Will a green phone ring up sales?

In the hotly competitive cellphone market, a small marketing edge can really help. A green edge is even better, with consumers worried about the state of the environment.

So it's not much of a surprise when a cell company — in this case, Motorola — reveals a new wrinkle in the green game.

It has launched a phone using plastics made out recycled water bottles. Moreover, the appropriately named Renew is also the world’s first carbon neutral phone, the company says.

It has cut a deal with Carbonfund.org so that the carbon dioxide produced to manufacture, distribute and operate the phone is offset by by investments in renewable energy sources and reforestation.

For Motorola, it's part of a recycling program that extends to a 22 per cent cut in the Renew's packaging size and the use of 100 per cent post-consumer recycled paper for the box and printed material. The company also includes a postage-paid recycling envelope so buyers can return their previous phone for recycling.

It's all good green, but what does it mean for business? According to a report from
MultiMedia Intelligence, Motorola is going to lose its spot as the No. 1 handset seller in the United States this year.