Apple‘s (AAPL) iPad 2 Results in Motorola Mobility (MMI) Downgrade

The unveiling of Apple‘s (NASDAQ:AAPL) iPad 2 didn't take long to cause some ripples, as Motorola Mobility (NYSE:MMI) was quickly downgraded by C.L. King analyst Lawrence Harris.

Most of this centers on the weak performance of Motorola Mobility's Xoom tablet, which was released last week to lackluster sales, even though it was touted as a legitimate alternative to the iPad.

But the unusual commitment of Apple to offering the iPad at lower prices, along with its supply chain successfully churning out iPads to meet demand, has ended up pressuring MMI's shares and performance.

Harris noted that the iPad 2 comes close to meeting the abilities of Xoom. "The iPad 2’s features, which include a dual-core processor, front and back cameras and HDMI output, appear to match most of the high-end attributes of the Motorola XOOM,” he concluded.

MMI was closed Wednesday at $28.38, falling $1.12, or 3.80 percent. Harris lowered the company from a "Strong Buy" to a "Buy."