Android leader Motorola still well behind Apple's iPhone

JustinSaneV2

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Original poster
Jul 1, 2010
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Android leader Motorola still well behind Apple's iPhone

Motorola reported a phenomenal 600 percent leap in earnings this quarter, but is still behind Apple in mobile units sold and is far behind in smartphone sales, leaving Apple the top US phone vendor by units for the second quarter in a row.

Motorola has greatly increased is profits due to a its push with Verizon Wireless in selling the Android-based Droid, also marketed as the Motorola Milestone. The latest model, Droid X, is currently the model being held up against iPhone 4.

Motorola's quarterly sales of 8.3 million phones is still behind Apple's 8.4 million units in the second calendar quarter of 2010, which ended in June. However, only 2.7 million of Motorola's sales were smartphones, meaning Apple sold more than three times as many smartphones as the leading Android maker.

In comparison, Taiwan's HTC (the manufacturer of Google's Nexus One, Verizon's Droid Incredible and Sprint EVO) sold 2.8 million phones in the first quarter of 2010, or 3.5 million counting its OEM sales through other vendors. It expected to sell a total of 4.5 million in the second quarter.

Motorola unit sales plunge as iPhone ascends

Motorola has seen a sharp decline in the total number of phones it has shipped since the iPhone arrived in 2007. In the last three quarters of 2007, the company was selling more than 35-40 million devices per quarter.

In 2008, Motorola's shipments fell down into the range of 25 million per quarter, ending the year under 20 million. In 2009, the company's quarterly sales consistently slipped under 15 million. This year, the company hasn't reached 9 million in sales of all phones, with its smartphone sales being below 3 million.

In contrast, Apple has incrementally expanded its iPhone sales as it entered new markets internationally and began adding new carriers. The company's June quarter results were particularly impressive given the media attention devoted to the publicized iPhone 4 prototype, which Apple feared would result in depressed sales as customers anticipated the new model launch.

http://www.appleinsider.com/article...motorola_still_well_behind_apples_iphone.html
 

thatoneguy92088

macrumors member
Dec 30, 2009
39
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Isn't that kind of the end of the razr era where everyone and their brother wanted a razr? Regardless, Motorola makes crap ie my cablebox and my original original iPhone, the ROKR E1.
 
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Phi4sius

macrumors newbie
Jul 30, 2010
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And now the iPhone 4 is helping people realize how much the Android really sucks. :D :D :p :p
 
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samcraig

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Jun 22, 2009
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It's amusing to read all these threads. I find it amusing that people are either insecure or "something" that requires them to make sure they post anything negative about another company who makes handsets. As if it will make them feel superior for owning an iPhone or justify their ownership.

If you own an Apple computer - do you care that you're in the minority (except here)? Why is it ok to be in the minority there but you want to be in the majority with the iPhone?

The mind hurdles you have to go through is boggling LOL. It's as if it's being rationalized by "Ha - I own the best phone in the market and every phone is inferior" and then "Ha - I am in the minority who knows how much better the Mac is to the PC"

For everyone who thinks that way - I am sure there's someone who says "HA - I am in the minority of the people who know that an Android phone is the best and HA! I own the most popular computing platform on the planet"

yawn.
 
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TruckdriverSean

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Feb 28, 2009
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Wirelessly posted (Mozilla/5.0 (iPhone; U; CPU iPhone OS 4_0_1 like Mac OS X; en-us) AppleWebKit/532.9 (KHTML, like Gecko) Version/4.0.5 Mobile/8A306 Safari/6531.22.7)

Phi4sius said:
And now the iPhone 4 is helping people realize how much the Android really sucks. :D :D :p :p
I don't think this article supports the argument over which mobile OS is better, so much as it points out a fact that most people don't get when thinking about Apple.

Their REAL competition is with Dell, HP, Motorola, HTC, etc, NOT Microsoft, Google. Apple is a hardware company.

