This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Heavy Load on Droid's Pointy Shoulders

NEW YORK ( TheStreet) -- The guesswork has begun as analysts try to predict how many Motorola (MOT) Droid phones Verizon (VZ - Get Report)can sell when the Google (GOOG) Android-powered device debuts next Friday.

One thing seems certain: You will find it hard to avoid the massive upcoming Droid advertising campaign, which Verizon calls its biggest marketing effort ever.

There is a lot riding on the Droid, to be sure. Verizon needs a holiday blockbuster. Motorola needs Droid's success to get back in the game. And the ultimate showdown is how well the Droid does compared with Apple's (AAPL - Get Report) iPhone sold by Verizon rival AT&T (T - Get Report).

Motorola CEO Talks Droid




The magic number in this matchup is 1 million phones sold. And the $400 million-plus question is how long it takes to get there. (Macquarie Securities analyst Phil Cusick estimates Motorola collects more than $400 per phone from each sale.)

In other words, will it burst out of the gate like the iPhone, or stumble like the Palm (PALM) Pre?

"Half a million units on the debut weekend is the target to beat if you want to challenge the iPhone," says Nielsen analyst Roger Entner.

Fittingly, the iPhone is the measure of success. Not only has the slim touchscreen iPhone set the current standard for smartphones, but its debut sales performance, complete with round-the-clock blogging from the waiting line and glaring door-buster media coverage, is the yardstick of any initial gadget success.

It took 74 days for the original iPhone to hit the million-sold mark. But the follow-up iPhone 3GS hit a million in three days.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
AAPL $124.75 0.00%
GOOG $524.05 0.00%
T $32.51 0.00%
VZ $48.90 0.00%
FB $80.78 0.00%

Markets

DOW 17,826.30 -279.47 -1.54%
S&P 500 2,081.18 -23.81 -1.13%
NASDAQ 4,931.8150 -75.9760 -1.52%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs