Early sales figures of Motorola’s (NYSE: MOT) Droid 2 show that the smartphone is doing extremely well, with estimates of the product selling 150,000-200,000 units in its first week. Many stores which carry the phone have already sold out of their initial inventories and, Morgan Keegan analyst Tavis McCourt notes, Verizon could perhaps sell over 3 million Droids in the third quarter. This is a significant number by any measure.
This upward trend in the popularity of Droids, however, does not bode well for Apple (NASDAQ: AAPL), makers of the iPhone. Consumers are proving that the Droid is not only a suitable, but oftentimes preferred, smartphone product. It is no longer considered the “alternative” to Apple’s “staple,” but an equal competitor. In addition to this, the increase in Droid units being sold implies a trend in consumer habits. Namely, smartphone customers are growing to like Droid phones more and more.
Apple will allegedly be releasing their iPhone 4 in China in September. Hopefully for them this will be a success, otherwise Motorola’s Droid may become the industry’s most-loved.
Charles B. Stockdale
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