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RAZR Burned

The Motorola (MOT) Razr’s 12-quarter streak as the No. 1-ranked handset in the United States has finally been broken–by Apple, of all companies. According to a survey by NPD, the Razr V3 slipped to second place behind Apple’s (AAPL) iPhone 3G in the third quarter, apparently a victim of its own outdated design.

“The displacement of the RAZR by the iPhone 3G represents a watershed shift in handset design from fashion to fashionable functionality,” said Ross Rubin, director of industry analysis for NPD. “Four of the five best-selling handsets in the third quarter were optimized for messaging and other advanced Internet features.”

An interesting trend. Especially, since smartphones tend to be quite a bit pricier than their dumbphone counterparts. Indeed, AT&T (T), the iPhone’s exclusive carrier in the U.S., offers the device for $200 with a two-year contract, while it offers Motorola’s RAZR V3xx Platinum for $0.01.

Seems $200 beats free, or essentially free, even in the ugliest of economic times–as long as it’s emblazoned with an Apple logo.

News of Apple’s latest achievement comes just weeks after the company announced it had become the world’s third largest mobile phone supplier in terms of revenue.

Comments

  1. people want email on their phones and a easy touch screen

    razr was cool in 2004

    same thing with iphone…will it be cool in 2012?

    Posted by Sam Harrison at November 10th, 2008 at 3:37 pm
  2. Apple iPhone is the best phone in the market today. I love the app store and the phone works great. Apple continues to make great products. Of course they should be #1. I just wish there stock would reflect that.

    Posted by Quincy Davis at November 11th, 2008 at 6:49 am

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John Paczkowski has been poking fun at the tech industry and the personalities that drive it since 1997. From 1999 to 2007, he wrote the award-winning tech news Web log Good Morning Silicon Valley for the San Jose Mercury News, Silicon Valley's daily newspaper. Read more »

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