Google Acquisition May Boost Motorola Market Share, Says NPD Group

The recent acquisition of Motorola extended Google's patent portfolio, but it is also a great opportunity for the U.S.-based handset manufacturer to boost its market share.

According to NPD Group research company, Google’s Android operating system is currently dominating the U.S. smartphone market share, accounting for 52% of units sold in Q2.

However, while Android continues to consolidate its top position on the smartphone market, Motorola’s overall mobile phone market share declined 3% points, from 12% in Q2 2010 to 9% in Q2 2011.

Furthermore, Motorola's share of the smartphone market also dropped 3%, from 15% to 12%.

The company's year-over-year unit share of Android operating system sales halved from 44% in Q2 2010 to 22% in Q2 of 2011, as Samsung and LG both experienced substantial gains.

“Google’s acquisition of Motorola shifts the balance of power in the handset-patent conflict between Google and its operating system competitors. Android’s momentum has made for a large pie that is attractive to Motorola’s Android rivals, even if they must compete with their operating system developer,” said Ross Rubin, executive director of industry analysis for NPD.

It appears that Motorola has a chance to boost its sales in the prepaid smartphones area, NPD Group claims.

According to the research company, one in five new handsets acquired in Q2 was on a prepaid plan, and carriers offering prepaid mobile phones continued to grow their smartphone portfolios.

“Android is also leading the charge in the rapidly growing prepaid smartphone market. This was once a key segment for Motorola that the company has an opportunity to reclaim as prepaid carriers build their smartphone portfolios,” added Rubin.

Even though in Q2 2010 just 8 % of prepaid phones were smartphones, it appears that in Q2 2011 the number jumped to 22%, which offers Motorola a growing opportunity on this segment.