Can the RAZR 2 Bring Motorola Back?
It's no secret that Motorola has been struggling in recent years since demand for its iconic RAZR phone has faded. The company posted a first quarter loss this year, and does not expect to be profitable in 2007. But Motorola is hoping to change its fortunes with the RAZR 2, which goes on sale this month.
The RAZR 2 V9 will be offered by AT&T while the CDMA V9m will be sold by Verizon, Sprint and Alltel. Because the V9 supports EVDO and HSDPA 3G networks, T-Mobile is not on the initial list of RAZR 2 carriers, but it could carry the V8 model that only supports EDGE networks.
From a design perspective, the RAZR 2 carries a look similar to the original RAZR and its updated variants like the KRZR - with minor updates. The casing is now steel and glass instead of plastic, and the phone is slightly thinner than its predecessor. The RAZR 2's high-resolution display also offers on-screen touch controls, although not as extensively as Apple's iPhone.
A new CrystalTalk feature will help the user place calls in noisy environments by automatically adjusting volume. Voice technology has been added to speak what is on the screen, and Windows Media Player is included for playing music files. The browser on the RAZR 2 will also support full HTML to view standard Web pages.
Motorola gave carriers a fair bit of leeway when it comes to branding, meaning the touch controls and screen designs will vary. But the RAZR 2's 2-megapixel camera, microSD memory expansion slot, Windows Media Player 11 software, and USB 2.0 syncing will be standard across all versions.
The big question that remains is whether the RAZR 2 will be enough to bring Motorola back into black. Increasing competition from Nokia, Samsung, LG and now Apple have reversed Motorola's position as market leader when it comes to style and technology. In fact, many consumers see the company's phones as dated, and the RAZR 2 isn't that big of a departure from 3 year-old designs.
Motorola also trails its competitors by a large margin when it comes to shareholder returns. Since Ed Zander became CEO in 2004, shareholders have only seen a return of 13.5 percent, leading to calls for his resignation by some big Motorola investors. Nokia shareholders have seen a return of 37.8 percent during the same period.
Pricing for the RAZR 2 V9 and V9m is expected to be around $249 USD with 2-year control.
