Following a rather weak first quarter earnings report and a dismal outlook, some feared that Motorola was going to start dumping excess inventory and into the market, and start aggressive discounting. Apparently that might have started already.
SMS Text News reports that Orange is doing brisk sales on Moto. Why? Free phones with new accounts, and around $60 for upgrades. In the US, with the exception of KRZR most of the Moto phones are being offered at ridiculously low prices for new customers, especially at Cingular.
Will this lead to follow-on discounting from other phone makers, thus creating a whole new mobile handset problem?
What new problem? Profit margin problems? Hasn’t then been around a while already?
Doug
I would love to see Nokia doing something like this and selling N95 at $100 a peice :) that would do it for the time being as I need one :)
Problem similar to the 2001 economy crash perhaps?!
Sounds to me like Moto doesn’t have an effective demand planning system in place — but thats impossible because they have excellent SCM facilities?