Motorola cutting new phones from RAZR’s cloth

Still high on the success of its MOTORAZR mobile handset, Motorola Inc. is unveiling some new units that the firm hopes will be as popular. But since the RAZR’s launch in 2004, the handset industry has undergone some changes that could upset Motorola’s expectations. At a Toronto media event in early October, Motorola spelled out the features of its latest devices: the MOTOKRZR (pronounced "craze-er") and the MOTORIZR. The KRZR is a clamshell phone like the RAZR, but it’s slimmer, addressing the concern of some users that the RAZR’s ultra-wide colour screen made for a somewhat awkward form factor. "Some people thought the proportions of the RAZR were too thin and too wide," noted Peter Pfanner, the Chicago-based director of Motorola’s North America design studio. The KRZR includes Bluetooth, a music player, a 1.3- or 2-megapixel camera (the former on the K1m version for CDMA networks, the latter on the K1 version for GSM) and GPS. The RIZR has approximately the same dimensions as the KRZR, but it’s a slider form factor instead of a clamshell – the user pushes the front cover up to reveal the keypad. The RIZR has a 2-megapixel camera that works when the keypad’s not showing, so the user can hold the phone like a traditional digital camera to snapshots. Motorola hopes to capitalize on its past success with these variations on the RAZR theme, but it won’t be easy. Kathleen Finato, senior director, North America marketing, pointed out that the RAZR started life as a high-priced, niche product designed primarily for cutting-edge users. Motorola eventually decided to take a chance and position the handset for the mass market instead; Motorola has since sold 50 million RAZRs the world over, but success wasn’t guaranteed. "We placed some big bets," Finato said, adding that Motorola would continue to push the envelope. She said the new phones, as well as some new marketing messages designed to connect with consumers’ personal senses of style and individuality would play into that goal. But times have changed since Motorola launched the RAZR. For one thing, the mobile handset market is at least one manufacturer richer than it was in 2004 – Pantech Wireless Inc. has started selling its own name-brand handsets in Canada (RoW, Sept. 21/06). As well, Canada’s wireless penetration rate – the number of Canadians who own phones – is now more than 50%, and those left on the non-wireless side of the fence are unlikely to change their minds about cell phone ownership. Handset makers are doing all they can to entice consumers into using their wares. For Motorola’s part, the firm is trying to further the notion that handset features are fundamentally lifestyle choices that consumers can use to indicate their preferences and tastes. For instance, company representatives described the KRZR and the RIZR as devices for the young and stylish equipped with accessories such as Bluetooth transmitters and stereo headsets. They can essentially transform the MP3-playing phones into veritable audio systems, capable of connecting a user to his music in many ways including through headphones and the home stereo system. As well, Motorola demonstrated its already-established MOTOQ as a business-class device capable of displaying all sorts of documents, and capable of connecting to a portable printer should the user want a paper copy of the document displayed on the screen. The target audience here: business users on the go and power-consumers who like to stay connected all the time. Telus Corp. and Bell Mobility currently offer the Q. Motorola said RIZR would be available in 2007 and KRZR in the next couple of months, but the manufacturer didn’t say which service providers would offer the handsets. Rumours on the Internet say Rogers will offer the KRZR before 2006 is done.Motorola is touting the idea of "seamless mobility" as its mantra. The company suggests that features such as Bluetooth connectivity, the ability to receive emails while on the go, and deep PC synchronization will free users from having to excuse themselves from tasks just because they’re not at their homes or offices. Despite the high profile that fixed-mobile convergence is getting around the world, Motorola’s executives didn’t mention FMC at the media event. The concept is supposed to bridge various networks so users can hop from Wi-Fi to GSM without losing the connection. Motorola is considered a pioneer in this space, having teamed up with business phone-system maker Avaya Inc. to develop an FMC platform for businesses (RoW, Jan. 25/06). Motorola also recently demonstrated its FMC prowess in France with the help of partner France Telecom. Back at the Toronto event, Motorola also had on hand its relatively simple MOTOFONE. Made for "emerging" markets such as parts of Africa and India, the FONE has no music player and no camera. Its screen displays black characters on a grey background, and its ringtones are decidedly monophonic. According to Michael Hortie, president of Motorola Canada Ltd., the handset will cost carriers less than $50. Research from Info-Tech Research Group’s Indaba division indicates that a substantial number of Canadian buyers would be interested in something like the MOTOFONE (RoW September 8, 2006). But Hortie couldn’t promise that the FONE would come to Canada. "Possibly, depending on the carriers’ desire to do so," he said, adding that Canadian network operators are considering carrying it, but for the most part Canadians are used to more features than the FONE offers. "Certainly there’s an interest from the pricing perspective, but…it’s up to ."

Motorola cutting new phones from RAZR’s cloth

News | 10/20/2006 4:00 am EDT

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