October 6, 2005

According to a recent analyst report from Piper Jaffray, initial shipments of Motorola's long-anticipated iTunes-capable phone appear somewhat sluggish.

The firm said its recent store checks show that some locations are recording strong sales of the device, but the majority see only weak demand for the Rokr.

"Our checks indicated mixed to negative reviews of the much-anticipated Rokr phone, with some stores indicating strong early sales, but more indicating disappointment in the product," wrote Piper Jaffray analyst T. Michael Walkley in a note to investors. The firm makes a market in Motorola securities.

Motorola's Rokr phone-which can store up to 100 songs from Apple Computer Inc.'s popular iTunes digital music service-hit Cingular Wireless L.L.C. store shelves earlier this month.

Industry had long awaited the phone's arrival; it represents the merging of the wireless and digital music industries. However, the phone largely fell short of expectations, with commentators giving the gadget only middling reviews.

Both Motorola and Cingular have been hyping the device with a major advertising campaign.

Despite the apparent lack of interest in the Rokr, demand for other Motorola products remains strong, according to Piper Jaffray's Walkley.

"Our checks indicated strong sell-through trends for Motorola phones," Walkley wrote.

Specifically, Walkley said Motorola's super-slim Razr device is selling well through Cingular and T-Mobile USA Inc., and its E815 is doing well with Verizon Wireless.

As for rival Nokia Corp., Walkley said the company's 6101 through T-Mobile and 6102 through Cingular are selling better than expected.

"While Nokia's U.S. share remains weak and our checks indicate poor trends with CDMA carriers, we believe Nokia's U.S. GSM market share has started to improve," Walkley wrote.

Source: RCR News