Monday, July 17, 2006

Motorola's Q Phone Has Solid Start, But Challenges Remain picks up a Dow Jones article which reports that "since coming on the market in June, Motorola's (MOT) much-hyped Q smartphone has sold at a steady pace. Now the question is whether the company can meet the aggressive sales target it set for its first six months."

According to the article, the "company expects to ship 1.5 million units in the first 180 days, though Motorola has shown signs it could deliver two million units. Motorola's handset shipments could top 50 million in the second quarter."

The article notes the Q's "attractive price and stylish design" are helping to "entice a steady stream of customers, primarily consumers and office workers."

Susan Kalla at Caris & Co. pointed out that "she was told that young people were particularly attracted to the Q. Seniors without a personal computer at home also showed interest in the device as a way to get Internet access."

James Faucette at Pacific Crest countered that "the retailers he has polled say "wide appeal has been limited" for the Q, though the device has sold "reasonably well" for a new smartphone on the market."

Albert Lin at American Technology Research opined that "Motorola can meet its initial six-month goal, but he expects sales to taper off in the long run unless the company makes big improvements to the Q." Lin said, "People new to smartphones find the form factor appealing. I think it's OK for the consumer," adding that "the BlackBerry and other devices remain superior for heavy business users."