whiskey7
11-16-2005, 10:52 AM
This article is from The Economist Magazine---
Motorola
Pretty in pink
Nov 3rd 2005
From The Economist print edition
What the success of the RAZR says about Motorola's fortunes
RAZORS can be dangerous, even deadly. But Motorola's sleek, sexy RAZR V3 mobile phone has given the company's health a much needed boost. The world's second largest handset-maker has just announced bumper results, thanks in large part to the success of the RAZR, which is currently the bestselling mobile phone in America. Motorola sold a record 38.7m handsets worldwide in the third quarter of this year, lifting its market share to 19%. One in six of those was a RAZR, which is available in silver and black and, from this week, in pink too (a colour previously available only to celebrities such as Maria Sharapova, a tennis star). With its close resemblance to a flip-open “Star Trek” communicator, the RAZR is on its way to becoming an iconic gadget, next to the iPod and the BlackBerry. It is great news for Motorola, which was going through a difficult patch until the arrival of its new boss, Ed Zander, last year.
By revitalising the company's employees, drawing in new customers and boosting Motorola's brand, “the RAZR is a demonstration of what this company can do,” says Richard Nottenburg, Motorola's chief of strategy. And by highlighting how Mr Zander has turned around Motorola's reputation for clunky design and slow, spotty execution, the RAZR “has been a symbol of all the things we have done right in the past 18 months”. Although the RAZR was in development before Mr Zander arrived, says Mr Nottenburg, he “got this party started” by championing the product.
But you can also make the case that Motorola's revival does not extend much beyond the RAZR. Motorola's other phones still look clunky in comparison. Its much-hyped ROKR music phone, made in conjunction with Apple, is regarded as a disappointment. And having been an early leader in “third generation” (3G) phones, Motorola has since fallen behind. Even the RAZR itself, once you open its slimline case, is let down by its cheesy menu system and second-rate camera. Meanwhile, two rival handset-makers, Samsung and LG of South Korea, have each cooked up their own RAZR-like handsets. The sincerest form of flattery, says Mr Nottenburg. But the risk, says Carolina Milanesi of Gartner, a consultancy, is that “when everyone starts to do it, you lose the edge.”
The big question, then, is whether Motorola can follow up on the success of the RAZR. Mr Zander's plan is simple: “more RAZR”. A 3G version is on the way, along with two new phones, the slimline SLVR and the curvy PEBL. The RAZR Q, a BlackBerry-like device with a keyboard, is due next year. “We have a very good product pipeline,” says Mr Nottenburg. But Ms Milanesi is unconvinced. Motorola still has quality and execution problems to sort out, and the PEBL, announced in February, already looks dated, she says. So whether the RAZR is a symbol of Motorola's resurgence or a one-off hit remains to be seen.
Motorola
Pretty in pink
Nov 3rd 2005
From The Economist print edition
What the success of the RAZR says about Motorola's fortunes
RAZORS can be dangerous, even deadly. But Motorola's sleek, sexy RAZR V3 mobile phone has given the company's health a much needed boost. The world's second largest handset-maker has just announced bumper results, thanks in large part to the success of the RAZR, which is currently the bestselling mobile phone in America. Motorola sold a record 38.7m handsets worldwide in the third quarter of this year, lifting its market share to 19%. One in six of those was a RAZR, which is available in silver and black and, from this week, in pink too (a colour previously available only to celebrities such as Maria Sharapova, a tennis star). With its close resemblance to a flip-open “Star Trek” communicator, the RAZR is on its way to becoming an iconic gadget, next to the iPod and the BlackBerry. It is great news for Motorola, which was going through a difficult patch until the arrival of its new boss, Ed Zander, last year.
By revitalising the company's employees, drawing in new customers and boosting Motorola's brand, “the RAZR is a demonstration of what this company can do,” says Richard Nottenburg, Motorola's chief of strategy. And by highlighting how Mr Zander has turned around Motorola's reputation for clunky design and slow, spotty execution, the RAZR “has been a symbol of all the things we have done right in the past 18 months”. Although the RAZR was in development before Mr Zander arrived, says Mr Nottenburg, he “got this party started” by championing the product.
But you can also make the case that Motorola's revival does not extend much beyond the RAZR. Motorola's other phones still look clunky in comparison. Its much-hyped ROKR music phone, made in conjunction with Apple, is regarded as a disappointment. And having been an early leader in “third generation” (3G) phones, Motorola has since fallen behind. Even the RAZR itself, once you open its slimline case, is let down by its cheesy menu system and second-rate camera. Meanwhile, two rival handset-makers, Samsung and LG of South Korea, have each cooked up their own RAZR-like handsets. The sincerest form of flattery, says Mr Nottenburg. But the risk, says Carolina Milanesi of Gartner, a consultancy, is that “when everyone starts to do it, you lose the edge.”
The big question, then, is whether Motorola can follow up on the success of the RAZR. Mr Zander's plan is simple: “more RAZR”. A 3G version is on the way, along with two new phones, the slimline SLVR and the curvy PEBL. The RAZR Q, a BlackBerry-like device with a keyboard, is due next year. “We have a very good product pipeline,” says Mr Nottenburg. But Ms Milanesi is unconvinced. Motorola still has quality and execution problems to sort out, and the PEBL, announced in February, already looks dated, she says. So whether the RAZR is a symbol of Motorola's resurgence or a one-off hit remains to be seen.