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Will Consumers Buy More Expensive Cell Phones?

Boot Camp feature for Tuesday, March 8, 2005

Will consumers buy more expensive cell phones? Bloomberg Boot Camp, a report on today's technology. It has been one of the hottest selling cell phones around, Motorola's Razr….which gets its name from its razor thin design. And even though it has a list price of almost 400 dollars, the Razr helped Motorola regain the number two position in cell phone sales last quarter from Samsung. Motorola chief strategy officer Rich Nottenburg…

"If you look at the response to the product and the interest level in the product, it's phenomenal. I believe that it demonstrates what you can do when you lead with great products. It's a game changing type product." It's important to Motorola that this phone's a hit? "Absolutely. It's important because it creates the perception ..it creates a whole dynamic in the marketplace…that Motorola's back and Motorola's capable of bringing out great products."

Cingular Wireless has the Razr phones exclusively, but Nottenburg says similar phones will be available from other carriers. And Motorola will be delivering a phone this spring that will play digital music…syncing with Apple's iTunes software. The company still trails number one cell phone maker Nokia …which has been cutting prices to win back market share…

"I think Nokia's a very formidable competitor. They've got a very low cost structure. They've got a good platform strategy and I think that they'll be back with a vengeance."

But Nottenburg vows Motorola won't be standing still. Bloomberg Boot Camp, I'm Fred Fishkin.