Motorola unveils new wireless phones for 2003

Zardon · Jan 8, 2003, 07:10 PM

CHICAGO (REUTERS) - Motorola Inc., the world's second-largest mobile telephone maker, on Wednesday introduced seven new models offering sleek designs and features like large color screens, fast-action games and integrated cameras meant to lure customers and gain market share.

The Chicago area-based company's Personal Communications Sector, which makes the cell phones, said at its product showcase event in Shanghai that five of the phones will be rolled out globally while two will be sold in Asia only. The event was held on the 20th anniversary of Motorola's introduction of the first cell phone.

"Color is a big part of our portfolio," Steve Lalla, Motorola's director of global product marketing, told Reuters in a telephone interview. "When you look at these products, design screams out in almost every one of them."

All of the new phones are based on Global System for Mobile Communications (GSM), the world's dominant wireless network standard. Motorola will introduce an unidentified number of additional phones the rest of 2003, including some based on Code Division Multiple Access, the second most popular network standard used in Korea, United States, China and India.

Color and style may not be enough, however, as analysts said Motorola needs to cut costs further, stop being overly aggressive on pricing and deliver phones to market when promised, all while trying to boost a static market share.

Motorola still trails the market on many features, including offering a cell phone with an integrated camera or a personal digital assistant (PDA), said Deutsche Bank analyst Brian Modoff, who has a "sell" rating on the stock.

"I don't know that they can claim the cutting edge, but they can certainly say they're a much better phone company," said Modoff, who does not own Motorola stock. Deutsche Bank has done banking work for the company in the past.

Motorola's flagship phone this year will be the V600, a clamshell-type phone with a large color screen, integrated camera, photo messaging feature and the ability to connect to headsets cordlessly through a technology known as Bluetooth.

Last year, Motorola made a splash with its sleek V70 phone, which had a unique rotating cover. Many of the new phones are enhancements of products launched last year.

The V600, which can fit in the palm of a hand, will cost about $300 and will be available in the third quarter in time for the holiday season.

Motorola has said in the past that it aims to have 25 percent of the global cell-phone market over the long term, compared with its 14.4 percent share at the end of the third quarter, according to research firm Gartner Dataquest. Motorola was above 15.5 percent in the previous two quarters.
The company has done well on its handset designs in the past year, one analyst said.

"From a design perspective, Motorola has done amazingly well. They've been very un-Motorola. It's been good," said the analyst, who asked not to be identified. "It's something that had been a weakness for them since they lost their market dominant position."

While Motorola may soon seize the U.S. sales crown from Finland's Nokia, it will be hard pressed to maintain its dominance in China and Europe, which have been very hard markets for it, the analyst said.

Lalla said Motorola is aiming to become the second largest cell-phone player in Europe from No. 3, take the top spot in the United States, and maintain its lead in China and Canada.

However, while Motorola has gained in individual markets, its global market share has recently stagnated as rivals also introduce phones packed with color and features.

The company also will offer the C350, a next-generation version of its current low-end phone, at a price slightly above $100. The model, due out this quarter, is targeted at teens and youths, and will initially be sold in Asia.

In addition, Motorola will roll out two mid-tier phones in the $200 to $300 range. The T725 is designed to be compatible with EDGE (Enhanced Data for GSM Evolution), an advanced version of GSM that offers high-speed Internet access. The other, the 388c, is a phone combined with a PDA.

Both are next-generation versions of current models. The T725 is expected to roll out in the third quarter, most likely in the Americas initially. The 388c phone is expected in the current quarter, probably first in Asia.

Motorola said its top of the line phone in 2003 will be a phone that combines a large display, integrated video and still camera, MP3 player, PDA and video conferencing. The A835 will cost more than $450 or $500 and will go on sale in the third quarter, likely in Europe first.

It also plans to offer two new phones in Asia in the third quarter, priced $200 to $250 and aimed at younger consumers.

