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Sunday, October 23, 2005

Motorola's iTunes Phone Gets Off to `Rough Start'


As many as six times more customers are returning the Rokr phones ( Motorola's iTunes Phone ) than is normal for new handsets, according to American Technology Research analyst Albert Lin, who said he talked to distributors, retailers and call center workers at Cingular Wireless LLC, which sells the phone.

Motorola Chief Executive Officer Ed Zander said he is disappointed with the phone's marketing and plans to fix it.

``We got off to a little bit of a rough start,'' Zander said in an interview after Motorola reported on Oct. 18 that third- quarter profit tripled, driven by more-popular phones such as the Razr. ``People were looking for an iPod and that's not what it is. We may have missed the marketing message there.''

Zander said the Schaumburg, Illinois-based company didn't make it clear enough that the Rokr stores fewer songs than an iPod. The phone holds 100 songs and costs $249.99 with a two-year contract from Cingular. The iPod Nano, introduced the same day, holds 1,000 songs and costs about the same.

Source : Bloomberg

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