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Motorola posts $80M quarterly loss, sells only 200K tablets

post #1 of 51
Thread Starter 
Motorola Mobility's fiscal year ended on a sour note with poor tablet and smartphone sales leading to a Q4 2011 loss of $80 million, which was further exacerbated by merger costs associated with a planned Google takeover.

In posting its fourth quarter and full-year results for 2011 on Thursday, the RAZR smartphone maker reported that despite a slight increase in yearly revenue, low device sales and high operating costs ultimately led to a decline in earnings from the year ago quarter.

Year-to-year revenue increased to $3.4 billion in 2011, however the fourth quarter saw a precipitous decline in earnings compared to 2010, with a net loss of $80 million compared to $80 million in gains in the quarter one year prior. The disappointing report can be blamed on costs associated with Motorola's merger with Google, but relatively stagnant device sales during the usually lucrative holiday season are also telling.

Most notably, the company sold 200,000 Xoom and Xyboard tablets in the last quarter, which brought the yearly total to one million. In comparison, Apple sold over 15 million iPads in the last quarter alone as it continues its stranglehold on the global tablet market.


Motorola Xyboard 4G tablet | Source: Motorola


Also contributing to the poor quarterly showing was the company's mobile devices unit which posted a $70 million net operating loss. The division's smartphone sales fared a bit better than the tablets numbers, with the 5.3 million units moved in quarter four accounting for almost 30 percent of the 18.7 million total for the year. Combined with feature phone sales, Motorola was able to sell 42.4 million in 2011.

Google is planning to take over Motorola in a proposed $12.5 billion deal that would give the internet monolith access to a treasure trove of telecom patents to help bolster its Android mobile OS.
post #2 of 51
$80 million in the red this year, $80 million in the black last year. Not much to write home about either way.

I'm surprised that they weren't even more in the hole.
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post #3 of 51
Wait, wait, wait ... I thought they were supposed to bury Apple and the iPad/iPhone.
post #4 of 51
Congrats Google. This gem is all yours now. Welcome to the hardware business

Ha-ha

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post #5 of 51
So Moto barely sells any tablets and the IPad has 58% share? Does anyone believe amazon and Samsung have 42%.
post #6 of 51
Ok... Motorola only sold 200,000 tablets this quarter...

Who sold the other 10 million Android tablets this quarter?
post #7 of 51
Quote:
Originally Posted by jungmark View Post

So Moto barely sells any tablets and the IPad has 58% share? Does anyone believe amazon and Samsung have 42%.

I truly believe they have SHIPPED enough tablets to force the iPad down to 58% share.

I believe that the iPad has about 80% share in terms of tablets outside of their retail boxes.
post #8 of 51
200k tables sold was likely not enough to cover their Superbowl commercial alone:

http://www.youtube.com/watch?v=ZBUoLYOWR8I
post #9 of 51
So that's what $12.5 billion gets you?
post #10 of 51
Based on Android's definition of winning Motorola is also winning.


Quote:
Originally Posted by jungmark View Post

So Moto barely sells any tablets and the IPad has 58% share? Does anyone believe amazon and Samsung have 42%.

Apple is announcing numbers from their earnings calls while the other numbers are done by estimating what's been pushed to channels than adding them together. Not quite fair but since few are reporting hard numbers there isn't much else they can do. I'm sure we'll get a revised value soon enough and as always it's the non-Apple numbers that will change racially.

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post #11 of 51
Quote:
Originally Posted by jungmark View Post

So Moto barely sells any tablets and the IPad has 58% share? Does anyone believe amazon and Samsung have 42%.

What difference does it make what the market share is? All the Android tablet vendors combined including Amazon are making so little money from tablets it doesn't matter if the market share were reversed. Apple is making the major profits of market share from both smartphones and tablets. Android and vendor parters combined are making almost nothing. Why the media makes a big deal about Android tablets eating into iPad share, I really don't understand. No one actually knows how many Kindle Fires were sold outside of Jeff Bezos and he never tells solid numbers.
post #12 of 51
Quote:
Originally Posted by SolipsismX View Post

Apple is announcing numbers from their earnings calls while the other numbers are done by estimating what's been pushed to channels than adding them together. Not quite fair but since few are reporting hard numbers there isn't much else they can do. I'm sure we'll get a revised value soon enough and as always it's the non-Apple numbers that will change racially.

It seems that Apple can't win the market share game. Apple could announce sales of 25 million iPads and the competition, with the help of a little fairy dust, would announce that their sales reduce Apple's share to 30%... no numbers, nothing, just a statement saying that Apple is now at 30%.
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post #13 of 51
Quote:
Originally Posted by Tallest Skil View Post

I truly believe they have SHIPPED enough tablets to force the iPad down to 58% share.

