Verizon Wireless tout rollout of Moto Razr2

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Verizon Wireless tout rollout of Moto Razr2


By Phil Carson
Story posted: August 10, 2007 - 1:38 pm EDT

Motorola Inc. is rolling the dice on a new version of its blockbuster Razr handset and its near-term fortunes may depend on achieving solid sales of the device.

Both Sprint Nextel Corp. and Verizon Wireless announced today plans to launch the Razr2, also known as the MotoRazr2 V9m, in the coming weeks. Sprint Nextel seems to have the jump on its larger competitor with plans to unveil the device on Aug. 22 at $250 after rebates, while Verizon Wireless said it will launch the device in September at $300 after rebates.

The CDMA2000 1x EV-DO device includes a 2-megapixel camera, 2 gigabytes of onboard memory and a range of messaging options. The handset also offers Motorola’s CrystalTalk technology. Both carriers will also include access to their respective online music and content services.

The Razr2 may well launch soon at AT&T Mobility and in Europe, according to analyst Tero Kuittinen of Avian Securities LLC, who said as much in his RealMoney.com column earlier this week. Motorola said in May that it would also roll out GSM and HSDPA versions of the Razr2. Most of the top-tier handset vendors are expected to launch attention-grabbing handset models this fall as well, the analyst said.

How the Razr2 fares on the market will be the subject of intense interest, given that the original Razr handset has likely peaked in the market while remaining a hot seller at various prices, most well under $100 in the U.S. The Razr2 is built on the Razr platform, but the new version of the slim flip phone offers a number of advanced features such as a large, high-resolution internal screen.

“It’s obvious that Razr2 is Motorola’s anchor model in the second half of the year and that it has to move consumers,” Kuittinen said. “Motorola doesn’t have to hit a home run, it just needs moderate sales. I think they can pull it off with support from Verizon and AT&T.”

“Motorola needs to show that the second quarter was the volume trough,” Kuittinen added. “A slight uptick in volumes in the third quarter would prove the worst is past.”

Kuittinen said this week that the improved screen might prove attractive to consumers interested in Verizon Wireless and AT&T Mobility’s content offerings. AT&T Mobility declined to comment on Kuittinen’s speculation on a Razr2 launch at the carrier.