Analysts don't seem too convinced by Motororola's recent efforts in the smartphone and tablet markets.
Pacific Crest analyst James Faucette said in an analyst note yesterday that channel checks for Motorola's Xoom and Atrix 4G have come up with some disappointing results. In response Faucette cut Motorola's 2011 revenue forecast from $13.7 billion to $12.2 billion. The company faces similar cuts in 2012, Faucette said, dropping forecasts from $15.3 billion to $13.6 billion for next year. Faucette also cautioned that those numbers could drop further if Motorola doesn't take efforts to substantially differentiate themselves from the rest of the pack.
RBC Capital Markets analyst Mark Sue made similar forecast cuts last Friday, dropping price targets for Motorola stock from $38 to $33 in addition to dropping sales and revenue forecasts on slow Xoom sales. Sue cut sales estimates for the Xoom by 100,000 units to 300,000, citing inceased competition from rival tablet manufacturers.