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Apple jumps past Motorola to become biggest US phone maker

post #1 of 70
Thread Starter 
Motorola announced sales of 8.5 million phones in its spring quarter, dropping it below Apple's record sales of 8.8 million iPhones and vaulting the Mac maker into position as America's top phone manufacturer.

Motorola sold 14.7 million phones in the year ago quarter, but this year its earnings were only down by 9%, due the fact that the company is now successfully working to sell more sophisticated smartphones rather than large numbers of cheap phones, according to a report published by Forbes.

Profits are actually up significantly, with the company reporting a modest $69 million this quarter as opposed to the $231 million it lost in the year ago quarter where it sold 70% more phones.

Four years ago, the company was selling 46.1 million phones per quarter thanks to the popular Razr model. However, with mobile providers pushing the company to deliver increasingly cheap phones, Motorola's profitability has taken a beating.

The company has since worked to focus on higher end smartphones like the Android-based Milestone, sold by Verizon as the Droid. Despite lots of optimism for Android, Motorola only sold 2.3 million smartphones out of the 8.5 million phones it sold in the quarter, compared against Apple's all-smartphone sales of 8.8 million iPhones (and additional millions of iPod touch devices).

Without considering iPod touch sales, Apple sold 3.8 times as many iPhones as the Motorola Droid in the first quarter.

Motorola's Milestone/Droid was the star model of Verizon's Android lineup this quarter, and was heavily promoted as being both exclusive to Verizon in the US and one of the best Android phones available.
post #2 of 70
That's "Motorola" not "Microsoft."
post #3 of 70
Quote:
Originally Posted by tomhenning View Post

That's "Motorola" not "Microsoft."

Haha what kind of typo is that? That pretty bad....

Where does Nokia stand in all of this?
post #4 of 70
here's another example of a mismanaged company. Like GM it had Market share most companies can only dream of and it squandered it through inept management!

What was the phone before the RAZR? V60 or something...I remember admiring how small and high tech it looked. And the model before that Michael Douglas used in 'A perfect Murder' My wife had one of those for years!

Sad, sad!
post #5 of 70
Quote:
Originally Posted by Rokrad View Post

Haha what kind of typo is that? That pretty bad....

Where does Nokia stand in all of this?

Finland?
post #6 of 70
Quote:
Originally Posted by Rokrad View Post

Haha what kind of typo is that? That pretty bad....

Where does Nokia stand in all of this?

Nowhere? Because this was a comparison of US mobile phone makers. Nokia is based in Finland.
post #7 of 70
Quote:
Originally Posted by quinney View Post

Finland?

post #8 of 70
Illustrates the illusion of gunning for nothing but market share. Motorola is doing better this year than last, despite selling almost half as many phones.

It's clearly looking to follow Apple into the game of selling more premium devices and scaling back on the huge volumes of profitless commodity devices.
post #9 of 70
I might normally say, "Yay Apple," but Moto has been tanking for years. Can't believe it took this long for someone to do it.
post #10 of 70
Apple is DOOMED.
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post #11 of 70
I seem to remember a certain CEO named "Ballmer" that said the iPhone was too expensive and could never take on the traditional cell phone makers ... hmmmmmm
post #12 of 70
Good for Moto for being smart and making money this quarter. Let's keep it up!

I have to assume that Apple has increased its lead as the most profitable handset maker in the world.
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post #13 of 70
Quote:
Originally Posted by jragosta View Post

Apple is DOOMED.

It's trademarked, sir. (Fixed it for you).
post #14 of 70
What is unbelievable is that they've done this selling one model of phone (OK, OK, two colors and two sizes) at $600 a pop.

Is anybody taking notes in the industry?

Hello? Anybody home?
post #15 of 70
Quote:
Originally Posted by christopher126 View Post

here's another example of a mismanaged company. Like GM it had Market share most companies can only dream of and it squandered it through inept management!

What was the phone before the RAZR? V60 or something...I remember admiring how small and high tech it looked. And the model before that Michael Douglas used in 'A perfect Murder' My wife had one of those for years!

Sad, sad!

StarTac
post #16 of 70
Quote:
Originally Posted by anantksundaram View Post

What is unbelievable is that they've done this selling one model of phone (OK, OK, two colors and two sizes) at $600 a pop.

Is anybody taking notes in the industry?

Hello? Anybody home?

Right?!

If you like your Droid or Nexus or Pre... thank Apple!
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post #17 of 70
Quote:
Originally Posted by solipsism View Post

Right?!

If you like your Droid or Nexus or Pre... thank Apple!

Nexus is already mutating, and Pre already did and failed. Give Droid another six months. You'll see five different versions, I am sure.
post #18 of 70
Quote:
Originally Posted by Glockpop View Post

Illustrates the illusion of gunning for nothing but market share. Motorola is doing better this year than last, despite selling almost half as many phones.

