6/12/2006 4:37:00 PM
Price drops hit Motorola
Prices on Motorola handsets have tumbled by as much 42% since February on the PEBL and SLVR handsets.
The price drop is the result of a combination of unexpectedly low consumer demand for both handsets, and over-ordering by distributors.
Distributors claimed Motorola had only delivered a fraction of the orders requested prior to February.
'Demand normally outstrips supply when new handsets come out and stock is on allocation, so everyone plays the allocation game of massively ordering to get close to the actual requirement,' said one distributor, adding: 'Then in February, bang - we all got 100% of our orders.'
As demand for the PEBL and SLVR shows no sign of improving, distributors holding the stock have attempted to cut their losses and sell the stock, contributing to the fall in prices.