Motorola Rises to 3rd Place in US Smartphone Market... Can It Recapture Past Glory?

Motorola, Strong in Feature Phones, Rises to 3rd Place for the First Time
Benefiting from LG Smartphone Withdrawal... MVNO Subscribers' Choice

[Asia Economy Reporter Cha Min-young] Motorola, which has experienced over a decade of stagnation, has successfully made a comeback in the U.S. smartphone market by filling the void left by LG. The long-established image of being a 'trusted brand' has resonated well with prepaid phone users, particularly those using MVNOs (Mobile Virtual Network Operators).

According to the monthly smartphone market tracker (Market Pulse) recently released by global market research firm Counterpoint on the 29th, Motorola ranked third in the U.S. smartphone market for the first time last year.

Motorola's sales volume last year increased by 131% compared to the previous year. While Samsung and Apple increased their market share in the premium price segment, Motorola targeted the sub-$400 price range, securing the second position in the market under $400.

Back in 2008, when feature phones dominated, Motorola was the undisputed number one mobile phone manufacturer, holding the highest market share in the handset market that included both feature phones and smartphones. However, after the advent of the smartphone era, Motorola experienced a prolonged slump until it reached third place in the U.S. market for the first time last year.

Jeff Fieldhack, Lead Analyst at Counterpoint Research, stated, “Motorola has captured LG’s gap, increasing its market share to over 10% in the U.S. smartphone market. It possesses all the characteristics that carriers desire, including a comprehensive portfolio, the ability to increase volume, and low return rates.”

The main drivers of this success are Motorola’s sub-$300 products: the Moto G Stylus, Moto G Power, and Moto G Pure. Motorola devices have become key products offered free of charge to MVNO users when they switch networks or carriers, which is believed to have contributed to high sales.

Barun Misra, Senior Analyst at Counterpoint Research, said, “Motorola expanded its share in the U.S. prepaid phone channel, capturing 28% of the market. Prepaid consumers value affordability, reliability, and long battery life, and Motorola scored highly in these areas.”

Motorola is expected to maintain its momentum into the first quarter of this year. Misra added, “Motorola aims to increase sales in higher price segments in 2022 and 2023, but it will be challenging given Samsung and Apple’s dominance in the U.S. market. Motorola is preparing to launch 5G and foldable devices and is optimistic about U.S. consumers’ demand for 5G device upgrades and growth in the low-cost foldable phone market.”

This content was produced with the assistance of AI translation services.