It's clearly looking to follow Apple into the game of selling more premium devices and scaling back on the huge volumes of profitless commodity devices.

bingo

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post #19 of 70
Quote:
Originally Posted by anantksundaram View Post

What is unbelievable is that they've done this selling one model of phone (OK, OK, two colors and two sizes) at $600 a pop.

Is anybody taking notes in the industry?

Hello? Anybody home?

Very few other companies could be successful with the same model. They don't have the same panache and they don't have Jobs. Without the hardcore, long time Apple fans and the more nouveau fans that came on board with the iPod, you wouldn't have the base to build and sustain from. Other companies have customers. Apple has fan, followers and devotees (and the cultists, never forget the power of the cultists).

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post #20 of 70
Quote:
Originally Posted by sprockkets View Post

StarTac

Right! Thanks, boy does that bring back memories!
post #21 of 70
Apple's phones are made in China, not the US. Just sayin'...

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post #22 of 70
Quote:
Originally Posted by anantksundaram View Post

What is unbelievable is that they've done this selling one model of phone (OK, OK, two colors and two sizes) at $600 a pop.

Is anybody taking notes in the industry?

Hello? Anybody home?

Yep, there was an article in the WSJ earlier this week where Dell's consumer division was going to start concentrating on more premium products ergo 'margin' than chasing market share!

And HP buying Palm...or more like buying the $650 million investment Palm made in developing the WEBos. Which is an obvious move to distance themselves from MS's clumsy mobile OS.

Tech companies are finally coming around to have true success you have to control the SW and hardware....errrr like Apple!
post #23 of 70
Quote:
Originally Posted by anantksundaram View Post

It's trademarked, sir. (Fixed it for you).

post #24 of 70
Quote:
Originally Posted by Tulkas View Post

Very few other companies could be successful with the same model. They don't have the same panache and they don't have Jobs. Without the hardcore, long time Apple fans and the more nouveau fans that came on board with the iPod, you wouldn't have the base to build and sustain from. Other companies have customers. Apple has fan, followers and devotees (and the cultists, never forget the power of the cultists).

I disagree with your entire statement. Motorola has shown that it can be profitable by focusing their efforts on the high-end with the Droid. They did this with Jobs at the helm and without an Apple logo.

If you look at Apple's growth you see that it's not from Apple's "fans, followers, devotees and cultists" unless you are suggesting that they are exponentially buying new Apple products. Apple certainly creates a lot of fans but they are created, not a default from some time before Jobs returned where Mac sales in a year was less than Apple sells in a quarter.
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post #25 of 70
How many phones did Research in Motion sell?
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post #26 of 70
Quote:
Originally Posted by pazimzadeh View Post

How many phones did Research in Motion sell?

RiM sold 10.5M in their last quarter. However, their quarter is atypical, going from December through February. We'll have to way until late June to see March through May.

Also, RiM sold the most smartphones in the US for calendar year 2009. I have doubts that will be the same for calendar year 2010.
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post #27 of 70
Quote:
Originally Posted by Rokrad View Post

Haha what kind of typo is that? That pretty bad....

Where does Nokia stand in all of this?

First:



Pardon my typo Microsoft, I mean Motorola.

Second:

Nokia stands in Finland, whereas Apple and Motorola stand in the U.S.
post #28 of 70
Quote:
Originally Posted by mdriftmeyer View Post

Nokia stands in Finland, whereas Apple and Motorola stand in the U.S.

Are there any stats showing the iPhone's sales in Finland?
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post #29 of 70
Quote:
Originally Posted by anantksundaram View Post

Give Droid another six months. You'll see five different versions, I am sure.


post #30 of 70
Quote:
Originally Posted by solipsism View Post

I disagree with your entire statement. Motorola has shown that it can be profitable by focusing their efforts on the high-end with the Droid. They did this with Jobs at the helm and without an Apple logo.

If you look at Apple's growth you see that it's not from Apple's "fans, followers, devotees and cultists" unless you are suggesting that they are exponentially buying new Apple products. Apple certainly creates a lot of fans but they are created, not a default from some time before Jobs returned where Mac sales in a year was less than Apple sells in a quarter.

Sorry, I should have qualified it with an 'as'. Do you really think Moto could drop to a single model of phone and be as successful with it as Apple has been?

