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Motorola reveals 28% of phone revenue from Verzion in 2010

updated 03:55 pm EST, Fri February 18, 2011

Motorola SEC filing shows dependency on Verizon

Motorola in an SEC filing on Friday confirmed a heavy dependency on Verizon for its success. About 28 percent of all of Motorola's net revenue in 2010, including only the mobile group that split off this year, could be attributed solely to supplying Verizon with phones. The figure could almost exclusively be attributed to Android phones and was portrayed as leaving the company vulnerable if it lost some or all of Verizon's deal.

"Motorola Mobility has several large customers, the loss of one or more of which could have a material adverse effect on us," it said.

The detail supported Verizon's heavy leaning on Android for its phone strategy and that Motorola's success was also tied strongly to the US carrier just as its standing was no longer secure. CEO Sanjay Jha warned that there was an iPhone-related slowdown even in the weeks before Apple made its Verizon deal public, as customers who would have bought a Droid X or Droid 2 held off expecting to get an iPhone 4 instead. Retail sales may have been slightly lower than expected but, according to leaks, led to 550,000 pre-orders alone from existing customers, a large portion of which were either leaving Android phones or going to the iPhone as a first smartphone.

The company has been trying to diversify and is about to ship the Atrix 4G to AT&T as that carrier's first truly range-leading Android phone. Most of its known US roadmap for 2011 still focuses heavily on Verizon, including the Droid Bionic and the Xoom tablet. Any significant failure could create early trouble for a company that had already forecast a loss for its first quarter after the split. [via Bloomberg]



By Electronista Staff
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Comments

  1. Jonathan-Tanya

    Fresh-Faced Recruit

    Joined: Oct 2004

    -2

    Droid Bionic

    the iPhone is a worthy competitor, but also Droid users are waiting on the pre-announced Droid Bionic, this type of pattern occurs and isn't entirely based on the iPhone.

    But the news could be bad for Motorola anyway, Sony is going to have some competitive Android Phones, Samsung is looking good, so is LG.

  1. bigmig

    Fresh-Faced Recruit

    Joined: Jan 2004

    +3

    Wow...

    MMI is even more vulnerable than I thought. Verizon constitutes 38% of their total mobile devices revenue. But that means that Verizon's share of MMI smartphone sales must be substantially higher than that...at least 50%. No wonder they are forecasting a loss again now that the Verizon iPhone has been released. Xoom's DOA pricing scheme will only make things uglier.

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