Verizon accounted for 28% of Motorola's sales before the launch of Big Red's Apple iPhone 4
The reason for bringing up this statistic is to show the possible risk to Android manufacturers from the Verizon branded Apple iPhone 4. And Motorola was the company that produced the original DROID which ushered in the era of Androidmania with television commercials highlighting the things that the iPhone could not do, but that "DROID Does".
And to highlight how much Verizon revenue means to Motorola Mobility, in a regulatory filing the company wrote that a loss of revenue from the carrier, "could have a negative impact on our business." And that brings us back to sales of Verizon's version of Apple's touchscreen device. A report from Piper Jaffray analyst Gene Munster estimating that 20% of world wide Android sales come from Big Red would seem to confirm that the decision by Apple to bring the iPhone to Verizon was done to put a dent into Android's rapid growth.
We have reported that iPhone sales at Verizon have been below expectations although the same story noted that 30% of the carrier's iPhone buyers were Android users. Bloomberg's story contained the opposite reaction from Verizon and said that the mobile operator was happy with the initial wave of Apple iPhone sales. We will have to wait for more precise numbers to be released to determine what has been happening with Android sales at Verizon since the launch of the iPhone.
1. remixfa posted on 19 Feb 2011, 09:15 5 1
20% of 100% is 20. 30% of that is 6. so 6% of android users went to an iphone. its NOT THAT MUCH. a higher % of iphone users have jumped to android, and android's growth in the last year was leaps and bounds ahead of everyone else combined.
thats like saying "wow, jeff gordon has lapped everyone twice.. but wait someone has caught up by 1/10th of a mile!! Its gonna be a close race!!"
14. clevername posted on 19 Feb 2011, 21:01 1 0
That's a tad out of context. Though your math is 100% correct the 500 pound gorilla in the room is the fact that apple took 6% of the WORLD's android user base in only 17 hours and 10 minutes. If that number dropped to one 12th of that and remained consistent for 2 weeks that would be another 10%. That's 16% in 2 weeks. Not counting the week between original preorders and actual launch. Cut that number and say the iPhone grows slowly at 25% growth of the original 6% of users (which would be very slow for an iPhone) that went to android and in another month (4weeks) you have 20% of the worlds android users using an iPhone by the end of the first full calendar month (also the end of the fiscal quarter) of verizon iphone sales. Not to mention the number of android Users that go to the iPhone from other carriers around the world.
Now this is all assuming 12% growth in the first 2 weeks of regular sales and 3% growth in the 4 weeks following that. Those are very small numbers there but I was giving the benefit of the doubt to android.
Not saying iPhone is taking over. Just putting into context how big 6% actually is. You cant look at the 6% and think it'll remain at 6%. Remember that it was 6% in just 17 hours and 10 minutes of pre-sales. The number will grow, That's business. And in actuality these numbers are probably larger that 12 and 3. Much larger.
Just wanted to give you an analysts point of view.
20. sno_rider01 (unregistered) posted on 20 Feb 2011, 20:14 0 0
Actually that number is off of an initial surge, there is no guarantee that Apple will maintain that pace, it could just be initial pent up demand, and could potentially taper down from there. Only time will tell how it will trend, I'm hoping Android keeps up the momentum, I despise Apples "control" issues and like the openness of the Android platform.
21. BaiGanyo posted on 21 Feb 2011, 16:01 0 0
Wow, the few million Iphones sold on Verizon decreased Android users worldwide by 6%? No reasonable person is stupid enough to actually think that is accurate unless they haven't read tech news for over 2 years. That makes no sense and all the percentages you can spout off don't mean anything. It's not true. It's not even close to true. It's so far from true its pointless to even debate. Learn to read and do math please.
2. JeffdaBeat posted on 19 Feb 2011, 09:21 2 1
Yeah, I think it's a bit early to think about the impact of Android sales on Verizon when the iPhone hasn't really been out that long. Maybe at the end of the year it will be a bit more interesting. For now, it's all speculation...
