Monday, October 24, 2005

Motorola's ITunes Phone May Flop as Handset-Return Rates Soar

Bloomberg reports that the Motorola Rokr music phone may be a flop. According to American Technology Research analyst Albert Lin, "as many as six times more customers are returning the Rokr phones than is normal for new handsets. Lin said, "There's an overall disappointment with the product."

The Rokr is not the only music phone in Motorola's plans. Lin added, "ITunes is a small subset of Motorola's music strategy. As far as their financial focus, they're much more interested in other devices, and by the end of the year, it's iRadio that's going to be front and center."

Paul Sagawa at Sanford C. Bernstein & Co. said, "Beyond the flash of the iPod name and the newly proud Motorola marketing machine, you'd be hard-pressed to say the Rokr is a good product."