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Motorola Pulls Plug on V295 Camera Phone

According to Retuers — Motorola Inc. on Tuesday said it killed the launch of a camera phone model for the Chinese market, underscoring the company’s struggles in the hot-selling segment.

Motorola, the world’s second-largest cell phone maker behind Finland’s Nokia, said the V295 phone was not needed and demand would be met in China by two other camera models it already offers, the A760 and E365.

“We killed the program,” Motorola spokesman Alan Buddendeck told Reuters. “Any company, you make strategic decisions about how you’re going to manage the products you bring to market.”

Camera phones — cell phones with integrated digital cameras that consumers can use to snap and send pictures to friends — are the hottest part of the global handset market. However, Motorola has had delays in rolling out some models.

Some analysts rejected the company’s explanation, saying the new phone went through costly research and development, and quality testing. They said it was more likely a technical or competitive issue that killed the launch.

“It doesn’t make a lick of sense because it’s an expensive way of planning your product line,” Charter Equity Research analyst Edward Snyder said of the decision to kill the product weeks before its scheduled launch. “These decisions are normally made on the drawing board before any investment in product.””

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