Motorola to Supply IBM, Toshiba With Wireless Devices
--From AOL. Looks like the PC/wireless convergence is accelerating.-- Cooters Monte Carlo, Monaco, June 12 (Bloomberg) -- Motorola Inc., the No. 2 maker of cellular phones, said it will supply International Business Machines Corp. and Toshiba Corp. with devices that let computers communicate by radio signal.
Using a standard called Bluetooth, personal and handheld computers, cell phones, printers and even cars can recognize each other and exchange data when they come within 30 feet. IBM, the No. 1 computer maker, and Toshiba, the world's No. 1 notebook- computer maker, will offer Motorola Bluetooth devices across a range of their products, the companies said in a release.
The Bluetooth initiative, in which about 1,900 companies participate, was begun in early 1998 by Ericsson AB, Nokia Oyj, IBM, Toshiba and Intel Corp. to develop a standard that would connect devices via radio waves and eliminate cables. It was named after a Viking king, Harald Bluetooth, who united Denmark and Norway around A.D. 960. The companies are meeting in Monte Carlo, Monaco, this week at the Bluetooth Congress.
``Bluetooth will enhance the usability of mobile products by simplifying the way devices connect and communicate,'' said Fran O'Sullivan, IBM vice president of mobile computing development.
By 2005, market researchers expect there will be about 700 million electronic devices with Bluetooth technology, said Tony Kobrinetz, Motorola vice president and general manager for the personal networks group. That could translate into a $3.5 billion market for Bluetooth semiconductors, he said.
``That's a very conservative estimate,'' Kobrinetz said. Motorola is one of the world's largest makers of semiconductors.
No More Cords
Using short-range radio waves, the devices automatically recognize each other and exchange data files, e-mail, music and even video, Kobrinetz said. That could eliminate the tangle of cables that plague computer setups. A Bluetooth laptop could communicate with a cell phone in a briefcase for wireless access to the Internet, he said.
Motorola is now shipping to IBM and Toshiba so-called PCMCIA cards and an accessory that plugs into a PC's USB port that will make laptop computers Bluetooth-enabled.
Kobrinetz declined to say when IBM and Toshiba will sell the accessories. He said that Motorola plans to sell Bluetooth adapters later this year for its current cell phone models and to make new phones with the technology inside.
Palm is Customer
Motorola makes chips for Palm Inc.'s handheld personal digital assistant, the Palm Pilot, and for a similar device made by Handspring Inc. Buddy Broecker, Motorola operations manager for its Wireless Communications Division, declined to say if the two companies will incorporate Motorola Bluetooth technology.
However, Broecker said that he is working with all of Motorola's present customers to ``integrate this into their products.''
Motorola has a kit ready for carmakers to use to incorporate Bluetooth technology. Schaumburg, Illinois-based Motorola is the largest supplier of semiconductors to the auto industry.
Kobrinetz said that with Bluetooth wireless technology, a person could be talking on a Bluetooth cell phone, enter the car, and automatically pick up the conversation on a speakerphone inside. Future versions will allow interaction with vehicle navigation devices and multimedia systems.
``We're only scratching the surface of what Bluetooth can be in the car,'' said Marios Zenios, vice president and general manager for Motorola's Telematics Communications Group.
Motorola rose 1/8 to 35 1/8 in early trading. Its shares are down about 29 percent this year.
Jun/12/2000 9:57 ET |