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Neither Motorola nor Verizon has released any official sales figures for the handset yet, but according to RBC Capital Markets analyst Mark Sue, the companies have managed to sell between 700,000 and 800,000 Droid units in less than a month. Riding on the strengthening momentum, it seems very likely that the targeted 1-million mark will be achieved easily by the end of the year.

"Motorola, for its part, has done a good job on the production side, and our survey of over 100 stores indicates strong demand, limited stock outs, and very few returns." Sue wrote in his research note. Some Verizon Wireless stores, especially in major cities, are selling between 100 and 200 Droids per week since the launch, he added.

Motorola Droid is the second Android phone released by the cell phone maker, and is the first to run on the updated Android 2.0 software. Touting it as an iPhone rival, Verizon and Motorola have reportedly invested $100 million in its marketing campaign, including a series of TV commercials and nationwide billboard advertisements. The extensive campaign, though expensive, seems to be quite effective in pushing the sales, which is certainly a good news for both companies.

However, another Android-based handset of the vendor available from T-Mobile USA, the Motorola Cliq, does not enjoy the same success the Droid has since it has been troubled by poor battery life. Motorola has released a firmware update to improve its performance, but the sales have already been affected.

Still, analysts generally said Droid’s strong sales would probably cover Cliq’s setback. They are also optimistic about Droid’s performance during the holidays and see its foreseeable success as the first step in getting Motorola back into the game.