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Motorola's Razr Cuts Both Ways

Slumping cellphone maker learns a lesson about putting all its eggs in one basket

By Sam Gale Rosen, Newser Staff

Posted Apr 27, 2007 9:08 AM CDT

(Newser) – Riding high on the success of its sleek Razr cellphone, Motorola got cocky and didn't come up with a suitable successor, the Wall Street Journal reports, and the misstep cost the company big bucks. While Motorola struggled to keep up with emerging technology and wrestled with management upheaval, competitors moved in and the company's stock slumped.

In a cutthroat market, rivals were developing third-generation (3G) phones with enhanced data and video capability, but Motorola had no new phone by late 2006. What's next? Carl Icahn is agitating for a seat on the board and has CEO Ed Zander in his sights. "The results up to now have been unacceptable," Icahn says.

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Motorola's Razr Cuts Both Ways