And to add onto what was posted about minority/majority market share, I think Apple and the iPhone will inevitably be in the "minority" (compared to Android which will be the "Windows" of mobile OS's) considering the parallel to Mac sales & current profits, I'm betting Apple Inc. will be just fine with that. After all, they "lost" the desktop OS battle, yet turned their "defeat" into one of the most profitable tech companies we've yet seen.
 
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Tarzanman

macrumors 65816
Jul 16, 2010
1,302
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Actually, the iPhone and music store are what bring in the cash for apple nowadays.

They will lose market share with the iPhone (it is inevitable with all the competition coming out), which is why they are looking for more revenue streams (iPads, more carriers for the iPhone).
 
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bhattsan

macrumors member
Jun 16, 2010
77
0
Isn't Android's strength in number of manufacturers? I'm sure HTC had great sales too (according to article 3-4 mil). This also doesn't include Samsung, etc. The one thing I don't like about my iPhone 4? All my (paid) apps are tied to this/apple's platform whereas with android phones you can jump to other phones/carriers without worrying about said fact. Hope competition forces all manufacturers to make great phones! :D
 
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maturola

macrumors 68040
Oct 29, 2007
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Atlanta, GA
I think the fact that a very obvious struggling company with a straight declining, got it almost flat for the last 3 quarters is actually pretty good.
 
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TruckdriverSean

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Tarzanman said:
Actually, the iPhone and music store are what bring in the cash for apple nowadays.

They will lose market share with the iPhone (it is inevitable with all the competition coming out), which is why they are looking for more revenue streams (iPads, more carriers for the iPhone).
I'll give you a half credit on the first part. While the iPhone (hardware) is extremely profitable for Apple, the profit from iTunes and the AppStore is minuscule in comparison. iAds may prove different, but that's hard to tell. And getting back to hardware, profit from iMacs and iPads is very nice indeed.

As for marketshare, let's think about that for a moment. What's Apple's marketshare now? 70%? 80%? Nope. It's more like 28% according to a recent (June 2010) poll. And that's US smartphone owners only. Worldwide, their marketshare would be far less.

And yet, PROFITABLE they remain.

So I don't think it's a question of Apple being a majority market company. They're never going to get past 1/3rd of the market, and I don't see Apple Inc. getting bothered over that fact, as long as "that" 1/5th or 1/3rd, remains the most profitable 1/5th or 1/3rd.

Hardware company. Profitshare before marketshare.
 
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Tarzanman

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Jul 16, 2010
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I'll give you a half credit on the first part. While the iPhone (hardware) is extremely profitable for Apple, the profit from iTunes and the AppStore is minuscule in comparison. iAds may prove different, but that's hard to tell. And getting back to hardware, profit from iMacs and iPads is very nice indeed.

As for marketshare, let's think about that for a moment. What's Apple's marketshare now? 70%? 80%? Nope. It's more like 28% according to a recent (June 2010) poll. And that's US smartphone owners only. Worldwide, their marketshare would be far less.

And yet, PROFITABLE they remain.

So I don't think it's a question of Apple being a majority market company. They're never going to get past 1/3rd of the market, and I don't see Apple Inc. getting bothered over that fact, as long as "that" 1/5th or 1/3rd, remains the most profitable 1/5th or 1/3rd.

Hardware company. Profitshare before marketshare.

What's your point? No one was talking about profit until you brought it up. Plenty of companies turn good profits without having the lion's share of the market.

Maybe you're offended that I said that the iPhone is going to start losing market share to their competitors?

That's life. The only possible way to stop it is to get the iPhone onto other carriers.

Cry some more
 
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Starrbuck

macrumors regular
Jun 8, 2010
168
1
So, in spite of all the different Android models and all the different carriers they are available on, Apple still sells more iPhones. 'Nuff said!
 
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Starrbuck

macrumors regular
Jun 8, 2010
168
1
This thread is about Motorola. I said all the different Android models, meaning all the different ones from Motorola. Please don't read something in to what I wrote that is not there.
 
