Motorola shares are up 2% today as investors start to feel better about the company’s comeback efforts.
But one thing from Motorola’s report still sticks out like a sore thumb: The company shipped fewer phones than Apple for the second quarter in a row, despite a much larger product line.
That’s a HUGE change from three years ago, when Motorola was outselling Apple by 35+ million phones per quarter.
So what happened? For part of the collapse, you can blame Apple’s iPhone, which made everything Motorola and many other vendors were selling look like garbage, and other smartphones like RIM’s BlackBerries.
But Motorola had plenty of internal problems, too, including too much clutter, not enough focus, and the inability to follow up its big hit — the Razr — with anything even remotely as popular.
Unit shipments don’t tell the whole story of Motorola’s collapse or Apple’s rise. Even more impressive is the share of the mobile phone market’s revenues and profits that Apple has taken.
Consider that while Motorola still sold almost as many phones as Apple did last quarter, Apple’s $5.3 billion in iPhone revenue was more than three times as much as Motorola’s $1.7 billion in mobile devices revenue.
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