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News Burst: Motorola warns on mobile sale and shares plummet

Graeme Wearden ZDNet.co.uk

Published: 12 Oct 2000 09:35 BST

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Mobile phone sales will slow down according to the world's second largest mobile manufacturer Motorola which saw its shares drop 15 percent following the announcement.

Motorola warned Wednesday that a decline in demand, especially in Europe, will hit its revenues in 2000 and 2001.

The company forecast that worldwide sales of mobile phones will reach 410 to 425 million this year, less than its earlier prediction of 425 to 450 million. It blames high penetration rates in some European and Asian countries, but insists that overall demand for mobiles remains healthy.

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