I believe that the iPad has about 80% share in terms of tablets outside of their retail boxes.

Walk into any Staples, Office Depot, Costco, or Best Buy and you'll find plenty of non-Apple tablets quietly collecting dust.

Yea, and good luck finding a display unit that is fully functional. Once again, Apple's retail experience wins again.

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post #14 of 51
But, but... all the whining Fandroids have been preaching to us all this time that Android will bury iOS! Could it be possible that there is more to reality than just what's in their basements?
post #15 of 51
Quote:
Originally Posted by sflocal View Post

But, but... all the whining Fandroids have been preaching to us all this time that Android will bury iOS! Could it be possible that there is more to reality than just what's in their basements?

@ island hermit,

See, you have to make your comments about basements so general that the mods can't ding you for an ad hominem personal attack.

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post #16 of 51
Quote:
Originally Posted by island hermit View Post

It seems that Apple can't win the market share game. Apple could announce sales of 25 million iPads and the competition, with the help of a little fairy dust, would announce that their sales reduce Apple's share to 30%... no numbers, nothing, just a statement saying that Apple is now at 30%.

That's the essence of the "market share" game.

It's a comparison of a bunch of different companies' products... calculated by a 3rd party. A ranking... if you will.

They sit back and rank everything... who comes in first, second, and so on... but do you think Apple really cares about stuff like that?

Apple just sold 37 million iPhones... yet the multi-manufacturer "Android Consortium" sold more. Gee, I wonder why?

But hey... at least Apple didn't post a LOSS this quarter
post #17 of 51
Quote:
Originally Posted by sflocal View Post

But, but... all the whining Fandroids have been preaching to us all this time that Android will bury iOS! Could it be possible that there is more to reality than just what's in their basements?

It's not their basements. It's their moms' basements.

post #18 of 51
Haaaahahahahahaha. I love good news

http://www.youtube.com/watch?v=FgOX9mb7V4o

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post #19 of 51
Quote:
Originally Posted by Aizmov View Post

Haaaahahahahahaha. I love good news

http://www.youtube.com/watch?v=FgOX9mb7V4o

That was well worth a few million.
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post #20 of 51
WOT...

I was saving this for a RIMM thread...

But, event's have overtaken me...

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post #21 of 51
Quote:
Originally Posted by jungmark View Post

So Moto barely sells any tablets and the IPad has 58% share? Does anyone believe amazon and Samsung have 42%.

It's thought that the large majority of those tablets are cheap Chinese models selling in third world countries for $100 or so. We've seen a few on our shores over the past year and a half, and they're junk. But where income is very low, people buy them. The rest are Amazon Fires', which are thought to have had several million bought over the quarter.
post #22 of 51
Quote:
Originally Posted by Aizmov View Post

Haaaahahahahahaha. I love good news

http://www.youtube.com/watch?v=FgOX9mb7V4o

Motorola made a very good commercial, on par with Apple. Unfortunately the tablet they were advertising is not on par with Apple.

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post #23 of 51
Quote:
Originally Posted by melgross View Post

It's thought that the large majority of those tablets are cheap Chinese models selling in third world countries for $100 or so. We've seen a few on our shores over the past year and a half, and they're junk. But where income is very low, people buy them. The rest are Amazon Fires', which are thought to have had several million bought over the quarter.

I suspect that when Amazon posts earnings next week that we'll be able to reverse-engineer reasonable numbers of KF sales...
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post #24 of 51
Quote:
Originally Posted by jd_in_sb View Post

Motorola made a very good commercial, on par with Apple. Unfortunately the tablet they were advertising is not on par with Apple.

They were copying Apple's 1984 commercial... good on its own... but pales in comparison to the Mac 1984 ad.
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post #25 of 51
Quote:
Originally Posted by Aizmov View Post

Haaaahahahahahaha. I love good news

http://www.youtube.com/watch?v=FgOX9mb7V4o

Quote:
Originally Posted by island hermit View Post

They were copying Apple's 1984 commercial... good on its own... but pales in comparison to the Mac 1984 ad.

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post #26 of 51
Quote:
Originally Posted by Tallest Skil View Post

I truly believe they have SHIPPED enough tablets to force the iPad down to 58% share.

100% agree. That would explain it.

BTW, does anyone even believe a full 200,000 people bought a Motorola tablet? It's hard to imagine. I suspect the number was rounded up. And does this number ignore the number of units returned?
post #27 of 51
Quote:
Originally Posted by AppleInsider View Post

Most notably, the company sold 200,000 Xoom and Xyboard tablets in the last quarter, which brought the yearly total to one million. In comparison, Apple sold over 15 million iPads in the last quarter alone as it continues its stranglehold on the global tablet market.

But Slappy told us that the iPad was dying, and that Android was surging! What happened Slappy?

