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Verizon Looks to Lift Trendiness of Phones

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Old 10-19-2007, 07:20 AM   #1
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Verizon Looks to Lift Trendiness of Phones

Verizon Looks to Lift Trendiness of Phones

New Lineup Tries To Blunt the Buzz From Hyped iPhone



By ROGER CHENG
October 3, 2007; Page D9

NEW YORK -- Verizon Wireless, known more for the quality of its network than the trendiness of its cellphones, is hoping to nab some buzz with a lineup of devices that include iPhone-like touch-screen technology.

Wireless carriers, more than ever, are pushing the cool factor of their devices after AT&T Inc. and Apple Inc. raised the bar with the much-hyped iPhone. Verizon Wireless's unveiling of devices that won't be out for several weeks -- something it rarely does -- and touch-screen technology featured on two of the four new phones suggest the iPhone is putting pressure on the industry.

"It's a reaction to the market realities that the most desirable consumers are looking to do more with their phones than just talk," said Avi Greengart, an analyst at Current Analysis. "They don't want to lose subscribers to AT&T and the iPhone."

Verizon Wireless's new lineup boasts several eye-catching devices. Of note is the LG Electronics Inc. Voyager, which has a large touch screen similar to the iPhone but folds out laterally like the LG EnV to reveal a second screen and keyboard.

"There's no question the Voyager and the iPhone are chasing the same customers," Mr. Greengart said.

Joe Saracino, a marketing executive for Verizon Wireless, said it would be "cheaper than that other touch-screen phone," referring to the $399 iPhone.

The LG Venus is a slider phone with two screens: a traditional main viewing screen and a second smaller touch screen with virtual controls.

The Voyager and Venus immediately call to mind comparisons with the Apple device. But Mr. Saracino said that both of the devices were in development before Apple made its initial unveiling early this year.

From Samsung Electronics Co. Ltd. is the Juke, a stick-like music-centric phone geared toward teenagers. At about $100, it is designed as an entry-level device comparable to Sprint Nextel Corp.'s Upstage or AT&T's Sony Ericsson phones.

The Juke will hit stores in a few weeks, while the other devices will slowly come out in the following weeks after that. Aside from the Juke, no detailed pricing information was available. Mr. Saracino said rebates would be available with long-term contracts.

Also in the lineup is Research in Motion Ltd.'s latest Blackberry Pearl, a consumer-focused e-mail device that was successful for Deutsche Telekom AG's T-Mobile USA.

Mr. Greengart said the lineup looked impressive. "They may not pull away subscribers from their rivals, but they should keep Verizon subscribers happy," he said.

Verizon Wireless, jointly owned by Verizon Communications Inc. and Vodafone Group PLC, unveiled the phones early because it wanted to make their presence known as customers enter the holiday season, Mr. Saracino said. "We've been asked by customers for years to let them know what's coming out," he said.

The carrier has in the past been known for its serviceable, if uninspiring, selection of phones. Verizon was several years behind in getting Motorola Inc.'s Razr to its customers.

Both Verizon Wireless and Sprint have traditionally lagged behind in cellphone styles because the technology they operate on, CDMA, or code division multiple access, differs from what most of the world uses, GSM, or global system for mobile communications. As a result, handset makers put more of their resources into making a wider variety of GSM phones because of the larger potential market.

The leaner selection hasn't hurt Verizon Wireless, which garners customers' loyalty through the strength of its network. According to a study by J.D. Power and Associates, Verizon Wireless had the fewest reported phone problems in the widest region of the U.S. But with AT&T's network quickly improving, Verizon Wireless may be feeling to heat to step up its phone selection.

The carrier has recently done a better job with its offerings. The LG Chocolate, exclusive to the carrier, has been a hit. It also pushed a number of devices with unique factors utilizing its V-Cast Mobile TV service.




Source: WSJ
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