Analyst: Motorola Sold 100,000 Droid Smartphones
By Phil Goldstein
Although anticipation was high, lines outside Verizon Wireless retail stores to purchase the Android-based Droid smartphone were relatively short last Friday when the device went on sale. Nevertheless, one analyst says that Motorola sold around 100,000 Droid units in the first weekend of its release.
According to Mark McKechnie at Broadpoint AmTech, Verizon had around 200,000 units in stock and sold half of them over the weekend. He estimated that Motorola will sell 1 million phones running on Google's Android platform in the fourth quarter and 10 million in 2010, giving new life to the struggling handset maker."
Although the press is stating the Droid launch was not as successful as the iPhone launch, we don't believe investors expected an iPhone-like launch, but rather a first step in a cadence of products that will help bring Motorola's handsets out of the death spiral experienced during the past three years," Citigroup analyst Jim Suva wrote in a research note. Verizon has not released any weekend sales figures, but seemed confident about the level of buzz the Droid was generating.
On Friday, Verizon also launched another Android phone, the HTC Droid Eris. The collaboration between Verizon and Google has benefited from the close relationship that has developed between Verizon Wireless CEO Lowell McAdam and Google's chief executive, Eric Schmidt, according to a report in the Wall Street Journal. [FierceWireless]
Verizon Jumping Into Netbook Market
By Phil Goldstein
Verizon Wireless appears to be getting into the netbook market, following chief rival AT&T's plans to subsidize netbooks for as low as $99, according to a report on TheStreet.comThe report, citing an unnamed company official, said that at least one netbook had passed Verizon's strict network compatibility tests, and that the carrier will launch more netbooks in the future. The Verizon source did not reveal which computer brands or models were involved in the deal. There is no word on pricing or availability.
The move, if confirmed, would make sense for Verizon as it tries to maintain its competitive edge against AT&T. AT&T confirmed earlier this month that it is subsidizing netbooks in order to lure customers to sign two-year service contracts. Customers can get the netbooks from AT&T for $99, but then have to pay a $60 per month fee to use AT&T's data services.
The subsidy model is a strategy that AT&T has said it will seek to employ not only with netbooks, but with other devices, including portable video game devices and digital cameras.
"The economics for us is terrific," Glenn Lurie, AT&T's president of emerging devices, said in an interview with Investor Business Daily earlier this month. "We're willing to invest to get a customer." Lurie will be talking about AT&T's embedded device strategy during FierceMarkets' Path to 4G event April 1 at CTIA Wireless 2009 in Las Vegas. Click here to see the agenda. [FierceWireless]
Verizon Wireless Nearing Search Deal With Google
By Jason Ankeny
Verizon Wireless and Google are poised to announce a partnership that would install the web services giant as the default mobile search portal across the operator's device portfolio. According to The Wall Street Journal, Verizon plans to streamline its mobile search user experience by creating a one-stop, Google-branded search platform spanning from local information to mobile content acquisition.
The deal calls for Verizon and Google to share advertising revenues, but the two firms are still negotiating several key points of the partnership, including Google's demands for access to consumer behavioral data. Citing sources familiar with the matter, the WSJ adds that Verizon has mulled other search partners, including Microsoft--Medio Systems, which presently supervises the operator's digital content search service, would remain on board to manage an all-in-one search effort.
A Verizon/Google deal would herald a détente in the companies' often combative relationship. Last autumn, Verizon filed a lawsuit to force the FCC to abandon Google-backed open access regulations that would have required wireless carriers to begin opening their networks to more services and handsets; Google later admitted its sole rationale for entering this spring's 700 MHz spectrum auction was to drive up bidding and guarantee its open access conditions were met.
While Verizon later changed course and announced its Open Development Initiative, promising to introduce open access nationwide by the end of 2008, in May Google petitioned the FCC to obtain a guarantee from Verizon promising the operator will honor its commitment to open access. That same month, Verizon Wireless formally announced its membership in the LiMo Foundation open handset consortium, effectively spurning Google's Android mobile OS in the process. [FierceMobileContent]
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