Motorola becomes third largest smartphone brand in US for 1st time

Motorola has emerged as the third largest smartphone brand in the US for 2021 for the first time, as it gained from LGs decline. According to Counterpoint Research, this is the first time ever that Motorola, with over 10 per cent market share, has become the third original equipment manufacturer (OEM) in the US for a full year.

"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," said Research Director Jeff Fieldhack. Motorola's sub-$300 portfolio – Moto G Stylus, Moto G Power and Moto G Pure – has driven its success in the US.

In 2008, when feature phones were dominant, Motorola was the largest handset (smartphones and feature phones combined) OEM in the US. However, within the smartphone segment, this is the first time ever that Motorola has entered the top three in the US market for a full year. Motorola's sales more than doubled in 2021, growing 131 per cent (on-year).

While Apple and Samsung dominate the premium price bands, Motorola rose through the ranks to become the second smartphone player in the $400 and below price segment in the US. "Motorola has grown its market share in the large US prepaid channels (Verizon Prepaid, Metro by T-Mobile, Cricket and Boost) to 28 per cent," said senior analyst Varun Mishra.

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," said Mishra.