Chapter 2 Media Article
"Pretty in Pink", The Economist - November 3, 2005
Motorola's sleek RAZR V3 mobile phone, currently the bestselling phone in America, has significantly helped the company's economy. In the past third quarter of this year, 6.45m of its 38.7m handset sales worldwide were of the RAZR V3. Available in silver, black, and pink, the RAZR is quickly becoming an icon, next to the iPod. However, not all of Motorola's phones are this successful. Take its ROKR music phone for example. It is quite big and looks rather unattractive. Even the RAZR itself is a little dissapointing with its second-rate camera and menu system. Being an early leader of "third generation" (3G) phones, Motorola has fallen behind. Will Motorola be able to follow up on its success of the RAZR? They plan to manufacture more RAZR and a 3G version of it, along with two new phones. Seeing how big of a success the RAZR is, Samsung and LG of South Korea have manufactured their own versions of the Motorola RAZR V3 handsets. But as quoted by Carolina Milanesi, a consultant, is that when everyone starts to do it, you lose the edge.
Relation to Chapter 2 - demand and supply
The introduction of the Motorola RAZR V3 has greatly increased Motorola's sales. Their RAZR is in high demand, resulting in Motorola having decided to increase the supply of it. Meanwhile, Samsung and LG have already produced their own RAZR-like handsets, creating competition and more substitutes of the RAZR V3. With the Motorola RAZR not being absolutely perfect, it is quite possible for comsumers to buy the Samsung and LG versions instead. If that happens, then there would be a shift to the left in the demand curve of the Motorola RAZR, and the supply will likely follow. Eventually, as time wears on and more newer models come out, cellphones will decrease in value as they have been out in the market for a longer period of time - with the RAZR being no exception. Soon, the quantity supplied of the RAZR would decrease also.
Motorola's sleek RAZR V3 mobile phone, currently the bestselling phone in America, has significantly helped the company's economy. In the past third quarter of this year, 6.45m of its 38.7m handset sales worldwide were of the RAZR V3. Available in silver, black, and pink, the RAZR is quickly becoming an icon, next to the iPod. However, not all of Motorola's phones are this successful. Take its ROKR music phone for example. It is quite big and looks rather unattractive. Even the RAZR itself is a little dissapointing with its second-rate camera and menu system. Being an early leader of "third generation" (3G) phones, Motorola has fallen behind. Will Motorola be able to follow up on its success of the RAZR? They plan to manufacture more RAZR and a 3G version of it, along with two new phones. Seeing how big of a success the RAZR is, Samsung and LG of South Korea have manufactured their own versions of the Motorola RAZR V3 handsets. But as quoted by Carolina Milanesi, a consultant, is that when everyone starts to do it, you lose the edge.
Relation to Chapter 2 - demand and supply
The introduction of the Motorola RAZR V3 has greatly increased Motorola's sales. Their RAZR is in high demand, resulting in Motorola having decided to increase the supply of it. Meanwhile, Samsung and LG have already produced their own RAZR-like handsets, creating competition and more substitutes of the RAZR V3. With the Motorola RAZR not being absolutely perfect, it is quite possible for comsumers to buy the Samsung and LG versions instead. If that happens, then there would be a shift to the left in the demand curve of the Motorola RAZR, and the supply will likely follow. Eventually, as time wears on and more newer models come out, cellphones will decrease in value as they have been out in the market for a longer period of time - with the RAZR being no exception. Soon, the quantity supplied of the RAZR would decrease also.
posted by Susanna Cho at
3:41 p.m.
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