Jan 8, 2003, 07:10 PM	#1
Zardon DriverHeaven Founder Join Date: May 2002 Posts: 32,480 Rep Power: 177	Motorola unveils new wireless phones for 2003 CHICAGO (REUTERS) - Motorola Inc., the world's second-largest mobile telephone maker, on Wednesday introduced seven new models offering sleek designs and features like large color screens, fast-action games and integrated cameras meant to lure customers and gain market share. The Chicago area-based company's Personal Communications Sector, which makes the cell phones, said at its product showcase event in Shanghai that five of the phones will be rolled out globally while two will be sold in Asia only. The event was held on the 20th anniversary of Motorola's introduction of the first cell phone. "Color is a big part of our portfolio," Steve Lalla, Motorola's director of global product marketing, told Reuters in a telephone interview. "When you look at these products, design screams out in almost every one of them." All of the new phones are based on Global System for Mobile Communications (GSM), the world's dominant wireless network standard. Motorola will introduce an unidentified number of additional phones the rest of 2003, including some based on Code Division Multiple Access, the second most popular network standard used in Korea, United States, China and India. Color and style may not be enough, however, as analysts said Motorola needs to cut costs further, stop being overly aggressive on pricing and deliver phones to market when promised, all while trying to boost a static market share. Motorola still trails the market on many features, including offering a cell phone with an integrated camera or a personal digital assistant (PDA), said Deutsche Bank analyst Brian Modoff, who has a "sell" rating on the stock. "I don't know that they can claim the cutting edge, but they can certainly say they're a much better phone company," said Modoff, who does not own Motorola stock. Deutsche Bank has done banking work for the company in the past. Motorola's flagship phone this year will be the V600, a clamshell-type phone with a large color screen, integrated camera, photo messaging feature and the ability to connect to headsets cordlessly through a technology known as Bluetooth. Last year, Motorola made a splash with its sleek V70 phone, which had a unique rotating cover. Many of the new phones are enhancements of products launched last year. The V600, which can fit in the palm of a hand, will cost about $300 and will be available in the third quarter in time for the holiday season. Motorola has said in the past that it aims to have 25 percent of the global cell-phone market over the long term, compared with its 14.4 percent share at the end of the third quarter, according to research firm Gartner Dataquest. Motorola was above 15.5 percent in the previous two quarters. The company has done well on its handset designs in the past year, one analyst said. "From a design perspective, Motorola has done amazingly well. They've been very un-Motorola. It's been good," said the analyst, who asked not to be identified. "It's something that had been a weakness for them since they lost their market dominant position." While Motorola may soon seize the U.S. sales crown from Finland's Nokia, it will be hard pressed to maintain its dominance in China and Europe, which have been very hard markets for it, the analyst said. Lalla said Motorola is aiming to become the second largest cell-phone player in Europe from No. 3, take the top spot in the United States, and maintain its lead in China and Canada. However, while Motorola has gained in individual markets, its global market share has recently stagnated as rivals also introduce phones packed with color and features. The company also will offer the C350, a next-generation version of its current low-end phone, at a price slightly above $100. The model, due out this quarter, is targeted at teens and youths, and will initially be sold in Asia. In addition, Motorola will roll out two mid-tier phones in the $200 to $300 range. The T725 is designed to be compatible with EDGE (Enhanced Data for GSM Evolution), an advanced version of GSM that offers high-speed Internet access. The other, the 388c, is a phone combined with a PDA. Both are next-generation versions of current models. The T725 is expected to roll out in the third quarter, most likely in the Americas initially. The 388c phone is expected in the current quarter, probably first in Asia. Motorola said its top of the line phone in 2003 will be a phone that combines a large display, integrated video and still camera, MP3 player, PDA and video conferencing. The A835 will cost more than $450 or $500 and will go on sale in the third quarter, likely in Europe first. It also plans to offer two new phones in Asia in the third quarter, priced $200 to $250 and aimed at younger consumers.