The initial quarter of the fiscal year 2007 shows a slowdown in shipment sale as 252 million handsets were shipped in the first three months. That's a 12 percent overall increase, but analysts say that the figures are significantly below expectations.

The trend in the past few years has been a 20 percent increase in sales per annum. This year saw a slowdown in Q1 because of Motorola's decision to hold back on shipments. It flogged 45.2 million units worldwide, which is a 1.5 decrease compared to last year's first period covering January to March.

Other mobile giants, however, have kept the uptrend alive. Market leader Nokia has shipped a total of 91.1 million units shipped, jacking up a 21 percent total increase.

Motorola, however, said that it plans to capitalize on growing markets in the two most populous nations in the world: India and China. The company said that the two markets may account to about 60 percent of the total new phones sold this year.