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Motorola Launches a BlackBerry Killer

By Anders Bylund – Updated Apr 6, 2017 at 11:48AM

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Wait, what? You mean we're not always gunning for the iPhone?

There are many ways to skin a cat.

In the smartphone market, we're used to watching handset makers go for the biggest, the fastest, the best with every new handset. The Apple (Nasdaq: AAPL) iPhone 4 is lightning-quick and sports the best screen you've ever seen. Verizon (NYSE: VZ) matches the iPhone blow for blow with the Droid X by Motorola (NYSE: MOT). HTC pushes high-end Android phones out to any network that wants one, while Google (Nasdaq: GOOG) squirrels away backstage to make the Android software better, faster, more capable. Meanwhile, a certain subset of the market is waiting patiently for upgraded BlackBerry smartphones from Research In Motion (Nasdaq: RIMM).

Processors get faster, screens get bigger with denser resolutions, and bigger is always better. Right?

Into this environment, Motorola sends a decidedly low-end new phone called the Charm. Destined for T-Mobile stores this summer, the Charm has a measly 2.8-inch screen and a mere 3-megapixel camera. It's small and light and looks a lot like a boxy cousin to the BlackBerry Curve. The few high-end features on board seem designed to fit the business user: noise-canceling speakers for a better speakerphone experience, and fortified support for corporate email collection.

This time, Motorola isn't shooting for the moon or the iPhone. The obvious target here is the BlackBerry. If Motorola is hitting the right notes here -- and that's what it looks like to me -- this thing could be a big seller: The rather comparable BlackBerry Curve 8520 currently sells at T-Mobile for an affordable $50 with a two-year contract, while Motorola itself should collect something closer to the full $280 sticker price per unit. That's well below the top-line Android phones, but its targeting an attractive niche that's underserved by current Android offerings.

One size doesn't fit all, no matter what Steve Jobs tells you. This charming little gadget will prove that point -- and cut a decent slice of BlackBerry pie for itself.

Fool contributor Anders Bylund owns shares in Google, but he holds no other position in any of the companies discussed here. Google is a Motley Fool Rule Breakers choice. Apple is a Motley Fool Stock Advisor selection. The Fool owns shares of Google. Try any of our Foolish newsletter services free for 30 days. You can check out Anders' holdings and a concise bio if you like, and The Motley Fool is investors writing for investors. Hello there, Infothathelp, how are you doing?

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Stocks Mentioned

Motorola Solutions, Inc. Stock Quote
Motorola Solutions, Inc.
MSI
$228.76 (-1.41%) $-3.26
Alphabet Inc. Stock Quote
Alphabet Inc.
GOOGL
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Apple Inc. Stock Quote
Apple Inc.
AAPL
$150.43 (-1.51%) $-2.31
Verizon Communications Inc. Stock Quote
Verizon Communications Inc.
VZ
$39.52 (-1.03%) $0.41
BlackBerry Stock Quote
BlackBerry
BB
$5.07 (-3.24%) $0.17

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