Facing stiffer competition from its rivals' new products, Motorola
aggressively cut prices of its phones during the quarter, especially in emerging
markets, to gain market share but at the expense of profit margins. Executives
also acknowledged misjudging some markets and, as Zander put it, making wrong assumptions about how many products would sell at what price.
I think they just need a solid followup to the RAZR to compete in the high end phone market again. I mean they should still have the same design pros that came up with the RAZR on staff so they could probably do the trick. I think there is much more innovation and elegant design at Motorola then in their competitors. I think this will translate into higher margins in the long run. Of all the people that could create something to compete with the IPhone in the high end market MOT would be the one to do it.
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