updated 09:55 pm EDT, Wed June 27, 2007
Jobs to hold company intro
Motorola says that the pending launch and future success of Apple's much-anticipated iPhone may hurt its business. Ahead of the Friday retail launch and an expected private introduction by Apple CEO Steve Jobs himself at Apple's Cupertino-based company, The company has admitted that it is worried about the effect of Apple’s iPhone, but says that the slow mobile data connectivity and "multitouch" interface may negatively impact consumer experiences. The company's hugely successful RAZR mobile phone has helped it become the world’s second-largest mobile phone maker, but it hit a huge hurdle early this year when it posted a lost of $181 million for the first three months of 2007 -- after trying to gain market share ground from industry-leading Nokia.
Motorola is hoping that a new a generation of phones, designed to replace the aging RAZR line, may help its turnaround plan; however, its chief technology officer (CTO) told the Financial Times that she was “worried” about the effect on its own mobile handset business, but claimed that the iPhone had weaknesses and predicted it would appeal only to a “small part of the market”.
“I do worry about [the iPhone] because [Apple] is a great competitor; a very respectable, credible, tough competitor to have in the industry,” said told the publication.
The iPhone, however, is expected to have “severe limitations” because it will not run on AT&T's high-speed, third-generation ("3G") mobile network, but rather un on its slower "2.5G EDGE network. Several reviewers have already noted that EDGE runs at two different speeds in the US and that the slower speed is "excruciating slow."
Motorola's CTO also said that the iPhone’s finger touch screen could “limit its appeal” to people who use smart phones such as Research In Motion’s Blackberry and Motorola’s Q, which both have tactile keyboards.
Jobs to address Cupertino employees
According to an email sent to employees, the company's CEO will address company employees at 11:00 a.m. at its "Town Hall". The meeting, which will be broadcast to other campus locations, will undoubtedly showcase the iPhone as a "gamechanger" in the industry.
"We're launching the most revolutionary and exciting product in Apple's history this Friday," the CEO wrote in an email obtained by the public. "And given Apple's legacy of breakthrough products, that's saying a lot. ... I'd like to get together and share my thoughts about this amazing moment for our company. So please join me for a company-wide communications meeting tomorrow, Thursday, at 11:00AM in Town Hall."