The new product turnaround at Motorola (NYSE: MOT) may already be crippled. One analyst, quoted by Bloomberg said, "The Razr 2 didn't set the world on fire and it won't be a phenomenon like the original one."

The cause of Motorola's problem with its newest product may be the Apple (NASDAQ: AAPL) iPhone, which appears to have sold more than two million units in the last quarter of 2007.

While the RAZR2 may be a better product than its predecessor, Apple, Nokia (NYSE: NOK), Samsung and Sony Ericsson have all introduced similar products to take advantage of the high-end multimedia handset space. Motorola may be squeezed out of a market it helped create.

With its shares trading just above $13, near a 52-week low, a weak fourth quarter earnings report could take the stock much closer to $10.

Douglas A. McIntyre is an editor at 247wallst.com.

Has iPhone killed the new Motorola RAZR2? originally appeared on BloggingStocks on Tue, 22 Jan 2008 10:15:00 EST. Please see our terms for use of feeds.