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Technology Stocks : Motorola (MOT)

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To: JakeStraw who wrote (2899)5/15/2007 1:57:27 PM
From: John Koligman  Read Replies (1) of 3436
 
CIBC comments on Motorola (NYSE:MOT) saying their mid-quarter checks suggests MOT has managed to stabilize its handset market share in most regions, yet in Asia inventories remain high and continue to make an impact on sell-in. Given Asia's impact on MOT, they are lowering their
shipments target in 2Q07 to 44.5M (-2% QoQ) from 46M.

Firm notes they have seen evidence of two trends that illustrate the progress MOT is making internally to address its issues. Adoption of a firm global pricing policy (and adhering to it). A shake up in the global distribution system, reducing arbitrage activity and forcing regional sell-through disciplines.

MOT will host an event on May 15 in which it will show a mix of already introduced models and new models, including new derivatives of the MOTOFONE and a new slick RAZR-like clamshell. CIBC expects features to still be light, and would keep expectations low. Looks for late '07 for change.
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