12 July 2007
Mobile phone manufacturer Motorola is set to announce a fall in profits over the past three months.
The phone maker shipped out around 35 million handsets out worldwide during the second quarter of the year - a significant drop from the 45.4 million sent out to global retailers in the first three months of this year.
The firm has also revealed that it does not expect to make a profit on mobile phone handsets this year.
Motorola, the second most popular handset maker behind Nokia, has blamed the predicted losses on poor sales in Europe and Asia.
The fall in profits means it could now fall to third position in the mobile phone manufacturing league table, losing out to Samsung.
The results have prompted analysts to state that the future of Motorola's Chief Executive Ed Zander is looking increasingly troubled.
"With this type of performance and the bleak prospects facing the company for the rest of the year, I don't think Zander's tenure is going to go much further," Ed Snyder, Analyst with Charter Equity Research, said.
"He's toast. I think it's really close now."
Motorola is hoping to get back on track over the coming months with its new mobile phone handset - a follow-up to their popular Razr model - to be released later this year.
© 2008 Adfero Ltd
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