In 2010, the revenue of Motorola was derived from sales on Verizon’s network. The carrier was one of important side for Motorola since the company saw 13% of its revenue from the carrier in 2008 and 17% in 2009. From the latest update, it shows that there is about 28 percent of phone rolled out by Motorola came from Verizon to be available on the market before pre-CDMA iPhone came into view.
It is a public record that Motorola is one of the phone makers that becomes the first that uses Android operating system on its devices. The company launched Android-based mobile phones in 2009 by producing Motorola Droid. Meanwhile, the crucial relationship between Motorola and Verizon had made to be official in a regulatory filing recently. According to Illinois company, the important statement is that a significant loss of revenue from Verizon may give a negative impact to their business.
The information above highlights the belief that it is strategy chosen by Apple when it took the decision to end the iPhone exclusivity in the US. According to Wall Street’s analyst, Verizon’s account was estimated for roughly twenty percent of all Android users worldwide.
Moreover, another recent rumor appeared delivers the details that Apple and Verizon are dissatisfied by the launch sales of the CDMA iPhone 4 since this device has been available for sale this month. Also, the rumor came with information that thirty percent of Verizon iPhone users were Android users changing to Apple’s device. If it is true, this dramatic change may surely impact the future revenue.
On the contrary, the carrier spokesperson commented the report contradictorily by arguing that Verizon was content with the initial sales and satisfied with today’s condition. There are no sales records for the Verizon iPhone 4 have been released to the mainstream market yet.
From the situation occurred presently, it seems that the real test for Android devices on Verizon network for companies like Motorola will arrive especially when the rumored iPhone 5 launches. Apple expects the so-called iPhone 5 to release on Apple’s annual June timeframe. This rumor may attract many users’ reactions.
More significantly, the two major and biggest carriers in United States, AT&T and Verizon, can have the chance to make immediate launch of their new phones. How the users welcome the newly-launched devices from these two carriers in the future can be a great market situation to be predicted.