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To: slacker711 who wrote (3966)6/5/2006 2:06:44 PM
From: Eric L  Respond to of 9255
 
Moto's Ron Garriques at JP Morgan [and SCPL]

<< Motorola sees the RAZR platform as having sales of 300-500 million over its lifetime. From Ron Garriques presentation at JP Morgan last week.... >>

Yes. He stated that they will ship their 50 millionth RAZR (family member) this quarter, and I believe he is including the SLVR L6 & L7 bars in that number as part of the platform. Hopefully they don't try to push the RAZR platform as far and as long as they did the StarTac family, at the expense of other design platforms allow though at least there is a variety of form factors on the RAZR platform.

He kind of sighed about finally getting the 'Q' out (on Verizon). It'll be interesting to see if they make his Q4 target of a Q4 launch for the 3GSM UMTS model.

His observation that carriers are not subsidizing 3GSM UMTS models more than 2.5G models now, and margins are about the same on 2.5G v. 3G models was interesting.

His China slide from Sinocast was also interesting. It showed Nokia improving China share from 20.5% in May 2005 to 28.4% in April 2006 with Moto increasing its share from 12.6% to 20.1% with Samsung relatively flat at 10.6% today.

I didn't catch any SCPL references in the main presentation and he was not overly-comittal about its specifics or when initial members of the family will appear.

Eleven months ago Crain's Chicago Business wrote an article about the Scalpel and published very unrevealing concept photos of the Scalpel that are still being circulated ...



In the smaller-is-deadlier battle for control of the worldwide cell phone market, Motorola Inc. CEO Edward Zander is trading in his Razr for a Scalpel. The new quarter-inch-wide phone is his weapon of choice in Motorola's bid to overtake archrival Nokia Oyj in its strongholds overseas. About half as thick as the pricey Razr phone U.S. customers embraced last year, Scalpel also incorporates the "candy bar" shape of almost all of Nokia's models. Expected to be in stores across Europe, Africa, the Middle East and Asia by next year, the Scalpel will sell for around $40, according to an analyst briefed on the product. ... <snip rest>.

tinyurl.com

Shortly afterwards Engadget commented ...

We're a little vexed on the finer points of Moto's supposed intentions, but Crain's Chicago Business is reporting Ed ZNDR has plans to release a new, even thinner candybar called the "Scalpel" (SCLPL?), intended to sell for $40 in European, African, Middle Eastern, and Asian markets, and undermine Nokia's global reach. We'd say that's a pretty aggressive plan if that's the case, but we can't help but wonder why they'd undercut their smallest, thinnest phone—the SLVR—with something even smaller and less expensive; let alone how they'd even be able to manufacture an ultraslim device so inexpensively. All this from a supposedly informed Citigroup VP's mouth—not the horse's—so don't get your hopes up too much for that ¼-inch thick phone just yet.

tinyurl.com

One week ago Moto's Ron Garriques kicked off the latest round of conjecture when Reuters reported his SCPL reference ...

Motorola plans a new range of slim cell phones next year, the head of its cell-phone division said on Wednesday. Ron Garriques, who heads Motorola's biggest division, said the range would be called the SCPL, pronounced "scalpel." He did not give any details beyond describing the phones as thinner and with five features that would stand out from rival phones.

tinyurl.com

The next day CNET.UK commented ...

The Scpl range, which is supposed to be pronounced "scalpel", will apparently be slim handsets that are based on the Razr. We've seen a few leaked pictures on the Mobile-Review forum of a phone said to be called the Motorola Canary, which we thought might be the Razr's successor, but we weren't overly impressed. ... This rumour (and it is just a rumour for now) was started by Ron Garriques, the executive vice president of Motorola, and it makes the hairs on the backs of our necks resemble guards at Buckingham Palace. We're not going to break out the 1982 Dom Perignon just yet though -- we're well aware that what's said at a press conference sometimes stays at the press conference. But we will keep you updated if anything materialises.

tinyurl.com

Welcome back. Hope you enjoyed your trip.

