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NEW YORK—In a note to investors this week, CIBC World Markets analyst Ittai Kidron wrote that LG Electronics Co. Ltd.’s Chocolate phone has “challenged” the dominance of Motorola Inc.’s Razr, though actual sales of LG’s much-touted handset have been “somewhat disappointing.” Ultimately, according to Kidron, Motorola will meet its own sales targets for the United States market for the quarter.
Kidron wrote that Verizon Wireless has aggressively marketed the Chocolate while putting less marketing muscle behind the Razr, which has been on the market for about two years. The analyst wrote that shipments from LG to Verizon Wireless have been “on pace” at 400,000 to 500,000 units per month beginning in mid-August, although the actual retail sales of the Chocolate were below expectations.
A representative from LG was not immediately available to comment on the research note.
CIBC’s Kidron remained bullish on Motorola’s third-quarter prospects, noting that the vendor’s sales of expensive phones in the United States and China bode well for earnings.