Yes, Apple fans are created and the number is growing. I didn't mean a single, static group of fans nor that those fans were the only ones buying Apple products. But, they are are responsible for helping to grow the business. They were more formally evangelists back in the day, because they were a recognized tool for helping Apple. But before Jobs returned, if it wasn't for those fans hanging on, even with disasters like Spindler and Amelio, do you think Apple would have been able to cling to life long enough for Jobs to return? The number of fans has exploded since (Jobs unique charisma is at least party responsible for this), but that is the point. Today's Apple would be successful just attracting new customers. Their success became a wild success because their customers become devoted fans. Something not many other companies can claim.

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post #31 of 70
Quote:
Originally Posted by Quadra 610 View Post


LOL
post #32 of 70
So basically there are a few races here:

1) iPhone vs. Verizon vs. Google vs. Blackberry

The Blackberry is the clear winner. I also don't see how it will be dethroned. I think people consistently ignore how powerful an effect BBM is on Blackberry sales.

However, looking at 2nd place, the iPhone has the clear edge here. Apple is just trumping everyone in this case. Verizon is doing well in second place, but thats not too impressive considering they are essentially the only ones selling smartphones to half the customers in the US.

2) iPhone OS vs. Blackberry OS vs. Android vs. Palm

The Blackberry OS has good marketshare, but unfortunately, its not a true OS, in that people don't consider it independent of the HW. The OS sells because its on blackberries instead of blackberries selling because they are running Blackberry OS. So, I personally don't believe the Blackberry OS is doing well, but this is being masked because the phones are indeed selling well. Oh, also, that v6.0 looks like a demon hybrid of the iPhone OS and Android. Its terrible.

WebOS is dead. However, if anyone has the resources to resurrect it to the land of the living, its HP. Lets see if they can actually pull it off.

Android has a lot of momentum, and the OS itself is possibly doing better than the iPhone OS on iPhones, in the US. However, its not clear how much of those better sales are just a consequence of the fact that they are the only game in town for 50% of the market, which the iPhone OS on iPhones doesn't even have access to. In the (albeit a limited, and unfair comparison) few markets they compete directly (international, and ATT) the iPhone is trouncing the Android. If Apple opens up to all carriers come June (or even just Verizon), I think that will seriously dent Android's popularity.

The iPhone OS, considering simply iPhones, is doing well, but is potentially losing steam. Lets see if this holds true once 4.0 is released. However, what gives it a huge boost over anyone else is the iPod Touch (and now the iPad). Also, 4.0 has the capability to completely entrench the iPhone OS in all aspects of peoples lives, with the exclusive networks (The game center) and dev opportunities its building (iAds, which might end up paying over a dollar to devs for each click! Google is paying in tenths of pennies!). The iPhone OS has become a complete juggernaut (and the easy integration with the iPad is just going to extend this lead). The only ones who can screw this up, however, are Apple themselves, with their asinine app store policies, and with their lack of presence on non-ATT carriers. Note that I am not advocating Apple not filter the App Store, but, however, they need to be consistent, and clear, so a developer can determine whether an app will be accepted or not before spending more than a couple of days of research. What is hurting development on the App Store is not the restrictions, but rather, the lack of clarity in the restrictions.
post #33 of 70
Quote:
Originally Posted by addicted44 View Post

The iPhone OS, considering simply iPhones, is doing well, but is potentially losing steam.

Potentially? They did record sales of the iPhone in the quarter AFTER the holidays, 6 to 9 months after the 3GS was released when many new phones touting superior HW specs have come onto the market. I don't see any slowing down, just growth and interest building.

Apple is already the most profitable handset maker in the world and all sign point to Apple beating RiM in handset unit sales this year.
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post #34 of 70
Have to agree the the IPHONE craze is losing steam. While the IPHONE represents a great piece of technology, it'sstill behind in features that many current cellphones & smartphones currently have. A few examples woulds be an LED Flash, A removeable battery, etc.
Sure the numbers are up as Apple is entering new markets. Hopefully Apple realizes that the they should have as many features if not more than the current phones on the market.
post #35 of 70
Quote:
Originally Posted by addicted44 View Post

So basically there are a few races here:

1) iPhone vs. Verizon vs. Google vs. Blackberry

The Blackberry is the clear winner. I also don't see how it will be dethroned. I think people consistently ignore how powerful an effect BBM is on Blackberry sales.

However, looking at 2nd place, the iPhone has the clear edge here. Apple is just trumping everyone in this case. Verizon is doing well in second place, but thats not too impressive considering they are essentially the only ones selling smartphones to half the customers in the US.

2) iPhone OS vs. Blackberry OS vs. Android vs. Palm

The Blackberry OS has good marketshare, but unfortunately, its not a true OS, in that people don't consider it independent of the HW. The OS sells because its on blackberries instead of blackberries selling because they are running Blackberry OS. So, I personally don't believe the Blackberry OS is doing well, but this is being masked because the phones are indeed selling well. Oh, also, that v6.0 looks like a demon hybrid of the iPhone OS and Android. Its terrible.

