Motorola going beyond the Razr

Motorola executives pledged Friday to break the company out of its deep slump by rolling out a series of innovative new cell phones rather than a "one-hit wonder" like the Razr.

But embattled CEO Ed Zander, whose job may be on the line without a quick turnaround, and other leaders of the giant mobile phone maker had no new products to unveil at the company's annual analyst meeting in New York. They promised new product announcements next month.

On the defensive after a year of turmoil and subpar sales, Motorola's leaders said they continue to cut costs even with its share of the world handset market down to 14.6 percent from 21.9 percent a year ago, according to Gartner Inc.

Motorola's handset unit, its largest, has been struggling after more than two years of phenomenal Razr sales that fell off sharply starting last year. Earlier this year, the Schaumburg-based company warned its cell-phone segment will be unprofitable until at least 2008.

Motorola is in the process of introducing the Razr 2, although it is not expected to come near the success of the original phone.

The company has also disclosed plans to trim 7,500 jobs and $1 billion in costs as it tries to recover from a botched strategy of flooding emerging markets with lower-priced phones to gain market share.

RBC Capital Markets analyst Mark Sue said the situation at Motorola's much-beleaguered handset division is stabilizing.

"Don't expect a quick turnaround, however, and it will take some time for Motorola to regain its lost market share and improve its profitability," he wrote in a research note issued after the meeting. "Most of the new products are not expected to hit shelves until early 2008 and Motorola did not reveal anything earth-shattering."

Dave Novosel, an analyst for the Gimme Credit research firm, said in a report to investors "bloated costs are not the primary problem. The company needs to introduce compelling handsets, both in the U.S. and in foreign markets."

Zander said the mobile phone business is strong but avoided predicting when its unit will return to double-digit operating profitability. He said consistency has been the issue for Motorola.

"We've done it, we've been there," he said. "We've got to get back on it, and do it not for three years but 30 years."

Stu Reed, the new president of the mobile devices unit, suggested the company isn't looking for a single mega-hit. He said it relied too heavily on the Razr and paid a steep price when it declined in popularity.

"We will not ride one horse to the bitter end again," he said.

Chief Financial Officer Thomas Meredith said he hopes to cut in half the time it takes to receive parts from suppliers, assemble phones and get the products to consumers.

Motorola shares fell 29 cents, or 1.7 percent, to $17.13 in Friday trading -- down 17 percent this year.