Verizon Claims Strong Sales of Motorola's New 'Droid', But Won't Give Specific Numbers (VZ, MOT)

November 9, 2009 1:23 PM EST

Motorola Inc.’s (NYSE: MOT) new Droid phone saw a modest reception following its release last Friday.

The touch-screen Droid, which is the first to sport the new Android 2.0 operating system by Google (Nasdaq: GOOG), is the latest attempt by Verizon Wireless (NYSE: VZ) to usurp the market share that is dominated by Apple’s (Nasdaq: AAPL) iPhone. Appropriately, the Droid has a marketing campaign specifically designed to compete with the iPhone.

There has been no official number given by Verizon on how many of the new handsets have been sold over the weekend. A representative from Verizon simply said that "we sold a lot," noting that the company has no intentions of releasing sales figures for individual phones.

It seems that if the Droid approached iPhone opening sales numbers, that Verizon and Motorola would happily divulge the figures. The iPhone 3GS, the newest version of the widely popular model, sold 1 million units on its opening weekend.

"We don't believe investors expected an iPhone-like launch but rather a first step in a cadence of products that will help bring Motorola's handsets out of the death spiral experienced during the past three years," Citi analyst Jim Suva wrote Monday.

Suva called the Droid sales "solid" based on a check with coastal stores in the U.S.

Verizon is planning to launch the largest ever marketing campaign in company history, with three new ads set to debut today. The ads will continue to focus on the company’s anti-iPhone sentiment.

With an operating system consumers are unfamiliar with, and a manufacturer that has seen troubled times in recent years, the Droid may need word of mouth to convince consumers to commit $200 plus a 2-year data-plan contract.

Verizon has also launched another of its highly-anticipated touch-screen handsets -- the Blackberry Storm 2. The Storm 2 follows its less than revered predecessor; however the Blackberry brand name does have a built-in audience that may draw sales away from the Droid.

Shares of Motorola are up about 0.67% to $8.95, while shares of Verizon are around $30.08, up 1.78% from Friday's close.

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