Motorola CEO says Razr technical glitch solved Reuters Wed Mar 15, 2006 8:23 AM ET16
http://today.reuters.com/news/newsArticle.aspx?type=technologyNews&storyID=2006-03-15T132252Z_01_PEK27893_RTRUKOC_0_US-CHINA-MOTOROLA.xml BEIJING (Reuters) - Motorola Inc. (MOT.N: Quote, Profile, Research), the world's second-largest mobile phone maker, said on Wednesday it had solved a technical glitch in its hot-selling Razr cell phone that had stopped shipments for three to four days. "We caught it and fixed it," Chief Executive Edward Zander told reporters. "There were three or four days where we stopped shipments and went in and fixed it." The problem came from a second-source firm that had only recently started to supply Motorola with components for the ultra slim Razr, he said. Zander said the problem was in phones shipped to just two carriers in the United States -- Cingular Wireless and T-Mobile USA -- and most of the problem phones had been caught in the inventory of those two firms. "There will be no material impact. We will meet our demand from customers," he said. Caris & Co. had downgraded Motorola Inc. to "average" from "above average" due to the technical problem. The firm's fourth-quarter net earnings shot up 86 percent to $1.2 billion on the strength of demand for its mobile phones, such as the Razr. Motorola controls about 19 percent of the worldwide handset market, but lags Finnish rival Nokia (NOK1V.HE: Quote, Profile, Research) by a wide margin. It's shares have fallen 5.58 percent this year to the $21.33 Tuesday close in the U.S., compared with the tech-heavy Nasdaq <.IXIC> index's 4.1 percent gain over the same period. Zander said it was too early to say what the cost savings would be from the company's move in early March to combine its network equipment unit with its government and corporate units. "We are hiring in other places in the company," he said. "It allows us to maybe redeploy some of our resources differently." (US$=8.04 yuan) ================================ George Antunes, Political Science Dept University of Houston; Houston, TX 77204 Voice: 713-743-3923 Fax: 713-743-3927 antunes at uh dot edu Reply with a "Thank you" if you liked this post. _____________________________ MEDIANEWS mailing list [email protected] To unsubscribe send an email to: [EMAIL PROTECTED]
