ATLANTA-Two months after it began selling the phone, Cingular Wireless L.L.C. has cut the price of Motorola Inc.’s iTunes-capable Rokr by $100. The carrier is now selling the device for $150 with a service agreement, down from an unsubsidized price of $250.
Motorola’s Rokr-the world’s first phone to work directly with Apple Computer Corp.’s iTunes digital music service-has generated a massive amount of interest within the wireless industry. The phone has come to represent the potential melding of the digital music and mobile-phone businesses. Cingular signed an agreement with Motorola to be the exclusive vendor of the Rokr in the United States for at least three months.
Motorola and Cingular unveiled the gadget in September with much fanfare and a massive advertising push, but reaction to the device has been mixed. Cingular initially introduced the device at an unsubsidized price of $250-a strategy it employed when it first began selling the Motorola Razr for $400 (the Razr now sells for $200). Such a strategy indicates Cingular thought the Rokr would be popular enough to sell at a higher, unsubsidized price. Although carriers routinely raise or lower the prices on their phones, that Cingular has lowered the price of the Rokr could indicate the phone isn’t selling as expected.
Cingular and Motorola generally don’t disclose sales of specific devices. A Cingular spokesman was not immediately available for comment.
In other Cingular handset news, Best Buy said it will sell the LG Electronics Co. Ltd. CD500 MP3 phone for $100 with a two-year service agreement.
Separately, T-Mobile USA Inc. will sell a magenta-colored Razr in time for Thanksgiving. Motorola is prepping a wide array of colored Razrs for the holiday shopping season.