Best,

- Eric -



To: slacker711 who wrote (3966)6/6/2006 3:55:02 PM
From: Eric L  Respond to of 9255
 
Coming Soon, Near You ...

.. new Nokia and Moto Retail Outlets.

• Motorola at 666 N. Michigan Avenue (June 8 Opening)

• Nokia at 545 N. Michigan Avenue (June 24 Opening)

Hopefully you'll wander down to the Mag Mile, give em a look after both open, and offer up a comparative review of them for us.

Maybe you'll run into Ed Zander who lives near Moto's "Destination Q" which means he lives near Nokia's 1st US flagship store as well., so Nokia's opening probably didn't sit too well with him. <ggg>

>> Motorola, Nokia set stores on Mag Mile

M. Hughlett
Chicago Tribune
June 2, 2006

tinyurl.com

The world's two largest mobile phone makers will soon unveil their first U.S. retail outlets on Michigan Avenue, Chicago's premier shopping thoroughfare.

With the stores, Motorola and Nokia are aiming to build brand awareness, focusing on image and experience more than they are on selling phones directly to consumers.

In fact, Motorola's store at 666 N. Michigan Ave. is temporary: It is slated to open in June and operate through the summer. The outlet is dubbed "Destination Q" after the new smart phone Motorola launched last week.

Destination Q will sell the Q--a rival to the popular BlackBerry device--along with other Motorola products sold through Verizon Wireless. The store will occupy the first and second floors of the former Terra Museum.

Finland-based Nokia, the world's biggest cell phone-maker, is scheduled to open a permanent store not far away at 545 N. Michigan Ave. on June 24.

Both stores represent the phone makers' efforts to make a direct connection with consumers. Mobile phones in this country are primarily sold through wireless networks like Verizon.

And those networks typically carry phones made by several companies.

With their own stores, Motorola and Nokia can bask in their own spotlight.

"It gives their products top shelf," said Roger Entner, a wireless industry analyst at Ovum.

Nokia plans to open another permanent store in New York City later this year.

Motorola does not currently have plans for a permanent U.S. store, said Timothy Whiting, a Motorola marketing director.

Motorola does anticipate more temporary stores, but the company declined to comment on where they would be.

So why is Chicago the site of the phone giants' first stores?

Chicago "has a very famous shopping district," said Keith Nowak, a Nokia spokesman. "It draws consumers from all over the world."

Did Nokia's decision have anything to do with the fact its main rival, Motorola, is based in suburban Schaumburg? "Total coincidence," Nowak said.

Whiting said the hometown angle--or as he put it, "the desire to do something new to the world in our hometown"--loomed large for Motorola. <<

>> Motorola's Mag Mile Store to Open June 8

Julie Johnsson
Crain’s Chicago Business
June 01, 2006

chicagobusiness.com

Motorola Inc. next week will unveil Destination Q, a retail store based in the former Terra Museum that’s designed to give Michigan Avenue shoppers an eye-popping look at its much touted smart phone, while giving Moto a leg up on arch-rival Nokia Corp.

The Motorola store, named for its Q smart phone, will open June 8.

Nokia plans to open a store one block south on June 24, the Finnish phone-maker’s first retail foray in the United States.

Moto’s Mag Mile venture, first reported in Crain’s Chicago Business (story below), comes as the world two-largest wireless phone manufacturers seek to better connect with consumers.

Destination Q will be the first in a series of retail outlets designed to give consumers a closer look at Motorola products, the company said. Visitors can soak up video, Internet updates and music at the Moto Q bar, or relax in the Moto Q lounge within the store. Motorola experts will provide hands-on demonstrations of the Q’s features, like music, video and emails.

Motorola will sell models of the Q, which is being sold exclusively in the United States by Verizon Wireless. It will also offer other products tailored to Verizon’s network, including the Razr V3c.

