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Motorola, Inc. (NYSE: MOT) rolled out some new handsets yesterday, as the cellphone manufacturer seeks to regain some of the magic that its iconic RAZR handset generated in 2004. Up front and center is the new RAZR 2 handset, which is the sequel to the RAZR, the best-selling wireless handset of all time. It will be carrying quite a bit of weight on its shoulders when released this summer. Can it rescue Motorola?

The original Motorola RAZR sold 50 million units in a staggeringly short period of time -- although half of that time the phone was being given away for free with long-term wireless contracts. as the phone grew old and plunged down the product lifecycle slide. Initially, the RAZR was priced at nearly $500 with a wireless contract, and surely the RAZR 2 will start there as well. But while the older RAZR re-defined the cellphone industry in terms of chic and style, the sequel may not have that panache, although it is loaded with futuristic features while being even slimmer than its predecessor. Is that enough?

Motorola needs another winner to get its house in order and sell as many higher-price handsets as it can to return to consistent profitability. Trying to get customers to shell out another $500 for the sequel to the most successful cellphone ever is not going to be easy, but it's something Motorola must do. If it fails (and we're standing here next year at this time with just a few RAZR 2 sales), Motorola CEO Ed Zander may need to put his resume on Monster.com (NASDAQ: MNST), even if Carl Icahn can no longer lobby for his dismissal.

Can the RAZR 2 save Motorola? originally appeared on BloggingStocks on Wed, 16 May 2007 11:53:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>aEd ZanderEdZanderMNSTMOTMotoroMotorola RAZR 2MotorolaRazr2RAZR 2Razr2Wed, 16 May 2007 11:53:00 EST