7. VZW Rep (unregistered) posted on 19 Feb 2011, 14:02 1 1
I will never understand the fanboyism on this website, it's ridiculous.
That's about as reasonable a comment I think someone could make...why would someone give that a thumbs down? Are you all that biased toward one damn phone that anytime someone says something you don't like you have to defend it? Seriously, go outside and play or something.
Jeff, this wasn't directed at you obviously. I just had to comment on how much trolling goes on at Phonearena.
15. Droid_X_Doug posted on 19 Feb 2011, 22:22 1 1
Interesting how it seems that Android sales gains were what broke through the 'blockage' and got Apple to be open to the concept of the iPhone on VZW....
3. snowgator posted on 19 Feb 2011, 12:40 3 0
Regardless of what Android backers feel, neither Google or Motorola can be happy. They do not get the Verizon sandbox, the biggest in the playground, all to themselves for the premium mobile market anymore. Apple already has the most profitable product on the market with unbeatable name recognition. Even if it is only 6-10% of existing sales belonging to other Verizon phones by end of the year, that is easily a win, seeing how they had zero% last year.
4. Ski (unregistered) posted on 19 Feb 2011, 12:59 1 1
I think this may be in part to due to the handicapping of Verizon's advertising for the HTC thunderbolt. As the first 4G LTE phone, its a big deal. And with it coming out possibly this week, we haven't seen a lot of advertising, at least not till the last 2 days.
5. deezy posted on 19 Feb 2011, 13:06 1 0
It's not the iphone that's gonna impact Verizon's Motorola numbers...it's LG and Samsung that's cashing in...they have the 4G phone to compete PLUS they still are coming out with the Feature Phones that interest the non Smartphone users.
6. snowgator posted on 19 Feb 2011, 13:49 0 0
iPhone won't impact Motorola - but FEATURE phones will? That's .... a different thought. As a reformed feature phone user, allow me to say that I do not think the Droid or Droid X have a ton to be threatened by the LG Octane. And non-smart phone users are strong in the basic, flip style phone so they do not have to pay any required data charges. I have a lot of friends in that group, and they think I am nuts for paying so much for what I have got (which is by no means considered high end). No, pretty sure Motorola isn't worried about the slowly dying, over priced feature phone market that doesn't even have an advertising campaign.
8. Sniggly posted on 19 Feb 2011, 15:30 1 0
Snowgator, LG and Samsung both sell more entry level (read: cheaper) Android phones on Big Red. I think that's what he's referring to.
Regardless, I still hope Motorola continues to pull ahead. They make quality high end smartphones now, and it'd be a shame to see them die just as they were pulling themselves away from death's door.
10. snowgator posted on 19 Feb 2011, 19:51 2 0
rereading his comment, I do believe you are right, and I misunderstood. deezy was was saying they have the feature phone market ON TOP of the android sales. Deezy was also saying that LG and Samsung have 4G, and iPhone does not., My absolute bad. ( is rereading even a freaking word? or do I get points for creative English?)
18. deezy posted on 20 Feb 2011, 19:43 0 0
yeah I was stating that they have had the entry level smart phones plus their upper level phones coming out are very similar to the bionic and thunderbolt...and we still get tons of people in our store that won't switch to smartphone and love the intensity 2 or octane...
19. deezy posted on 20 Feb 2011, 19:46 0 0
and after me "rereading" the article lol, I realized that it's talking about Verizon being responsible for 28% of Motorola's sales, not the other way around...either way, it applies to my first comment...
9. trin posted on 19 Feb 2011, 16:22 0 0
1. Sales of the iphone on verizon has been steady, to the point that stores are routinely running out of stock. Good thing is they're being rapidly replenished...for now. So the whole poor sales story is getting old.
2. The Bionic vs iphone 5 will be the true test.
22. BaiGanyo posted on 21 Feb 2011, 16:07 0 0
Running out of stock lol. Sending less than are needed is the oldest trick in the book. It only means the hucksters in charge want to make them seem in short supply because it generates interest. No matter how many are being sold, they will always try send just fewer than that.
