Motorola: Digital usage booming
A Motorola executive says that the Internet is driving up digital usage to the point where it is now on a par with analog.
"The Internet is whetting the appetite for wireless products," James Caile, vice president of marketing for Motorola's cellular subscriber sector, said at today's NationsBanc Montgomery Securities 15th annual Technology Week conference.
He added that, of 200 million cellular subscribers, half are using digital technology.
Analog phones accounted for 90 percent of Motorola's business in 1994, Caile said, estimating that digital will make up 90 percent of its business this year.
Caile said that the phones of the year 2000 largely will be equipped with such features as email and fax capabilities, as well as Internet access. He noted also that today's abundant voice spectrum, combined with the presence of many competing carriers in the marketplace, is helping to foster the evolution of telephone technology.
The future bodes well for Motorola, which is trying to move forward following its year-long restructuring efforts. For the past two quarters, the company has posted consecutive year-to-year growth on revenues and profits.
Earlier this month, Motorola reported fourth-quarter profits of $321 million on revenues of $8.3 billion.
Despite those results, the company has said that Asia's economic turmoil is taking a toll on its sales, orders, pricing, and profits, and will continue to do so through the first half of the year.