According to Bloomberg, a provider of market data, news and analytics, Motorola's iTunes music phone, developed with Apple and unveiled last month may not be performing as expected.
As many as six times more customers are returning the Rokr phones than is normal for new handsets, according to American Technology Research analyst Albert Lin, who said he talked to distributors, retailers and call center workers at Cingular Wireless LLC, which sells the phone in America.
Motorola Chief Executive Officer Ed Zander said he is disappointed with the phone's marketing and plans to fix it.
“We got off to a little bit of a rough start”, Zander said in an interview after Motorola reported on 18 October that third-quarter profit tripled, driven by more-popular phones such as the Razr. “People were looking for an iPod and that's not what it is. We may have missed the marketing message there".
The problem has been put under further strain with the iPod nano stealing the limelight. The ultra-small MP3 player that holds 10 times the amount of songs for half the price went on sale the same day.
In a previous statement, which was then receded Zander said "Screw the nano!" obviously showing his annoyance at Apple's double edged sword of giving the company the chance to be the first to launch an iTunes phone, but only at the same time as a popular announcement from the computer company.
However it might not be all gloom and doom. In an interview with Pocket-lint.co.uk, Carsten Schmidt, GM Regional Operators, Retail and Distribution Western Europe we asked him whether or not Motorola is planning to integrate the iTunes element into other phones?
"You will not be able to upgrade old phones with MP3 player compatibilities”, said Schmidt. “However we will be launching a series of phones to tailored around music".
Motorola sold 250,000 iTunes phones in the short time it was on sale for Motorola's last quarter compared to about 6.5 million Razr phones were sold during the entire quarter.
The news comes just when an internet group called The Malven Office has created a Windows based application for Motorola's main competitor, the Sony Ericsson Walkman phone, that allows you to transfer songs to the Phone-come-MP3 player.