Motorola Becomes Third Largest Smartphone OEM in the US in 2021

Motorola emerged as the third-largest smartphone brand in the US in 2021, according to Counterpoint Research. In 2008, when feature phones were dominant, Motorola was the largest handset OEM in the US. However, within the smartphone segment, this is the first time 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%. While Apple and Samsung dominate the premium price bands, Motorola rose through the ranks to become the #2 smartphone player in the $400 and below price segment in the US.

“A common question is how Motorola has grown to over 10% of the US market. 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, the ability to ramp volumes, and low return rates. Motorola’s sub-$300 portfolio - Moto G Stylus, Moto G Power, and Moto G Pure - has driven its success in the US. Thanks to its reliability, Motorola has been a key free ‘switch’ device, a device carriers use to move subscribers from networks that are being shut off or as a device, MVNOs (mobile virtual network operators) use when changing network partners,“ said Jeff Fieldhack, Research Director at Counterpoint Research.

“Motorola has grown its market share in the large US prepaid channels (Verizon Prepaid, Metro by T-Mobile, Cricket, and Boost) to 28%. Our Consumer Lens research shows Motorola remains a very trusted and known brand. Prepaid consumer studies have shown users look for value, dependability, and long battery life. Motorola scores well on these criteria,“ added Varun Mishra, Senior Analyst at Counterpoint Research.

According to the Counterpoint Channel Share Tracker database, Motorola has maintained its momentum in 1Q22. Mishra said that 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. It will attempt to benefit from the US subscriber base transition to 5G as well as the growth of foldables in lower price tiers.“