If timing is everything, Motorola is surely late for a very important date. In Motorola's earnings call on Thursday, the company made predictions that they would not meet expectations in the Q3 due to product delays and price cuts.
Investors were expecting Motorola's newest anticipated device, the LTE capable Bionic, to be released August, after already being delayed from a release earlier this year.
Motorola originally announced the device at the CES convention in January. However, the company is now announcing that the Bionic will not be launching until this fall. The delay is considered a big hit to the company because it will be going up against the next version of Apple's iPhone. That fact was not lost by investors.
"It would have been nice if Motorola had a clear window prior to the release of the new iPhone," CL King analyst Lawrence Harris told Reuters.
Harris added "It's highly unusual to have a product delayed this long. They really had to go back to the drawing board in this."
On top of the Bionic's delays, Motorola is also delaying their newest update of the Xoom tablet. To continue to add insult to injury, Motorola had to cut the price of their current Xoom tablet to $499 from $799 after disappointing sales.
Chief Executive Sanjay Jha conceded that the company had overestimated how much the market was willing to pay for a tablet.
Jha made a promise though, that Motorola would be coming out with 5 LTE based devices by this year - two of them smart phones and three of them being tablets. Included in the five are the Bionic and Xoom upgrade.
During the earnings call, Jha was even asked if Motorola would have to lay off some of its employees due to their current situation. Jha replied that Motorola was not considering any layoffs at the moment but they were open to the possibility if needed.
The company predicted that they will either break even or see a small profit in the next quarter. Under the news, Motorola's stock sank 3%.