WebOS is dead. However, if anyone has the resources to resurrect it to the land of the living, its HP. Lets see if they can actually pull it off.

Android has a lot of momentum, and the OS itself is possibly doing better than the iPhone OS on iPhones, in the US. However, its not clear how much of those better sales are just a consequence of the fact that they are the only game in town for 50% of the market, which the iPhone OS on iPhones doesn't even have access to. In the (albeit a limited, and unfair comparison) few markets they compete directly (international, and ATT) the iPhone is trouncing the Android. If Apple opens up to all carriers come June (or even just Verizon), I think that will seriously dent Android's popularity.

The iPhone OS, considering simply iPhones, is doing well, but is potentially losing steam. Lets see if this holds true once 4.0 is released. However, what gives it a huge boost over anyone else is the iPod Touch (and now the iPad). Also, 4.0 has the capability to completely entrench the iPhone OS in all aspects of peoples lives, with the exclusive networks (The game center) and dev opportunities its building (iAds, which might end up paying over a dollar to devs for each click! Google is paying in tenths of pennies!). The iPhone OS has become a complete juggernaut (and the easy integration with the iPad is just going to extend this lead). The only ones who can screw this up, however, are Apple themselves, with their asinine app store policies, and with their lack of presence on non-ATT carriers. Note that I am not advocating Apple not filter the App Store, but, however, they need to be consistent, and clear, so a developer can determine whether an app will be accepted or not before spending more than a couple of days of research. What is hurting development on the App Store is not the restrictions, but rather, the lack of clarity in the restrictions.

Can I get the abridged version?
post #36 of 70
Quote:
Originally Posted by BUSHMAN4 View Post

Have to agree the the IPHONE craze is losing steam. While the IPHONE represents a great piece of technology, it'sstill behind in features that many current cellphones & smartphones currently have. A few examples woulds be an LED Flash, A removeable battery, etc.
Sure the numbers are up as Apple is entering new markets. Hopefully Apple realizes that the they should have as many features if not more than the current phones on the market.

You're either trolling or you truly, honestly do not get it.

All the other phone makers have those features yet the iPhone is constantly outselling all of them. You probably have not even made the effort to sit down and wonder why that is. It's simply easier for you to state your own personal opinion as fact instead of doing actual research.

"Losing steam"... yeah right.
post #37 of 70
Quote:
Originally Posted by BUSHMAN4 View Post

Have to agree the the IPOD craze is losing steam. While the IPOD represents a great piece of technology, it's still behind in features that many current MP3 players currently have. A few examples woulds be an FM RADIO, a removeable battery, etc.
Sure the numbers are up as Apple is entering new markets. Hopefully Apple realizes that the they should have as many features if not more than the current phones on the market.

Gee, sounds like we've heard all this before.

Removable battery? Really? Let me introduce you to the MBPs of the last two years.

http://www.apple.com/macbookpro/
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post #38 of 70
Quote:
Originally Posted by solipsism View Post

Potentially? They did record sales of the iPhone in the quarter AFTER the holidays, 6 to 9 months after the 3GS was released when many new phones touting superior HW specs have come onto the market. I don't see any slowing down, just growth and interest building.

Apple is already the most profitable handset maker in the world and all sign point to Apple beating RiM in handset unit sales this year.

That is all true. However, I would argue, that the iPhone sales are no longer because of the iPhone OS, but rather, due to the great integration Apple provides with the iTunes Store, the quality HW, and due to the App based network effects.

While these can all rightly be considered part of the iPhone OS, they are replicable in other OSes. The iPhone OS by itself, as shortly as when 3.0 was released, was a class apart from Android even without considering the huge eco-system of Apps, and the advantages conferred by integration with iTunes. People would line up to buy an iPhone even if there wasn't a single 3rd party app on it.

I think Apple has the potential to do that again with 4.0 (although, indirectly, by giving developers huge exclusive benefits through iAds) but we will have to see when its released.
post #39 of 70
Most people would not want a thicker phone to get replaceable battery - not a good tradeoff, and unnecessary.

A camera flash for my iPhone - Would not be used that much, but handy when you need it. Not a deal breaker in my book.

Why don't these things matter much? Because they do not have much affect on Apps. And Apps is where it is at. if we still did not have GPS, for example, then there is plenty to complain about. These other examples are trivial. How many apps were deemed impossible due to the lack of a battery cover?

Now, Multi-tasking - there is a big deal. It will have a big impact on future App development. Can't wait to get OS 4!

After 2 iPhones, I still find the novelty in the device. Have you all tried Siri yet? Too cool.
post #40 of 70
Think iPad was an unfortunate name choice? What about Millstone--oops, Milestone.
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