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Article

Title: Razr Sales: Price Declines Fueled Mega-seller

Author: Carson, Phil Article Type: Product Analysis
Source: RCR Wireless News, v25 n44 p1(2) Publication Date: Oct 30, 2006
  ISSN: 1533-0796
  Illustrations: Graphs
URL of Publication: http://www.rcrnews.com

The retail price of the Razr handset from Motorola Inc. has dropped dramatically over a two-year period. The price decreases have lured many new consumers at each price point, and in the process, over 50 million of the handsets have been sold. The Razr has prompted many imitation products and started its own line of successor devices. The best-selling Razr handset has revived Motorola and also put the vendor onto the leading edge of handset market, which is driven by design and style factors. The two-year run of Razr has also contributed to changes in how carriers in the United States market their services. The introduction of exclusive handset deals has added flair to the industry, and carriers are as likely to promote their handset designs as the quality of their networks. The Razr handset reminded the industry that a 'cool' product made chiefly for voice functionality can outdo any 'feature-packed' mobile device among consumers. The pricing approach instituted by Motorola has contributed to its gains in market share. It also represents a unique approach to a 'halo product' transformed into a true 'iconic' product. Industry analysts say the company's approach to the Razr handset was taken deliberately to develop a halo product that would enhance the Motorola image and attract attention to its portfolio of products.

Special Features: Graphs

Companies:
Motorola Inc

Products:
Pricing RAZR

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