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-Motorola unveils new wireless phones for 2003
Wednesday January 8, 2:20 pm ET
By Ben Klayman
-(Recasts first paragraph, adds Motorola president comment, background)
CHICAGO, Jan 8 (Reuters) - Motorola Inc. (NYSE:MOT - News), the world's No. 2 mobile telephone maker, on Wednesday introduced seven sleek new models to tempt customers, but analysts said it may not be enough to head off competition from rivals like Nokia (NOK1V.HE)(NYSE:NOK - News).
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-Motorola's Personal Communications Sector, which makes the cell phones, said at its product showcase event in Shanghai that five of the phones will be offered globally while two will be sold only in Asia, with a big emphasis on color and design.
-"The past two and a half years have been very painful. We're starting to see some of the positive results," Motorola President Mike Zafirovski told Reuters in Shanghai.
-Color and style may not be enough, however. Analysts said Motorola needs to cut costs further, become less aggressive on pricing and deliver phones to market when promised. All this must be accomplished while boosting market share in an industry where rivals also boast phones with color and style.
-"I don't know that they can claim the cutting edge, but they can certainly say they're a much better phone company," said Deutsche Bank analyst Brian Modoff, who has a "sell" rating on Motorola and who does not own Motorola stock.
-Motorola has said it wants 25 percent of the global cell-phone market in the long term, compared with its 14.4 percent share at the end of the third quarter, according to research firm Gartner Dataquest.
-All of the new phones are based on Global System for Mobile Communications (GSM), the world's dominant wireless standard. Motorola will introduce an unidentified number of additional phones in the rest of 2003, including some based on Code Division Multiple Access, the second most popular network standard.
-The 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. 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.
-The company has done well on its handset designs in the past year, an 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.
-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.
-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 and targeted at younger consumers, 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.
-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, the A835, will combine a large display, integrated video and still camera, MP3 player, PDA and video conferencing. It will cost more than $450 and 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. (additional reporting by Edwin Chan in Shanghai and Yukari Iwatani in Chicago).
-Motorola unveils new wireless phones for 2003
Wednesday January 8, 2:20 pm ET
By Ben Klayman
-(Recasts first paragraph, adds Motorola president comment, background)
CHICAGO, Jan 8 (Reuters) - Motorola Inc. (NYSE:MOT - News), the world's No. 2 mobile telephone maker, on Wednesday introduced seven sleek new models to tempt customers, but analysts said it may not be enough to head off competition from rivals like Nokia (NOK1V.HE)(NYSE:NOK - News).
ADVERTISEMENT.
-Motorola's Personal Communications Sector, which makes the cell phones, said at its product showcase event in Shanghai that five of the phones will be offered globally while two will be sold only in Asia, with a big emphasis on color and design.
-"The past two and a half years have been very painful. We're starting to see some of the positive results," Motorola President Mike Zafirovski told Reuters in Shanghai.
-Color and style may not be enough, however. Analysts said Motorola needs to cut costs further, become less aggressive on pricing and deliver phones to market when promised. All this must be accomplished while boosting market share in an industry where rivals also boast phones with color and style.
-"I don't know that they can claim the cutting edge, but they can certainly say they're a much better phone company," said Deutsche Bank analyst Brian Modoff, who has a "sell" rating on Motorola and who does not own Motorola stock.
-Motorola has said it wants 25 percent of the global cell-phone market in the long term, compared with its 14.4 percent share at the end of the third quarter, according to research firm Gartner Dataquest.
-All of the new phones are based on Global System for Mobile Communications (GSM), the world's dominant wireless standard. Motorola will introduce an unidentified number of additional phones in the rest of 2003, including some based on Code Division Multiple Access, the second most popular network standard.
-The 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. 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.
-The company has done well on its handset designs in the past year, an 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.
-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.
-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 and targeted at younger consumers, 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.
-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, the A835, will combine a large display, integrated video and still camera, MP3 player, PDA and video conferencing. It will cost more than $450 and 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. (additional reporting by Edwin Chan in Shanghai and Yukari Iwatani in Chicago).
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