I have been watching Motorola’s Home (including STBs) business over the last year or so and been noticing that it has been steadily losing market share across the board. It just seemed to be suffering from malaise and not able to put together compelling story to stem the slide. When Google acquisition was announced, my first reaction was that the uncertainty internally and externally would hurt sales, in the short term for the very least and possibly long term.
Not surprisingly, this has happened. This afternoon they issued a press release announcing an earnings miss. In this PR, they mentioned that the Home business unit will take in $900M in revenue for Q4 2011. While this is up sequentially from $825M in Q3, it is down 10% from the same quarter last year. Q4 is traditionally an up quarter Motorola and most vendors due to end of year budget spending, so a 10% decline is pretty hefty. When we run the market size and share numbers next month, I expect to see market share further erode and would not be surprised if Motorola is knocked out of first place in cable STBs, their strongest market segment. Stay tuned.
David Dines
ddines@acgresearch.net
www.acgresearch.net
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