January 9, 2007 in Business

Motorola stays calm

Associated Press The Spokesman-Review
 
Associated Press photo

Ed Zander, chairman and CEO, Motorola Inc. shows the Motofone, a new phone with a high-contrast reflective display.
(Full-size photo)

New PC chip introduced

» For more than a year, Intel Corp. and other chip makers have been selling the idea that two heads are better than one. Now, the world’s largest semiconductor company is betting four heads — actually, four computing engines — will be better still.

» On Monday, Intel introduced the newest additions to its line of microprocessors, the silicon “brains” of computers. The Intel Core 2 Quad has four computing cores in a single chip package. » The company said the upgrade from two-core line will give PCs an extra boost in handling media-intensive applications such as high-quality video games or intensive graphic-design and video-editing programs.

» Intel announced quad-core chips for servers and gaming PCs last year. The latest processors, which are immediately available, are targeted at mainstream computer users.

LAS VEGAS — Motorola Inc. chief executive Ed Zander rode onto the stage Monday at the International Consumer Electronics Show astride a yellow bicycle, joking that he pedaled all the way from Chicago because his company was on “expense controls.”

It wasn’t the first poke Zander would make about the wireless equipment maker’s ailing fortunes, even as he opened this year’s major technology show by introducing several new products and services that Motorola hopes will boost sales.

The company recently warned of disappointing sales and earnings from the key holiday selling season, causing investors to dump their Motorola stock and industry experts to use phrases like “tired product” to describe the blockbuster Razr line of cell phones.

Zander referenced analyst concerns by announcing the company’s latest phone, then lugging a 20-year old mobile handset the size of a brick to his ear.

“The analysts who are here today will like this because there are a lot of gross margin dollars in this puppy,” Zander said, commenting that the phones once sold for $4,000 each. “If I could get some of you to buy some, it would sure help.”

Zander then introduced a real new phone model, the Motorizer, that would use Microsoft Corp.’s Windows Media software to transfer music purchased from more than 200 Web-based stores worldwide to the handset. The phone will become available the first half of this year, the company said.

Motorola also announced a partnership with Warner Music Group to sell Motorizer phones pre-loaded with music, as well as sell ringtones, wallpaper and videos.

Zander also demonstrated a wireless stereo headset that will play music streamed from the phone using Bluetooth. Controls on the headset, which can work up to 30 feet away from the phone, can also pause songs to take or make calls.

Motorola also said it was one of several companies working with Yahoo Inc. to incorporate a new mobile application, Yahoo Go, into its handsets. The software delivers search, photos, local information, e-mail and other Yahoo services.

On the cable TV product front, Motorola said it would expand its “follow me TV” feature to Comcast Corp. systems this year. The service allows customers to pause a program on a TV in one room, then restart it on a monitor in another part of the house.

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