Motorola announced a a drop in second quarter 2007 profits and reduced the outlook for the entire year for the mobile device division. The main reason for the decline is based on lower sales volumes in Europe and Asia. So what's the problem? Bad phones, not enough?




It doesn't seem Euro and Asian markets are in love with Motorola right now. Market share is shifting to Nokia which sells more than one in three cellphones in the world.

Nokia has a very strong product mix from the bottom to the top, coupled with and expected increase in demand from emerging markets, will help improve Nokia's leading position in the April-June quarter.

Motorola said it shipped 35-36 million handsets in the quarter, down from 45.4 million in the first three months, which could see third-placed Samsung knock Motorola from its No. 2 ranking.

Before Motorola's profit warning, Nokia was forecast to have sold around 100 million handsets in the quarter.

Technorati Tags: motorola, samsung, samsung phones, nokia, nokia phone, motorola phones

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