Supply Woes Hurt Motorola Sales - TheStreet

Supply Woes Hurt Motorola Sales

The company says parts for its new camera phones are in short supply.
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is getting a costly lesson in supply and demand -- at the worst time of year.

One week into the holiday shopping season, the wireless communications company Thursday said it is having trouble getting enough components from suppliers for its new group of camera phones.

Motorola said its phones were selling well, but admitted "unit volumes are lower than our customers are asking for, due to supply constraints for the integrated-camera components."

The Schaumburg Ill.-based company added, "the supply constraint for integrated-camera components is an industry-wide problem."

Motorola began shipping 18 new models, eight featuring integrated cameras, in the fourth quarter.

The company is the last of the major manufacturers to roll out a version of the extremely popular camera phones and has already suffered delays in shipping its latest models to catch the peak sales season.

Motorola shares were down 19 cents, or 1.4%, to $13.48.