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kenypowa

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Oct 16, 2008
694
20
somewhere
Isn't Android's strength in number of manufacturers? I'm sure HTC had great sales too (according to article 3-4 mil). This also doesn't include Samsung, etc. The one thing I don't like about my iPhone 4? All my (paid) apps are tied to this/apple's platform whereas with android phones you can jump to other phones/carriers without worrying about said fact. Hope competition forces all manufacturers to make great phones! :D
HTC sold 5.4 million phones in Q2, 2010, that's up from 2.4M in Q2 2009. That's growth of 125% in just one year. So the real leader of Android is HTC :D
 
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TruckdriverSean

macrumors 6502a
Feb 28, 2009
662
4
Texas, US
What's your point? No one was talking about profit until you brought it up. Plenty of companies turn good profits without having the lion's share of the market.

Maybe you're offended that I said that the iPhone is going to start losing market share to their competitors?

That's life. The only possible way to stop it is to get the iPhone onto other carriers.

Cry some more
Well, let me clarify.

For a great many people, the iPhone vs. Android discussion centers on the idea of one product reaching a super majority marketshare and "winning" the race. My point is that "winning" in the mobile OS space is not quite so simple.

I mention profitability (or as you put it in your earlier post, "bringing in the cash") as an area people give little thought to, yet ultimately determines whether a company will be around to compete with their OS at all. And getting back to where I began earlier, people really don't understand why Apple has been successful in the past, and tend to extend that misunderstanding to the current iPhone vs. TheWorld discussions.

Cutting to the chase, I believe that smartphones compete with each other on a much more individual basis than people realize, (iPhone vs. Droid X, Galaxy-S vs. Evo 4G, ) rather than as "Android" vs. iPhone This leads people (IMHO) to make incorrect assumptions, whether they are "for" or "against" Apple, Android, Microsoft or whoever.
 
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Rodimus Prime

macrumors G4
Oct 9, 2006
10,136
4
I have to say the graph and the article are VERY VERY misleading. Motorola has seems to back out of the 'dumb phone' market and more focus on the smart phone market.
That is going to really hammer the sells of total number of units if they stop selling the junk phones so to speak. Nokia still leads in the throw away market.

Moto used to offer several dumb phones per carrier and now they are lucky if they offer one. They have seem to focus on smart phones only and smart phones is is a much MUCH smaller market than the 'dumb phone' market.

They started pulling out in 2007 so yeah it took a noise dive.
 
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AZREOSpecialist

macrumors 68020
Mar 15, 2009
2,146
1,038
Well, let me clarify.

For a great many people, the iPhone vs. Android discussion centers on the idea of one product reaching a super majority marketshare and "winning" the race. My point is that "winning" in the mobile OS space is not quite so simple.

I mention profitability (or as you put it in your earlier post, "bringing in the cash") as an area people give little thought to, yet ultimately determines whether a company will be around to compete with their OS at all. And getting back to where I began earlier, people really don't understand why Apple has been successful in the past, and tend to extend that misunderstanding to the current iPhone vs. TheWorld discussions.

Cutting to the chase, I believe that smartphones compete with each other on a much more individual basis than people realize, (iPhone vs. Droid X, Galaxy-S vs. Evo 4G, ) rather than as "Android" vs. iPhone This leads people (IMHO) to make incorrect assumptions, whether they are "for" or "against" Apple, Android, Microsoft or whoever.
Market share will ultimately trump profitability, all things being equal. Many people, including myself, equate iOS vs. Android to the old Microsoft vs. Apple rivalry. However there is one major difference. Google isn't charging OEMs for its operating system. Google is hoping to make money on the ad revenue. The only way for Google not to become marginalized in this battle is to generate a lot of ad revenue. In order to do so, it needs as much market share as possible. Hence Google's strategy of putting Android on as many smartphones as possible.

At some point, higher profitability and lower unit sales will not be able to sustain an onslaught from lower profitability and higher unit sales. Developers will develop for the platform with the largest market share, which in turn will bring in more advertising revenue. Market share is everything here.

The problem with Apple is that they can't make enough iPhones. And this is for a single carrier! Imagine Apple selling iPhones on Verizon, T-Mobile and Sprint? Apple would need to triple its production volume or put people on a 6 month waiting list.
 
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