Credit: Shutterstock photoMotorola Mobility ( MMI ) recently released Q1 2011 results, and noted that a higher smartphone mix is bolstering average mobile phone pricing. The smartphone mix increased to 44% in Q1 2011 compared to 27% in the same quarter last year, and average mobile phone pricing accordingly jumped to $229 from $193 last year. This is a notable positive for Motorola Mobility, as the company has been consistently losing market share to rivals Apple ( AAPL ), Research in Motion ( RIMM ) and Nokia ( NOK ) in the mobile phone market.
We currently maintain $24.59 price estimate for Motorola Mobility stock , roughly in line with market price.
Pricing Improvement for Motorola Mobility
Motorola Mobility launched two new smartphones in the last quarter, bringing the total smartphone launches to 27 to date. The most notable smartphone launch in the last quarter was the Atrix 4G, which features a faster processor in addition to increased higher memory and storage capacity (see Does Atrix 4G Signify Turnaround for Motorola Mobility Fortunes? ). All in all, the company sold 4.1 million smartphones out of a total 9.3 million mobile phone sales in the last quarter, which raised the average price of phones sold.
Ever since Motorola Mobility introduced the Droid in late 2009, the company has consistently increased its smartphone mix. This has helped push average pricing from $130 in 2009 to $210 in 2010. We currently anticipate that average pricing will hit $241 for the full year 2011.
See our complete analysis for Motorola Mobility stock here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
