Motorola announced result last night, as I said they have pre-amp their result 2 weeks early, and their result is of course in-line with their correction. However, with the ugly balance sheet, it climbed 3% last night:

http://www.forbes.com/2007/01/19/motorola-layoffs-earnings-markets-equity-cx_jl_0119markets06.html?partner=yahootix

Traders aggressively bought up shares despite Motorola’s disappointing fourth-quarter results. The cell phone maker said on Friday that it earned $624 million, or 25 cents per share, compared to $1.2 billion, or 47 cents per share from a similar period last year. Sales climbed 17% to $11.8 billion.

Well, though it’s not the fact that bad result would have stock price, however, they do it once again. Motorola knew their result was bad, and they have planned to tell the investors that they will cut 3,500 jobs (>5% of its 67,000 total). Traders accepted it merrily.

Hmm… you can see, they are not saying what product they will have in the future, or what mission they want to achieve… It’s the old Motorola coming back again. 

I like the CEO of Motorola (Ed Zander) few years ago, his inspiration of Razr and itune phone helped Motorola recovered from bottom. However, when LG is going to sell Prada branded iPhone hype device, they are still selling cheaper and cheaper Razr for the 3^rd years. Nokia will put a full stop on it after they launch the even thinner Nokia Razr N67.

Well, because of Chinese and Indian markets, Average Selling Price (ASP) of phone is dropping, that hurts Nokia 3 months ago even their market share was increased to 36%. A cheaper phone means a cheaper chip to make the phone? This is something we can find out on next Monday’s result from Texas Instrument which is the main provider for Nokia mobile chips. 

Eric