Xoom does better than expected

Motorola said it shipped 250,000 Xoom tablets in the first quarter

Motorola Mobility shipped 250,000 Xoom tablets in the first month the device was available, the company said on Thursday as part of its first-quarter earnings report.

The tablet, the first to run Google's Android Honeycomb OS, went on sale in late February. Within weeks, several analysts said early sales were disappointing. In early April, one analyst estimated that Motorola had sold a total of 100,000 of the tablets.

Computerworld: Which tablet should I buy? Motorola Xoom vs Samsung Galaxy Tab 10.1v

Shipping a quarter of a million in a month isn't quite the same as initial iPad shipments, but the number appears to be better than many had expected.

For the full year, Motorola is expecting to sell 1.5 million to 2 million tablets, it said. It plans to introduce new tablets, including some with new form factors, this year, executives said during a conference call to discuss first-quarter results.

During the quarter, Motorola Mobility also started selling the Atrix, a phone that can be docked into a device with a full keyboard and monitor. Some analysts have also said sales of the Atrix are weak.

The company did not pull out Atrix sales numbers. It said it shipped 9.3 million mobile devices, including 4.1 million smartphones, during the quarter.

Motorola expects to record an operating profit for the full year, but faces challenges ahead. It has delayed the launch of the Bionic, its first LTE device, and on Thursday said the delay is related to a software problem. That same problem is also pushing back the launch of LTE on the Xoom, which was initially expected for the first half. Both the LTE Xoom and the Bionic are now expected to come in "summer," which in North America could be as late as September.

"There's a great deal of complexity in launching any new technology like this," Sanjay Jha, chairman and CEO of Motorola Mobility, explained.

Still, the delays put Motorola at a disadvantage compared to its competitors including HTC, which is already selling an LTE smartphone, and LG, which is soon to launch an LTE phone with Verizon.

Motorola reported a loss of $0.27 per share on net revenue of $3.0 billion for the quarter. The loss is better than the $0.72 per share it lost in the first quarter this year. Net revenue was up 22 per cent from the first quarter of 2010. Analysts polled by Thomson Financial had given an average forecast of $2.84 billion in revenue. Excluding certain items, Motorola Mobility reported a loss of $0.08 per share, beating the analysts' forecast of a $0.12 loss per share.

The company expected a challenging first quarter, in part due to new competition at Verizon from the iPhone. The Droid franchise at Verizon has been a big driver of sales for Motorola.

Motorola expects to be able to grow sales by branching out into new markets with products like the Xoom and Atrix, and also by establishing a solid foothold in enterprises. "We have invested more in making sure we have the security, mobile device management and integration of services and apps ... than I believe anyone else in the Android ecosystem," Jha said. "There is a very large focus both organizationally and in terms of features of our devices to make sure we address the enterprise marketplace."

The company bought 3LM, a mobile device management company, during the quarter. Also, it plans to add new productivity features to its webtop application, which allows the Atrix to pair with a dock, and plans to introduce additional devices that use webtop.

Several Fortune 500 companies are running trials with Motorola Android enterprise products and services, Jha said.

Motorola Mobility, which separated from its parent company in early January, has two groups: Mobile Devices, which makes phones, and Home, which makes set-top boxes and other IPTV equipment. Spinning off the mobility division was part of the company's strategy to turn around lagging results.

Nancy Gohring covers mobile phones and cloud computing for The IDG News Service. Follow Nancy on Twitter at @idgnancy. Nancy's e-mail address is Nancy_Gohring@idg.com

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags business issuesfinancial resultshardware systemstablet PCslaptopsMotorola Mobility

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Nancy Gohring

IDG News Service
Show Comments

Brand Post

PC World Evaluation Team Review - MSI GT75 TITAN

"I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it."

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Laura Johnston

MSI GS65 Stealth Thin

If you can afford the price tag, it is well worth the money. It out performs any other laptop I have tried for gaming, and the transportable design and incredible display also make it ideal for work.

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?