Cingular & T-Mobile US Halt RAZR Sales
Filed in archive Mobile Commerce by tom on March 13, 2006
Motorola said only a limited number of phones were affected and the problem would have no ImpactCingular stopped selling the handsets on the 6th of March, with T-Mobile following on Wednesday. As analysts estimate that up to 15% of handset sales for both companies are the RAZR, time without sales of this device may affect market share.on its financial results. The Razr, lauded for its thin design, was first sold in late 2004 and is still a key product for Motorola.
One analyst, Ed Snyder of Charter Equity Research, said he did not expect a material impact from the problem but expressed concerns about how Motorola manages its suppliers. Another analyst said the halted sales may hurt the phone companies' market shares.
Motorola spokesman Alan Buddendeck said the faulty phones were sold to operators between Jan. 16 and Feb. 28, with the first of the U.S. shipments on Feb. 1. He did not say where else the phones were sold.
Motorola is still selling new Razrs and expects availability to return to normal by next week.
"Motorola and its customers are addressing a quality issue affecting a very limited number of Razr handsets sold for GSM networks," Buddendeck said in a written statement.
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