Credit Suisse is bullish on Motorola (MOT). It believes that the RAZR2 will do well and that the company could pick up market share beginning in Q4.
The call seems to carry a lot of risk. While Motorola may be in a position to drive better margins due to cost cuts, Samsung and Sony Ericsson have taken advantage of the US company’s weakness to introduce a number of new models and have driven up their market share.
And, Nokia (NOK) with 36% of the world handset market sold over 100 million handsets last year. It believes it can drive its share to 40% by a combination of marketing cheap phones in India and China and expensive multimedia phones in developed countries.
Motorola ain’t back yet, and a recovery could take a lot longer than a year.
Douglas A. McIntyre