wouldn't want a Xoom, even if it cost $49.99. I question the sanity and the intelligence of anybody who bought a Xoom at any price.

Ok, that's just troll baiting.
Carry on

Quote:
Originally Posted by Apple ][ View Post

Some people just don't have good judgement and they're not very bright, or perhaps these people have extra money lying around that they don't mind throwing away.

Way too harsh.

Quote:
Originally Posted by Apple ][ View Post

And besides their horrible product, the ad campaign really, really sucked. A retard could come up with a better idea. I remember the ad being some dork sitting in a spaceship or something.

Agreed. But it gave spec-sheet-loving fandroids boners

Quote:
Originally Posted by Apple ][ View Post

The people in charge of Motorola are clueless idiots, and the Xoom is proof of that. And if the leadership of Motorola is made up of clueless morons, then what might the people who actually bought a Xoom be? That's quite easy, they're even dumber.

SANJAY IS NOT AN IDIOT. He's a copy cat. There's a difference.

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post #37 of 52
Quote:
Originally Posted by stelligent View Post

It's a good question - what is compelling consumers to choose HTC and particularly Samsung over Motorola? The specs are not much different. To me, the Motorola humpback is poor design. Perhaps this is a popular opinion. Alternatively, Motorola is not getting good product placement at the carriers.

Those of us who were fans for the 15 years before the Apple retail stores showed up know why. We often overlook the importance of these stores in the eventual dominance of Apple. Prior to them, it was the Apple computers that were turned off and broken at retail outlets while pimply geeks extolled the virtues of the beige box PCs to customers.
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post #38 of 52
Quote:
Originally Posted by 2385amh View Post

S
These will all add to andoid market in the tablet space and should be the first real threat to apples market share. I doubt that the first gen fire will sell more then a few million, and by that I mean less then 10 million. But just as the ipad 2 sold more then the 1 the fire 2 will sell many more then the 1 most likely. The follwing kindle fires should be cheaper too, or at least add more features at the same price point as supply chain gets dialed in.

Just trying to keep this circle jerk in perspective.

There is no doubt that the Fire will be a worthy competitor. But honestly, at this point the only thing it is competitive on is price. As it matures and builds upon Amazon's infrastructure it will be in a position to be a real competitor. Much more than the other lame-o tablet wannabes that have no real ecosystem to be a part of.

No sane person believes any product can maintain anything like Apple's current hegemony in the tablet market. It will always be the preferred product, but there is a lot of money to be made selling "almost as good as" products.
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post #39 of 52
Quote:
Originally Posted by lkrupp View Post

It's called the "anything but Apple" syndrome. The nerd tech wannabes will buy anything that doesn't have the Apple logo on it and call it "superior." And they'll tell you how happy they are with their choice. There is, in fact, an anti-Apple RDF.

Yep, I know someone who paid extra to get a Xoom on eBay when they weren’t sold locally! Nor were Xoom cases available, so she stored it in an ill-fitting iPad flipcase.

She couldn’t name any benefits of the Xoom over the iPad. She just knows that Apple = evil and Google = good. She loves her Android phone, too, with the battery that’s dead by lunch and the apps that confuse her and crash

I hope these Xooms keep getting software updates to Android 4.0 and beyond... yeah, right. More abandoned Android devices, obsolete before you finish paying for them...
post #40 of 52
Quote:
Originally Posted by Ochyming View Post

Look at German car makers, they build the ultimate tech for the automobile, if you do not like Apple.

It's strange Germany hasn't gotten more into consumer, tech, huh? I wonder why.
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