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Verizon iPhone Will Give Motorola a Drubbing

Motorola is going great guns with its Android-based devices launches, and there may be a good explanation for that rush of activity: Once Verizon Wireless launches the Apple iPhone, Motorola is crusin for a bruisin.

Or so although not in those words says one analyst (and, keep in mind, analysts are not omniscient seers).

But Ashok Kumar of Rodman & Renshaw could be on to something (even though hes been wrong more times in the past year than hes been right). On Wednesday, Kumar said in a client memo that Motorola will miss estimates for third-quarter handset sales, thanks to slowed production and unenthusiastic adoption of Android devices in China. 

Those factors will carry impact into the fourth quarter, Kumar predicted; Motorola will only sell about 5.5 million handsets in the three months ending Dec. 31, Kumar predicted.

Matters look worse still for Motorola in 2011, Kumar said, after Verizon Wireless debuts its version of Apples non-stop-popular iPhone.

Such dire outlooks, though, require some tempering. Yes, Motorola will lose market share once the iPhone hits the Verizon network. However, not all is lost. More and more consumers are turning to Android-based devices because they like their open nature; theres many a non-fan of Apples walled-garden approach to wireless devices and apps. Motorola is seeing strong success with its Droid handsets, and its coming to market with some lower-end devices such as the Citrus that fit strapped consumers budgets much better than the expensive iPhone.

Plus, keep in mind that Motorola is if rumor is to be believed working on a tablet of its own, something to compete with the Samsung Galaxy and the Apple iPad. And heck, if Motorola prices its tablet lower than $600, itll probably find legions of fans since so many people are up in arms about the Galaxys $600 price tag.

And dont forget that Motorola develops wireless devices for more carriers than just Verizon Wireless. So even though Big Red is the largest mobile operator in the United States, its far from the only game in town.


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