Sales from its handset business climbed 20 percent to $2 billion last quarter, helping to narrow its loss to $43 million from $216 million a year earlier. The division had an operating profit, excluding some charges, of $3 million. Motorola said it shipped 3.8 million smartphones last quarter.
via Motorola Profit Tops Estimates on Rising Sales of Droid Phones – Bloomberg.
Motorola shipped a total of 9.1 million phones. This is down 33% from the year-ago quarter’s 13.6 million units but up 10% sequentially from 8.3 million last quarter.
I’ll summarize the top tier vendors’ unit volumes, sales value, price and profitability in a few days.
From a comment in the article below:
I installed HTC’s leaked version of 2.2 on my incredible last month. It has been noticeably faster, has better battery life, and the extra features are nice. As expected, Verizon put a lock down on the wifi tethering feature, and if I want to use it I have to pay an ADDITIONAL $25/month, which is completely ridiculous. Luckily, my phone has been rooted (it was the only way to get froyo on there) and I can use a number of FREE wifi tethering applications that don’t cost anything extra per month either.
It’s pretty sad that the only way to enjoy an android phone is to hack the crap out of it, and doing so requires relative technical expertise.
via Motorola’s Android 2.2 Rollout: What a Mess – PCWorld.
Reminds me of Windows Mobile in another way: the only real fans were those who could play with cooked ROMs. Conversely, imagine if the only iPhone fans were those who jailbroke/unlocked iPhones.
See also: The Android abdication
First quarter market share ranking of top mobile phone vendors according to Strategy Analytics:
- Nokia, 107.8 million
- Samsung, 64.3
- LG, 27.1
- RIM, 10.6
- Sony Ericsson, 10.5
- Apple 8.75
- Motorola, 8.5
These numbers are shipments or sell-in, which may differ from sell-through or end-user purchases.
RIM breaks into top 5 in surging phone market | Reuters.
However, it has lost its position as the largest U.S. maker of phones to Apple Inc. Motorola sold a total of 8.5 million phones in the quarter, while Apple sold 8.8 million iPhones. Four years ago, when the Razr was still popular, Motorola sold 46.1 million phones in the first quarter.
via Motorola posts profit, strong sales; stock jumps – Yahoo! Finance.
A year ago, Motorola sold 14.7 million phones in the fourth quarter (a y/y drop in unit volume of 42%). The drop in phone revenue in the same period was 9 percent.
I calibrate my growth rates on the assumption that Apple will overtake the combined share of the two money-losing handset vendors.
Sony Ericsson and Motorola are the weakest competitors in terms of portfolio and competence with software. Their sales, units and profits shares for 2008/2009 are shown in the graph above (source: Morgan Stanley).
Therefore, my thesis is that Apple could beat these two weakest competitors in 3 more years.
Here is the basic top-down view:
In 2009 174 million smartphones were sold out of a total of 1.13 billion phones (IDC, Strategy Analytics). Using a 10% CAGR on this figure gives 1.65 billion phones in 2013
Apple obtained 2.1% share in 2009 and about 1.5% share in 2008. My forecast share for Apple:
During the last quarter, Sony Ericsson held 4.5% share and Motorola 3.7% therefore my 2013 target for Apple is a little less than the sum of what these two hold today.
This results in unit sales for Apple of 125 million units for 2013 and a compound annual growth rate of 50% a year.