Droid: Challenger to the iPhone?
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Case Details:
Case Code : MKTG245
Case Length : 30 Pages
Period : 2007-2009
Pub Date : 2010
Teaching Note :Not Available Organization : Motorola Inc. / Verizon Wireless
Industry : Consumer Electronics
Countries : US
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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
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Excerpts Contd...
The Results
With no official figures being provided by Verizon, some industry sources speculated that Verizon had sold nearly 100,000 units of the Droid in the first week. But others reported that the teaser ads had led to Verizon selling 2,50,000 units of Droid in the first week of its launch...
Is the Droid an iPhone Killer?
The Droid launch received mixed reactions from analysts, industry experts, and customers. Some analysts opined that Verizon's motive behind launching the campaign was neither to attack the iPhone nor sell Droids but to compete against AT&T as its subscriber base had increased ever since the launch of iPhone in 2007...
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Response from the Competitors
The launch of the Droid led to the emergence of yet another aggressive player in the rapidly growing smart phone market. The Android OS capability of the Droid was expected to affect the market shares of companies like Apple, RIM, and Palm...
Outlook
Industry observers felt that Motorola deserved kudos for coming up with a smart phone and also launching it successfully. They felt that the company had made a comeback by entering the lucrative smart phone mobile market and had managed to attract the attention of the existing competitors...
Exhibits
Exhibit I: Motorola's Financials
Exhibit II: A Brief Note on Verizon and Google
Exhibit III: Image of the Droid
Exhibit IV: Key Features of Droid
Exhibit V: Some of the Promotional Mailers of Droid
Exhibit VI: Droid Promotion on Google's Home Page
Exhibit VII: Wireless and Mobile News' Top Ten Coolest Smart Phones of 2009
Exhibit VIII: Time's Top Ten Gadgets (2009)
Exhibit IX: BillShrink's Comparison of Smart Phones
Exhibit X: A Note on the US Smart Phone Market
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