Today, Counterpoint Research announced that Motorola has replaced LG in the US smartphone market, taking the third position.
In fact, back in 2008, when there were mainly feature phones on the market, Motorola had no rivals. Of course, when we say it was leading the market, we mean both feature phones and smartphones. However, the emergence of smartphones made the market change. And since those times, 2021 was the first year, when Motorola entered the top three in the US smartphone market.
As for numbers, the company has managed to double its sales reaching a growth rate of 131 year over year. At the same time, Apple and Samsung are the two kings in the premium smartphone segment. In another segment of $400 and below, Motorola ranks second.
In this regard, Counterpoint Research Director Jeff Fieldhack said, “A common question is how Motorola has grown to over 10% of the US market. Motorola has been a key OEM filling the void left by LG’s exit. The OEM has all the key characteristics major carriers look for – a full portfolio, ability to ramp volumes, and low return rates. Motorola’s sub-$300 portfolio – Moto G Stylus, Moto G Power and Moto G Pure – has driven its success in the US. Thanks to its reliability, Motorola has been a key free ‘switch’ device, a device carriers use to move subscribers from networks that are being shut off or as a device MVNOs (mobile virtual network operators) use when changing network partners.”
How Motorola Could Rank Third In The US Smartphone Market?
More interestingly, when talking about the channels, Senior Analyst Varun Mishra said that Motorola could reach such results mainly due to the large US prepaid channels (Verizon Prepaid, Metro by T-Mobile, Cricket, and Boost). According to the research organization’s reports, Motorola still remains a very trusted and known brand in the US. Moreover, American customers look mainly for value, dependability, and long battery life. In this sense, Motorola phones are considered to be good options.
According to the Counterpoint Channel Share Tracker database, Motorola has maintained its momentum in Q1 2022. Mishra said, “Motorola has had a very strong tax season (February-March) in the US market. The brand’s goal for 2022 and 2023 is to grow its volumes in higher price tiers. This will be challenging with the stranglehold Apple and Samsung have on the US market. However, Motorola was very early in releasing 5G and foldable devices. It will attempt to benefit from the US subscriber base transition to 5G as well as the growth of foldable in lower price tiers.”
