Design Duds Dent Motorola

But development of the Scpl platform has been delayed, and the timeframe for the introduction has been pushed out, say people familiar with the company.

A Motorola representative disputed the idea of possible Scpl-related delays, but said the company was working on a new multivendor approach to the line.

Early versions of the Scpl system, which features far fewer components and a thinner, more energy-efficient phone core, have been somewhat disappointing, say observers. For example, Motorola's low-cost, would-be blockbuster phone called the Motofone F3 was expected to be a big hit in rapidly expanding markets like India.

But the Motofone F3's display featured big block letters like those found on an alarm clock. Users of text messaging say the phone was fine for English readers, but useless for other languages. That's an odd mix, considering India is home to at least five languages.

The Motorola rep said the sales woes in India and other expanding markets like China stem from the company's refusal to match price cuts by competitors.

Observers say the new self-inflicted blunders aren't helpful when you are trying to get a new product cycle going.

"The Scpl wasn't going to be a big blockbuster like the sleek Razr or the StarTAC," says the buyside analyst, referring to the original folding phone, "but it was going to be a cool derivative of the Razr."