The store will only be open for a few months in the vacant museum, which is slated to be replaced by a condominium tower next year. It's designed to generate buzz around a product that Motorola hopes will provide a follow-up hit to the Razr.

"That's part of the magic, trying to create something that does not get old," says Tim Whiting, senior director of marketing with Motorola's mobile devices division.

Motorola is planning other stores, in other locales, to publicize other products.

Nokia, meanwhile, is holding a photo contest to tout its flagship store at 543 N. Michigan Ave. Passersby are encourage to post photos of the city and its neighborhoods to www.nokiausa.com/yourchicago. Three winners will receive N90 video phones. Nokia may also post their pictures on the giant cloth-covering obscuring its store entrance. <<

>> Moto's Hello to Mag Mile

Julie Johnsson and Sandra Jones
Crain’s Chicago Business
May 22, 2006

chicagobusiness.com

First-ever store opening in former Terra building; face-off with rival Nokia

Motorola, the world's second-largest maker of cell phones, behind Nokia, is close to signing a temporary lease for the former Terra Museum of American Art at 664 N. Michigan Ave., according to people familiar with the plan.



Marshall Field V, chairman of the Terra Foundation's board of trustees, confirmed that Motorola is looking to move into the space as soon as possible.

The vacant museum, which is slated to be replaced by a condominium tower next year, gives Schaumburg-based Motorola a chance to beat Nokia to the Magnificent Mile. Nokia's first U.S. store is set to open sometime later in June at 545 N. Michigan Ave.

Motorola has also looked at the former Sony Gallery space at 663 N. Michigan Ave., which has been vacant for about two years, according to a person familiar with the search.

Donald Ratner, chief financial officer of the Terra Foundation, which is leasing the museum property, declines to confirm a Motorola deal. But Mr. Ratner says he expects a tenant by June, and whoever leases the space will have at most a six-month agreement that will go to a month-to-month lease until Prism Development Co. begins construction.

Finland's Nokia opened its first store in Moscow's Pushkin Square in December and plans to open another five stores this year, including outposts in New York and Helsinki, Finland, according to a spokesman. Nokia plans to operate 18 stores worldwide in three years.

The Michigan Avenue face-off comes as cell phone makers look to make a more direct connection with consumers. Until the past few years, Motorola focused more on engineering than design, lagging Nokia and South Korea's Samsung Electronics Co. Ltd. in style and marketing savvy. But under Chairman and CEO Edward Zander — who lives near the proposed store — Motorola is emerging as a consumer electronics powerhouse, driven by its ultra-thin Razr phone and hip new designs like the Slvr, Pebl and Q.

"Opening their own branded stores allows them to take their best features directly to consumers," says Michael DeSanto, vice-president of Walker Information Inc., an Indianapolis-based market research firm.

Motorola opened an edgy design center, dubbed MotoCity, at 233 N. Michigan Ave. in late 2003 to put its designers closer to shoppers.

Details of Motorola's first showcase store weren't disclosed, and a spokeswoman declines to comment. But if the store is in line with Nokia's concept, it will resemble an electronic playland, featuring plenty of hands-on displays and interactive kiosks that will encourage shoppers to linger.

The risk for both companies: Stores could alienate cellular service carriers, cell phone makers' largest customers. But the carriers are losing influence as industry growth shifts overseas, where most consumers buy phones from retail stores. Consumers' loyalty to handset makers outweighs their loyalty to wireless carriers, according to a 2005 survey of consumers conducted by Walker Information. <<

- Eric -



To: slacker711 who wrote (3966)6/8/2006 10:12:08 AM
From: slacker711  Read Replies (1) | Respond to of 9255
 
Telstra misses out on popular handsets in Brightstar deal

theaustralian.news.com.au

Michael Sainsbury
June 08, 2006
WALK into any Telstra shop these days and you will be begged to sign up to a new two-year mobile phone contract on its 3G (third generation) network.
You will be shown the latest handsets from the world's No2 and 3 handset makers - Motorola and Samsung.

