Motorola just cannot ride on the back of the Razr phone anymore and I think Motorola finally realized that. That is why they canceled a lot of high end orders with DAAMIT, as it simply could not sell that many Razr handsets and other similar high end phones.
This resulted in a decrease in orders by as much as 50 per cent and the AMD consumer division which is responsible for mobile chip sales is going to have much lower profits than it expected.
The trouble of the digital consumer division business is that every nine months you either win or lose out on new designs and if your primary customer is weak, you get weak sales as well.
We already wrote that Motorola predicts Q2 losses and its most popular Razr phone as well as the V3i have ATI chips inside. So when Motorola phone sales are down, AMD mobile phones chip sales bleed as well.
Motorola predicts Q2 loss