11. myclevername posted on 19 Feb 2011, 20:02 0 0
I think the point this article is trying to make is that Motorola is too heavily dependent on Android. Now everyone can and is making some nice Android phones. And only Apple can make an iPhone. And Motorola has no other OS they support now. So if their head start in the Verizon Android world starts to get eaten up by other Android phones from Samsung, LG, and HTC and now the iPhone is taking away Android customers as well then they are going be in trouble again very quickly.
12. downphoenix posted on 19 Feb 2011, 20:30 0 0
Cant say I feel very sorry for Motorola. They have opted to side almost exclusively with Verizon, releasing their best phones only on Verizon, giving AT&T and T-Mobile vastly inferior phones (with the exception of the upcoming Atrix, which perhaps is a sign of the changes since Motorola realizes FINALLY they cant just go with Verizon for their high end phones) and have not released a phone for Sprint since 2008 if you dont count Nextel devices. Maybe Motorola will take Verizon getting the Iphone as a valuable lesson and stop siding with specific carriers and instead support all of the major carriers, as that is the most profitable route they can take as well as the route that will ensure the smallest likelihood of turning into another Nokia in the future.
13. clevername posted on 19 Feb 2011, 20:38 0 0
I can't see moto getting into trouble in the same way they were or that palm did. Difference from then to now is they now make solid products. They have a good rep with customers and even though their market share on verizon will drop (a new major competitor-iPhone- will drop everyones market share on VZ no matter how little) they still sell more android phones than any other OEM on VZW. Sammie and Lg both have fewer models combined and adding 1 HTC and 1 Sony ericsson model won't change that. Will they stay top dog at big red? Who knows. But I doubt they will return to the financial catastrophe that they were eyeballing before the DROID.
Btw @myclevername have we met?
16. myclevername posted on 20 Feb 2011, 14:18 0 0
The rise of Motorola on Verizon has come from 2 things...no iPhone on Verizon and not many other Android devices on Verizon. Now Motorola has pissed off every other carrier, has the iPhone to compete with on ATT and Verizon and HTC and Samsung are making some kick ass Android phones for all 4 carriers.
Verizon used Motorola and Android brilliantly to attack ATT and the iPhone. Now you won't be seeing any anti iPhone adds from Verizon. So Motorola has to fight for themselves again and not just against Apple. so Motorola just got a whole lot weaker and Verizon doesn't need to use them anymore as their iPhone attack dog.
All Motorola has now is Android and not much else. And THAT, boys and girls, is the lesson to be learned. Android is not going to save Motorola twice.
17. MorePhonesThanNeeded (unregistered) posted on 20 Feb 2011, 17:55 0 0
What are you people babbling about? Motorola and Verizon's marriage the past few years was simply down to Verizon wanting something to combat At&t/iPhone team up. Verizon and Motorola put their heads together and then Verizon got the Droid tm and added google and we had the birth of the thorn in Apples side the original Droid. Motorola brought their biggest and best to Verizon exclusively, for obvious reasons. Largest network, most people to get connected with and a fresh start, and with Verizon's marketing it paid off big time.
Would it have made sense for motorola to bring out powerhouses like the A855(Droid) on At&t, while the iPhone was there? Use your brain and think about things, the other carriers weren't on the tip of people's tongues like Verizon was and practically still is. A betting man would have done exactly what Motorola did, made the most sense.
Those were good numbers Motorola posted being part of Verizon with the Droids, not sure why this makes for a story as if no one wouldn't know that when iPhone comes to a carrier, everyone is going to feel the sting of lower sales. Oh well, now Motorola can bring powerhouses to other carriers and will continue to ride the Droid wave until it wanes.
23. BaiGanyo posted on 21 Feb 2011, 16:09 0 0
If Motorola continues to only make american phones, they will always remain an american company and be suspect to rivals like apple, or whoever else comes along. You can't put all your eggs in one small market and expect to be successful.