Hello Moto: LG’s Demise is Motorola’s Golden Opportunity

When you think of cell phones and history, one of the first companies that come to mind has to be Motorola. The name is an institution in the industry from the original flip phones in the 90s, to the dominance of the Razr, to the early days of Android with the Moto Droid lineup. The bat-winged logo has become iconic to people outside of the tech enthusiast bubble, mostly on the back of the success of the Razr. But in recent years, the company has experienced turmoil with multiple changes of ownership.

From selling to Google for a quick cup of coffee to now being owned by Lenovo, the Motorola story is an interesting one. Yet despite all of this turmoil, the company has quietly made strides to come back to relevance. The company is currently 4th in the US smartphone market share and making gains on the strength of its newest lineup of affordable handsets. This success might be on the cusp of increasing even more with the recent news that LG (the number three smartphone vendor in the US) will be pulling out of the phone business. Many companies have looked at LG’s exit as an opportunity, but no company may be in a better position to capitalize on this than Motorola.

Why Motorola is in the Best Position to Succeed

For as much maligned as LG was in the mobile space when it came to their flagships, there was always a segment that the company excelled in: low-end budget models at carrier stores. At every carrier store in the United States, there are bound to be numerous K Series and Stylo phones on display. These phones have always sold well on both prepaid carriers (Metro by T-Mobile, Cricket, etc.) and postpaid carriers (AT&T, T-Mobile, Verizon). Many people that use these phones have developed brand loyalty to LG (particularly Stylo owners). These customers are ones that are often overlooked by tech enthusiasts but can impact a companies bottom line more than most would imagine.

These customers are not comfortable buying phones unlocked and are always in search of the best possible value with their carrier. The importance of this price segment has been…