Pressed for New Product,
Motorola Sharpens Razr
Handset Maker Pins Hopes
On Still-Thinner Version
Of Ultra-Slim Cellphone
By ROGER CHENG and LI YUAN
May 16, 2007; Page B6...... WSJ
Seeking to revive its ailing handset business, Motorola Inc. yesterday announced the next generation of its popular and ultra-slim Razr cellphone.
Motorola
The Razr2 is two millimeters thinner than its predecessor.
The device, called "Razr2," boasts a slimmer frame, larger screen and improved call quality compared with its predecessor. In addition, the company showed off an array of multimedia devices and handsets that run the next-generation networks, although some of them had been on display at prior trade shows.
Chief Executive Ed Zander has been under increasing pressure to develop a product that will recapture the buzz the Razr once commanded when it dominated the industry. The company has sold nearly 100 million Razrs but has struggled to find a worthy successor.
Mr. Zander has decided to continue to push the line of devices inspired by the original hit, the Razr. "It's not just a product, it's a brand," he said, comparing it to BMW AG and Apple Inc.'s iPod.
1 SLIDESHOW
See a slideshow of Motorola's new models,2 including the successor to the Razr and its answer to Apple's iPhone.Some analysts aren't sure if the latest lineup can turn the Schaumburg, Ill., company's fortunes around. "I think the jury is still out whether they can sell a lot of these products and help the revenue upturn," says CreditSights analyst Ping Zhao.
Thomas Meredith, Motorola's interim chief financial officer, told financial analysts that the new products won't have much financial impact until the fourth quarter. Mr. Zander promised to bring the company back to profitability by the end of the year after it swung to a first-quarter loss.
Motorola's struggles have allowed its rivals such as Nokia Corp., Samsung Electronics Co. and Sony Ericsson to take share away from the world's No. 2 handset maker. Nokia raised its forecast for global market share in the second quarter to more than 36%, extending its lead over Motorola, which saw its market share dropping to 17% in the first quarter from 22% in the fourth quarter of 2006.
Yesterday, Motorola also talked about a new version of the Rokr music phone, which originally debuted in September 2005 as a partnership with Apple and its iTunes store. The initial version saw tepid reaction, but the company believes it can create a brand similar to Razr. The latest version features faster load times between the computer and the device. It will debut in May in the Asian market.
The company also discussed its "media monster" device, a unique kick-flip slider phone called Moto Z8. The phone uses a third-generation network, allowing for quick over-the-air downloads. The device can capture video at 30 frames per second, compared with the 24 frames at which 35mm movie cameras used to shoot video. "It's home cinema gone mobile," Mr. Zander said. The new handsets will be introduced in Asia and Europe, with three models available in the U.S. market in July. Motorola declined to disclose retail-pricing information, saying that is often up to the wireless carriers.
Write to Roger Cheng at roger.cheng@dowjones.com3 and Li Yuan at li.yuan@wsj.com4 |
