Razr Gives Motorola A Christmas Edge

Investor's Business Daily reports that as the holiday season comes to an end, "Motorola looks like a winner." The big hit again driving Motorola's lead was the Razr due to "its sleek design and deep price cuts."

According to Piper Jaffray, it "expects 11 million Razr phones will be sold worldwide in the fourth quarter." American Technology Research analyst Albert Lin noted that some stores he has visited "are offering the Razr for free with two-year service contracts," and using the handset as an enticement to lure "people to switch carriers midcontract." He said, "With all the incentives (offered by T-Mobile and Cingular), the Razr has practically become free."

Lin wondered if the "Razr could be a double-edged sword for Motorola." He added, "Part of the (Razr's) appeal is its uniqueness. But Motorola's strategy is that this phone is going to become mainstream — or obsolete."