Can the Droid save Motorola?Could Motorola's new smartphone, the Droid, be the company's next Razr a la 2010?
The Motorola Droid (Credit: Kent German/CNET ) About a year after announcing this new strategy, the company introduced the Cliq and the Droid. In general, the Cliq has gotten a good reception from reviewers, but there seems to be much more enthusiasm around the Droid, a touch-screen device that some say rivals Apple's iPhone. Some of the impressive features include Google-powered voice-activated search, a 550MHz processor, and a 3.7-inch with 480 x 854-pixel resolution. But what is likely to make the device a true competitor to the iPhone is the fact that it is exclusively available on the Verizon Wireless network. Verizon is the largest wireless operator in the U.S. and it has the largest coverage footprint. The company has also gotten high marks for its reliable network. And its customers are among the most loyal in the industry. Verizon has been looking for an iPhone-killer since AT&T started its exclusive partnership with Apple. But devices, such as Research In Motion's first touch-screen phone, the BlackBerry Storm, have not met the challenge. Verizon is expected to launch its most aggressive marketing campaign ever to promote the new device, John Stratton, executive vice president and chief marketing officer at Verizon Wireless, said at the Droid launch event in New York this week. The company has already launched a pre-advertising campaign that spoofs the iPhone. Analysts expect the device to sell well out of the gate. "Verizon sold a million of the original BlackBerry Storms in the first nine weeks it was available," Avi Greengart, an analyst with Current Analysis, said. "And that was a buggy mess. So I expect this device will at least meet that, if not exceed it." Motorola's Jha said during the company's earnings conference call Thursday that the company is ready for a flood of orders. "We feel very good about our ability to meet demand for the Droid," he said. "We've spent a lot of time studying what has happened in market when successful new products have been introduced. And we've been working closely with Verizon, and we've got good access to components suppliers that we feel good about things." Motorola's management team has successfully cut costs, which included eliminating 8,000 jobs. And on Thursday it announced its second consecutive quarter of profits after experiencing heavy losses and shrinking market share in the cell phone business for several quarters. Success not guaranteed, analyst cautionsWall Street analysts are encouraged by the good news."Directionally, things are moving the right way in terms of new devices, carrier partnerships, and narrowing losses for Motorola's Mobile Devices segment," Mark Sue, an equities analyst with RBC Capital, said in a research note. But Sue also cautioned that Motorola's success is not guaranteed. "It won't be a smooth ride however, with timely delivery of new smartphones, high quality, and carrier endorsements key elements of Motorola's future success," he said. What's more, Motorola also faces tough competition in the smartphone market. This holiday season consumers will be inundated with iPhone alternatives. Research In Motion has two new BlackBerry devices on the market. And there are a slew of other Android phones that have recently been introduced. In addition to the Motorola Cliq and Motorola Droid, there is also the Samsung Moment and the HTC Hero, both on Sprint's network. T-Mobile also has other Android devices, including the G1 and the myTouch. The Palm Pre, which went on sale in June, is yet another smartphone on the market with similar functionality. Again, one of the good things the Droid has going for it is its affiliation with Verizon, whose executives seem pleased to reconnect with the handset maker. "We've had a long history with Motorola," Verizon's top marketing executive, John Stratton, said at the Droid event. "And we've lived through the company's ups and downs. This is a new Motorola. We took a chance, maybe even a risk, at the early stage in the rebirth of the company, and we're delighted in what we've seen in last 12 months." Originally posted on Signal Strength, CNET News Tags: Smart Phone, Device, Apple iPhone, Motorola Inc., Droid
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Motorola is already half feet in the grave. No one can save it now, not even Droids. Google's Android is not as exciting as Google wants us to believe. Yes, its free and yes its the new kid on the block, but also its one of the most boring and naked mobile OS in the market. No apps, no support and nothing new from the community.
The best mobile OS is the Mac OS from Apple, if Android wants to learn something, they should learn from Apple. I am not an Apple fan boy (I dont own any iPhones or iPods) but Google needs a big push to make Android a real success otherwise its just a gimmick with no real use.
Nov 03, 2009 03:32
Looking at Motorola stocks, down 4.51% on first day of Droid launch, simply tell you the story...
Android is a good OS, but Motorola is not the only Android player in the market... HTC and Sony are coming out with more innovative UI better than Motorola..Moto sales is only strong in North America..well America is still losing jobs and it will take awhile before american will start spending again...
Nov 07, 2009 11:03
