Apple jumps past Motorola to become biggest US phone maker
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.
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.
Comments
That's "Motorola" not "Microsoft."
Haha what kind of typo is that? That pretty bad....
Where does Nokia stand in all of this?
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!
Haha what kind of typo is that? That pretty bad....
Where does Nokia stand in all of this?
Finland?
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.
Finland?
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.
I have to assume that Apple has increased its lead as the most profitable handset maker in the world.
Apple is DOOMED.?
It's trademarked, sir. (Fixed it for you).
Is anybody taking notes in the industry?
Hello? Anybody home?
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
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!
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.
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
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).
StarTac
Right! Thanks, boy does that bring back memories!