Motorola's growing popularity with its upcoming Motorola Droid smartphone with Google's Android operating system may help increase the company's market share, but analysts warn this will largely affect rivals like Research In Motion and Palm.

Citigroup wireless analyst Jim Suva downgraded Palm and Research In Motion stock to a sell recommendation, while upgrading Motorola.

Motorola is launching of one of the most compelling offerings at [a] time when many investors have given up on the company’s handsets, Suva wrote in a research note, adding that it should crack open the enterprise door and create a promotion commotion.

Shares of Motorola were up nearly five percent in mid-day trading while shares of Palm were mostly flat and shares of RIM were down more than five percent.

Suva noted that phones using Android operating system are set to be a hit among corporate customers who are known to prefer RIM's BlackBerry devices. Suva says that Bring Your Own Device programs are starting to gain favor, in which employees are able to use their own devices on their corporate networks.

This is expected to benefit Android devices and its competitor, the Apple iPhone.

These programs lower the hardware costs of corporations by shifting the economic cost on the employee while at the same time enabling the employee the satisfaction and optionally of selecting cell phones of their choice, he wrote.

However, Apple's valuation remains untouched at Citigroup, suggesting the firm doesn't believe iPhone sales will be significantly affected by the Droid's arrival on the smartphone market.

Blackberry Electronics Android Citigroup