Sprint Nextel, Verizon Wireless tout rollout of Moto Razr2

Motorola Inc. is rolling the dice on a new version of its blockbuster Razr handset and its near-term fortunes may depend on achieving solid sales of the device.
Sprint Nextel Corp., Verizon Wireless and AT&T Inc. announced today plans to launch the Razr2, also known as the MotoRazr2 V9m, in the coming weeks. Sprint Nextel seems to have the jump on its larger competitor with plans to have the device available through its Web site and telesales on Aug. 22 at $250 with a two-year contract and in its retail locations by Sept. 4, while Verizon Wireless said it will launch the device in September at $300 after rebates.
The CDMA2000 1x EV-DO device includes a 2-megapixel camera, 2 gigabytes of onboard memory and a range of messaging options. The handset also offers Motorola’s CrystalTalk technology. Both carriers will also include access to their respective online music and content services.
Hot on the heels of the CDMA carrier announcements AT&T Mobility said it too would offer a GSM/GPRS/EDGE/UMTS/HSDPA version of the Razr2 beginning in September. The carrier, which was the initial launch partner for the original Razr, said the Razr2 would retail for $300 with a two-year contract.
How the Razr2 fares on the market will be the subject of intense interest, given that the original Razr handset has likely peaked in the market while remaining a hot seller at various prices, most well under $100 in the U.S. The Razr2 is built on the Razr platform, but the new version of the slim flip phone offers a number of advanced features such as a large, high-resolution internal screen.
“It’s obvious that Razr2 is Motorola’s anchor model in the second half of the year and that it has to move consumers,” said Tero Kuittinen of Avian Securities L.L.C. “Motorola doesn’t have to hit a home run, it just needs moderate sales. I think they can pull it off with support from Verizon and AT&T.”
“Motorola needs to show that the second quarter was the volume trough,” Kuittinen added. “A slight uptick in volumes in the third quarter would prove the worst is past.”
Kuittinen said this week that the improved screen might prove attractive to consumers interested in Verizon Wireless and AT&T Mobility’s content offerings. AT&T Mobility declined to comment on Kuittinen’s speculation on a Razr2 launch at the carrier.