I don't think earnings will be terrible, probably in-line. Remember tablets are still very marginal to the business. Main drivers are more smartphones for profit and set-top boxes for cash flow. And don't forget about China, which is MMI's 2nd biggest smartphone market after U.S. And even if less phones are sold overall, if more SMARTPHONES are sold that translates to more profit. Funny enough, I'm actually worried about MMI's stable business of set-top boxes, since consumer electronic sales outside of smartphones/tablets have been very disappointing and less tv's sold means less set top boxes.
I own 40,000 shares and have shorted 10,000 share increments since $32 a share. Word from inside MMI is that employees think Jha is a disaster, and when the rank and file think the CEO is no good, the Street usually punishes the stock. When earnings are posted, I expect MMI will drop to the mid-teens. Hence my rather large short position.