Xoom got your tongue?

HaHaHaHaHaHaHa!!!
post #28 of 51
Quote:
Originally Posted by sflocal View Post

But, but... all the whining Fandroids have been preaching to us all this time that Android will bury iOS! Could it be possible that there is more to reality than just what's in their basements?

I think you mean their PARENTS' basement. Anybody that uses Android lives in their PARENTS' basement!!!!
post #29 of 51
Quote:
Originally Posted by I am a Zither Zather Zuzz View Post

I think you mean their PARENTS' basement. Anybody that uses Android lives in their PARENTS' basement!!!!

I already tried that today and got an infraction for it.
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post #30 of 51
Quote:
Originally Posted by island hermit View Post

It seems that Apple can't win the market share game. Apple could announce sales of 25 million iPads and the competition, with the help of a little fairy dust, would announce that their sales reduce Apple's share to 30%... no numbers, nothing, just a statement saying that Apple is now at 30%.

To be fair, the fAndroids would then have to visit this Apple forum to try to rub the numbers in our faces, then disappear when it turns out that the large "sales" are being written off as returns / unsold inventory in the channel a quarter or two later. But I'm sure THIS will be the year of Android tablets!
post #31 of 51
Quote:
Originally Posted by Michael Scrip View Post

Ok... Motorola only sold 200,000 tablets this quarter...

Who sold the other 10 million Android tablets this quarter?

Mostly sub $200 tablets like the Kindle Fire and Nook. Amazon is losing $2.70 on each of those Kindle's sold. Not a proven business model yet, and I still believe that a Kindle or Nook is just a proving ground for the next iPad purchase. In the next year, I'd bet there will be lots of Kindle Fires on the used market, and Amazon will begin to feel the weight of a saturated market.
post #32 of 51
Quote:
Originally Posted by cmvsm View Post

Mostly sub $200 tablets like the Kindle Fire and Nook. Amazon is losing $2.70 on each of those Kindle's sold. Not a proven business model yet, and I still believe that a Kindle or Nook is just a proving ground for the next iPad purchase. In the next year, I'd bet there will be lots of Kindle Fires on the used market, and Amazon will begin to feel the weight of a saturated market.

I wish we could get a breakdown of Android-tablet sales but my gut feeling tells me a lot of them are no-name and run 2.3 or less.

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post #33 of 51
Quote:
Originally Posted by Michael Scrip View Post

Ok... Motorola only sold 200,000 tablets this quarter...

Who sold the other 10 million Android tablets this quarter?

I've been thinking about this. The only thing that makes sense is that the analysts were including eReaders in the total. If the added all the Kindles (not just the Fire) and Nook, they might have reached 10 M.

The intellectual dishonesty would be apparent, but they're analysts, so you have to expect that.
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post #34 of 51
What happened to the DROID series of handsets.. 2010 was a good year for those.. In 2011, didn't hear much about it.. it was all about Samsung
post #35 of 51
Quote:
Originally Posted by mrstep View Post

To be fair, the fAndroids would then have to visit this Apple forum to try to rub the numbers in our faces, then disappear when it turns out that the large "sales" are being written off as returns / unsold inventory in the channel a quarter or two later. But I'm sure THIS will be the year of Android tablets!

"Fandroid" since you all seem to have found a Patsy in slapppy and act like he's everyone since he's the most easily defeated person on this site. Being that he is quite possibly retarded and most likely a Poe.
post #36 of 51
Quote:
Originally Posted by island hermit View Post

$80 million in the red this year, $80 million in the black last year. Not much to write home about either way.

I'm surprised that they weren't even more in the hole.

$80 million this past quarter.
post #37 of 51
Quote:
Originally Posted by AbsoluteDesignz View Post

"Fandroid" since you all seem to have found a Patsy in slapppy and act like he's everyone since he's the most easily defeated person on this site. Being that he is quite possibly retarded and most likely a Poe.

Not entirely true. Ever read anything from DaHarder? He's probably single handedly responsible for most of these Android tablet sales. ...3 each for each member of his family.

I'm not making this up!
post #38 of 51
Quote:
Originally Posted by Blastdoor View Post

So that's what $12.5 billion gets you?

The $3 billion in cash that Motorola has in the bank and $5 billion in tax deduction spread over the next few years. Once you take that into account, the real cost is closer to $5 billion. Still not cheap, but a lot more reasonable than $12.5 billion.
post #39 of 51
Quote:
Originally Posted by Aizmov View Post

I wish we could get a breakdown of Android-tablet sales but my gut feeling tells me a lot of them are no-name and run 2.3 or less.

As far as I know there are no tablets running any higher than 2.3 that is sold officially
post #40 of 51
Apple, watch out. Just wait 'til next quarter.

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