You will be handed slim-line, top-of-the-range models by those two vendors.

You will be offered a bargain basement price with all sorts of features.

What you won't be offered is a handset from the world's most popular mobile brand: Nokia.

In fact, Telstra has just one of Nokia's six available 3G handsets on a subsidy contract plan. And it has only one of Nokia's 2G handsets on a plan, out of more than a dozen on the market.

But Telstra's customers want Nokias, badly - about one in every two mobile customers in Australia does.

Nokia's market share in Australia is better than its global mark of about 34 per cent. It's somewhere in the high 40s - down from spectacular levels near 70 per cent a few years back but still a mighty performance in an ultra-competitive and crowded market.


Telstra and Nokia - arguably the two biggest mobile brands in the country - are engaged in a bitter arm wrestle. It's over Telstra's decision last year to give Brightstar - a Miami-based company with no previous business in Australia - a contract to source and warehouse its mobiles.

Nokia, LG and most of the rest of the handset makers hated the idea. After all, Brightstar would be effectively taking some of their margin.

Telstra has Brightstar on a retainer with a success fee if they can squeeze savings out of the handset vendors, without the telco getting its paws dirty. Little wonder Nokia and their rivals hate the arrangement so much.

And the industry is still scratching its head on how inserting one more middle man into the supply chain can actually save the telco money. As the Yanks say, you do the math. Nokia's 6280, recommended retail price $699, is the hottest phone in the mobile market right now. It's overtaken the more expensive Motorola VX3 - the 3G Razr phone.

Telstra is not carrying it, but it is flying off the shelves at rival stores.

At least half the new handsets being sold in the market at the moment are 3G due to a massive push by Telstra, Vodafone and Optus as they attempt to bridge the headstart by "3", which has a million users - at least two-thirds of the 3G market.

For those that have been hiding under a rock these past seven years or so, 3G is the name the telco industry has given to the next generation of mobile networks. They offer users a myriad of data services including video calling, email and messaging. They also give the networks substantial cost savings on voice services - still the main revenue driver in the market for the foreseeable future.

As Telstra's affable handset tsar Mike Robey - a rare human being amongst a sea of marketing automatons - explains: "All the manufacturers are heading down the path where they are putting all their research and development into 3G. Some have shut down their 2G roadmap. We are actually providing better value in 3G."

It's an inflection point in the industry that Telstra chief Sol Trujillo is, quite logically, trying to turn to his advantage, by recasting Telstra's relationship with handset providers and building a new national network in the hope of gaining an unbreachable competitive edge.

The battle for brand supremacy between the networks and the handset makers is as old as the mobile industry.

It's a battle Trujillo has fought before.

His head mobile amigo, the well-regarded John Gonner, likes to tell people that while Trujillo was at Orange he pulled the same stunt with Nokia and reduced its market share. So he has form, but Australia is not Europe like it's not America.

Trujillo wants Telstra to be the country's premier mobile brand with its BigPond content - not Nokia, which has its own ambitions in online music and the like, that bump right up against the big T.

For its part, Nokia has always used an open business model. It uses a number of distributors to sell to as many outlets and dealers as it can. Being forced to deal with Brightstar, being pushed around by Trujillo and his team, sticks in Nokia's craw and goes against 15 years of happy partnership with the telco.

Telstra also appears to be flying in the face of industry trends with the Brightstar appointment.

Other carriers say they are working more closely than ever with handset vendors on customisation and making sure the growing range of mobile content works.

This was evident in last year's Optus 3G launch, with the move to have some Microsoft applications "native" on some Nokia handsets. This week Yahoo7 announced a Nokia partnership as well.

Clearly some accommodation will be reached. But at the moment, Telstra's customers are missing out on these innovations and cheap 3G Nokias. Or going elsewhere.

So much for Trujillo's much-professed ardour for his customers.

sainsburym@theaustralian.com.au