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 MOT.N said on Thursday that he is cautious about sales of emerging high-speed wireless p"> |
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Motorola cautious about 3G prospects for 2005 NEW YORK (Reuters) - The mobile phone chief at Motorola Inc. (MOT.N: Quote, Profile, Research) said on Thursday that he is cautious about sales of emerging high-speed wireless phones this year, even if their prices become more affordable. Companies such as wireless chip supplier Qualcomm Inc. (QCOM.O: Quote, Profile, Research) have said that once mobile phone prices fall below $200, slow sales in regions such as Europe should improve later this year for so-called third-generation (3G) phones with advanced features like video. "People continue to say if you could only hit a certain price point things could take off and fly," Ron Garriques, president of Motorola's mobile devices unit, told Reuters. "Low prices alone are not enough to make the market take off in the second half of this year." Wireless companies around the world are spending billions on developing additional phone services such as music and Web surfing; but until phones with those features are lightweight and easy to use, they will not become popular, Garriques said. "I believe that size, weight, battery life, compelling applications and design are just as important as price points," said Garriques, who does not believe there are enough strong 3G offerings right now to create mass consumer appeal. The majority of mobile phones sold are still based on older technologies. Motorola, the No. 2 worldwide maker of handsets, plans to sell a 3G version of its popular high-end RAZR phone in the fourth quarter. Garriques said Motorola's 3G phones were designed with many components used in older handsets, cushioning Motorola's financials if demand for 3G is slow to pick up. Shares in Motorola were up 20 cents at $17.69 in mid-afternoon trade on the New York Stock Exchange. News Sourcehttp://www.microsite.reuters.com
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