Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Qualcomm Incorporated (QCOM) -- Ignore unavailable to you. Want to Upgrade?

To: Feathered Propeller who wrote (32713)	6/20/1999 7:53:00 AM
From: Morgan Drake	Read Replies (1) \| Respond to of 152472

Yep.

To: Feathered Propeller who wrote (32713)	6/21/1999 10:44:00 PM
From: Feathered Propeller	Read Replies (1) \| Respond to of 152472

Iridium Cuts Prices of Sat. Service headlines.prodigy.com WASHINGTON (AP) -- Iridium, the troubled maker of go-anywhere satellite telephones, said Monday it would cut prices up to 65 percent as part of an ongoing attempt to jump start its business. The moves are part of a new marketing strategy and follow staff cuts intended to reduce costs. Iridium, which offers wireless phone service from virtually anywhere in the world, has signed up only 15,000 subscribers, far short of its goal of a half-million subscribers by the end of the year. The price cuts, effective July 1, include a new international flat rate of about $3 a minute, down from $7 a minute when the service was introduced in November. Calls within Europe or the United States and Canada will cost less than $2.50 a minute. Iridium also will shift its marketing focus from business travelers to the boating and agriculture industries and government agencies. "To reach these markets we've got to have a simpler pricing structure that does not leave our customers vulnerable to high per-minute charges," said John Richardson, chief executive officer. Motorola Inc. and Kyocera Corp., which produce Iridium's portable electronics, will begin selling satellite phones for less than $1,000, down from more than $3,000 in some markets. Motorola owns 18 percent of Iridium. Earlier this month, Iridium fired 15 percent of its 550 employees, including most of its marketing executives. The initial marketing strategy targeted high-end business users but was flawed, Richardson said. "A lot of very bright scientists got together and produced something that had immense commercial application ... but didn't really give much thought as to how they were going to sell it," he said. After Monday's price cuts, Iridium's beaten-down stock rose $1.28 1/8, or 17 percent, to $9.03 1/8 on the Nasdaq Stock Market, but its shares are still down 85 percent from its 52-week high of $61.62 1/2. Analysts remained skeptical it will succeed. Marc Crossman, a J.P. Morgan analyst, has downgraded his "neutral" rating on the company since it announced the restructuring. He now expects the company to underperform the market. "I wouldn't think of owning it until after the restructuring," he said. Iridium recently completed a 66-satellite "constellation" when it launched two backup satellites. The company said it is continuing to work with its lenders to restructure its financing. Copyright 1999 The Associated Press