Verizon unveils DROID RAZR by Motorola, pre-orders begin October 27th for $299.99
Verizon Wireless announced the DROID RAZR by Motorola on Tuesday, a brand new Android 2.3.5 (Gingerbread) smartphone that will take advantage of the carrier's 4G LTE network.
Context & Ripple Effects
Motorola and Verizon have been filling the DROID range at distinct price points: the DROID 3 arrived at $199.99 in July, while the LTE-equipped DROID BIONIC launched at $299.99 in September. The RAZR extends the higher-priced LTE tier rather than leaving it to a single model.
A Motorola teaser and advance specifications preceded the announcement, indicating a coordinated carrier-and-handset launch rather than an unplanned addition to Verizon's lineup.
First-order effects
- Verizon gains another $299.99 Android handset for its 4G LTE network, with pre-orders scheduled to begin October 27.
- Motorola adds the DROID RAZR to a Verizon portfolio that already includes the DROID 3 and DROID BIONIC, giving buyers a new choice within the same carrier brand.
Second-order effects
- The DROID family is segmented more sharply by price and network capability: the $199.99 DROID 3 sits below two $299.99 offerings, raising the importance of product differentiation in Verizon's own sales channel.
- The RAZR's arrival puts pressure on the DROID BIONIC to distinguish itself despite sharing Motorola, Verizon, Android, LTE and the same listed price.
Third-order effects
- Verizon's handset strategy is moving toward using a carrier-branded device family to offer multiple Android tiers, rather than relying on a single flagship to represent its LTE service.
- If this lineup approach persists, Motorola's ability to differentiate devices inside Verizon's DROID range becomes as important as simply placing phones on the carrier's network.
The trend: Carrier-branded Android portfolios are becoming a tool for segmenting LTE buyers by device positioning and price within a single operator's lineup.