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Motorola admits Verizon iPhone triggered 'slowdown' in Droid

updated 06:15 pm EST, Wed January 26, 2011

Motorola warns Verizon iPhone already damaging

Motorola chief Sanjay Jha during the company's fiscal results call acknowledged that the Verizon iPhone was already damaging his company's smartphone performance. Shipments were not only down both in the wake of the January 11 Apple news but even in the weeks before it was made official. The CEO wouldn't quantify numbers but admitted that anticipation for the iPhone had led some to hold off on buying a Droid.

"We have seen a little slowdown in our sellthrough of our devices," Jha said. "We have seen that effect even prior to the iPhone."

He was still optimistic that Motorola could succeed but was counting primarily on diversifying its high-end Android mix in the US beyond Verizon, such as with the Atrix 4G at AT&T. Motorola also still had a "meaningful relationship" with Verizon. He didn't assume that Motorola would necessarily hold its leading position at the CDMA carrier and said "time will tell" as to whether the iPhone or Droid lineups would be more popular in stores.

The phone designer added that mid-tier smartphones were a problem in the US. Even after US carriers like AT&T and Verizon imposed bandwidth caps or offered lower tiers, which Motorola assumed would drive users to cheaper phones, customers kept buying high-end phones like the Droid 2 and Droid X. That worked against Motorola as it misjudged sales and had to compete more in the same space as rivals like Apple.


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By Electronista Staff
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Comments

  1. slapppy

    Fresh-Faced Recruit

    Joined: Mar 2008

    +11

    But its FREE

    What's the problem? Users should not hold out on using a device that user an OS created by Google. An OS designed to be free so that you get to be the advertising companies easy target. Whats wrong with that?

  1. starwarrior

    Fresh-Faced Recruit

    Joined: Mar 2006

    +12

    They did to find this guy

    "Motorola assumed bandwidth caps would drive users to cheaper phones."

    and can him.

  1. iphonerulez

    Dedicated MacNNer

    Joined: Nov 2008

    +4

    Why buy an iPhone wannabe when you'll be able to

    get the real deal in a few weeks. Comparing a Droid to an iPhone would hardly be an even match. Comparing any almost any Android smartphone to an iPhone is absurd. Smartphone vendors are stuck with Google's Android because they have no solution of their own. It's either go free Android or pay for WP7 licenses. I want to see with my own eyes, the iPhone putting a dent in all Android sales. Verizon subscribers are going to go nuts with the iPhone suddenly becoming available. Once word gets out, there'll be a flood of Verizon subscribers wanting to exchange their Android smartphones for iPhones. They'll desperately want access to iTMS and the App Store.

  1. samirsshah

    Fresh-Faced Recruit

    Joined: Oct 2010

    +2

    Worth noting...

    "The phone designer added that mid-tier smartphones were a problem in the US. Even after US carriers like AT&T and Verizon imposed bandwidth caps or offered lower tiers, which Motorola assumed would drive users to cheaper phones, customers kept buying high-end phones like the Droid 2 and Droid X. That worked against Motorola as it misjudged sales and had to compete more in the same space as rivals like Apple."

    Artificial squishing of prices due to subsidies. Why buy a mid-range phone for $149 when you get high-end for $199. You are going to pay your carrier through your nose anyways. Low tiers offer too little in megabytes you can use. Do not give me totally b******* statistics from AT&T. What is important is not what people are doing now but what they aspire to do.


  1. facebook_Justin

    Via Facebook

    Joined: Jan 2011

    +2

    comment title

    I just ordered an i4 from AT&T. I had the option to get an Android device, but I chose iPhone 4. Why? Because it's amazing compared to any other device. Even the iPhone 1 is better then a Droid Incredible (more like Incredibly crappy). But, I think AT&T has a much better setup then Verizon. Verizon is on the right track with their LTE network, but AT&T offers rollover minutes, cheaper data plans, 3G+calling at the same time (which is actually a vital feature, because without it every time you make a phone call you are disconnected, meaning no push E-Mail or anything else will work unless your on Wi-Fi), the worldwide GSM network (which has a million benefits on its own compared to CDMA), and more then likely, they'll be lowering their prices in general very soon to compete with Verizon. So I recommend all of you just going with AT&T, there actually a good network, and my area is proof because AT&T gets 3G and Verizon actually gets dropped calls.

  1. facebook_Omega

    Via Facebook

    Joined: Jan 2011

    -3

    This is a really ridiculous apple fanboy site!

    From this; "We have seen a little slowdown in our sellthrough of our devices," Jha said. "We have seen that effect even prior to the iPhone," you somehow surmise this; "Motorola admits Verizon iPhone triggered 'slowdown' in Droid"? Are you kidding me?

    I guess that Reality Distortion Field is amplified by all the apple product that you folks must have in your online business.

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