Motorola Now 'Cautious' about Partnership with Verizon because of iPhone

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Thread: Motorola Now 'Cautious' about Partnership with Verizon because of iPhone

  1. #1
    Editor in Chief dgstorm's Avatar
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    Motorola Now 'Cautious' about Partnership with Verizon because of iPhone

    Not too long ago Motorola was lagging so far behind its competitors in so many areas they practically needed a miracle to stay in the technology business or even stay out of bankruptcy. Then Google brought Motorola the Android OS and Motorola brought the first Droid to Verizon. This partnership ultimately energized a massive comeback for Motorola, and now Verizon accounts for 28% of Motorola's sales revenue. This is up from 13% in 2008. In an investor's report filing Motorola indicated that this has created a 'heavy' reliance on Verizon which could soon be impacted by loss of sales due to Verizon getting the iPhone.

    The filing said, “The loss of, or a significant reduction in revenue from, one or more of these customers could have a negative impact on our business." And, Sanjay Jha, CEO of Motorola added that the iPhone has already caused "some slowdown" in sales since it was released. Motorola also realizes that it was not just the iPhone that caused their 'sales-slowdown', but also competition from other Android OS smartphone manufacturer's like HTC and Samsung. Motorola expressed in their report that they need to remain 'cautious' of their reliance on the relationship with Verizon moving forward.

    It is obvious they are starting to make strategic moves to spread their Android devices deeper to other carriers; the Atrix being the prime example. In the past the Atrix would probably have been a Verizon exclusive, but Motorola intends to use it to help repair their business relationship with AT&T before bringing to Verizon.

    However, ultimately, Motorola doesn't intend to 'bite the hand that feeds them'. Jha had this to add, “We have a good continuing relationship with Verizon, and they view the Droid franchise as important to them. I have no reason to believe there will not be support,” Jha said.

    Source: Phandroid and Marketwatch

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  3. #2
    Android Enthusiast mountainbikermark's Avatar
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    Really? Moto didn't see the eventual iPhone/Verizon relationship? They didn't see Android on other manufacturer handsets in the future?
    They didn't see Droid 1 rehashes eventually getting old?
    Didn't see the advertised end of sales date of the X as having an effect?

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    Super Moderator/RS furbearingmammal's Avatar
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    And they didn't see the rising bitterness over the locked bootloader taking a bite out of hard-core geek recommendations?

    Unfortunately, said recommendations probably account for maybe 1% of sales.

    Sent from my Droid using App

  5. #4
    Rescue Squad Debian Dog's Avatar
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    "Make a better product instead of leveraging a network" would be my advice

  6. #5
    Super Moderator Dorian's Avatar
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    28% Motorola... Twenty-Eight PERCENT!

    Saying they want to be cautious with VZW is NOT a wise move.

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