Cingular and Verizon Compete to Sell Motorola RAZR

6:30 am on December 15, 2005 | Category: Business, Mobile Devices

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Cingular and Verizon, who both have contracts with Motorola to sell different models of the popular RAZR mobile phone, are in the midst of a heated price war this holiday season.

Cingular, which has been selling RAZR phones to its subscribers for over a year, has recently reduced their cheapest models to a mere $99, after rebates. This means that they’re losing a fair amount of money on the sale of handsets, which they purchase from Motorola at a cost of about $250.

Verizon has recently begun offering another $20 rebate on the much more advanced CDMA RAZR, bringing its price to just $179.

Both carriers are willing to take heavy losses on handset sales, in hopes of attracting more customers to their wireless networks.

This type of intense pricing competition is, of course, excellent news for consumers, but also a great Christmas present for Motorola. With the RAZR selling at record-low prices, it’s sure to attract a lot of buyers, and outsell they myriad of competing handsets that are currently on the market.

This just shows how success snowballs on itself, and how this effect is working for Motorola. After all, when you’re the manufacturer of America’s most popular handset, and have two huge wireless carriers competing to sell it, it’s pretty hard not to achieve record sales.

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    2 Comments »

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    1. i will liketo know when the phone was maufactured,and which countru did it,and i will love to own one,but cannot afford to pay all the cash once what do i do

      Comment by irene ifanse — December 16, 2005 #

    2. The RAZR phone is manufacturered by Mororola (an American company) and has been available for over a year now.

      The RAZR is a fairly advanced phone, so you’ll have to shell out a couple of hundred dollars if you want one. If this isn’t in your price range, you should check out some of the lower end models that are available at little or no cost through major cellular networks, and prepaid wireless services.

      Comment by Jeremy — December 16, 2005 #

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