Motorola Teams with General Magic, Industry Leaders to Create Personal Communication Devices, Services
NEW YORK — February 8, 1993 — Motorola Inc., the recognized leader in mobile communications, Monday confirmed its membership in an alliance of industry leaders to create a new class of personal communication products and services.
The alliance, founded by General Magic, Motorola, Apple and Sony, and subsequently joined by AT&T, Matsushita and Philips, will utilize Magic Cap and Telescript technologies developed by General Magic as the core of its offerings.
Motorola will offer a wireless personal intelligent communicator based on General Magic's Magic Cap, a communicating application platform that incorporates Telescript, a programming language and software for flexible communications.
Motorola will manufacture and market its personal intelligent communicator initially for the business consumer and ultimately for the mass market. The device, which will feature built-in, two-way wireless communications functions, will be the first of a number of personal communication products to be introduced by Motorola's new Paging and Wireless Data Group (PWDG).
Motorola joined the alliance in February 1991 because General Magic's objectives matched Motorola's own vision of personal communications. Motorola, along with the other founding alliance members, owns an equity stake in General Magic and has a seat on its board of directors.
''We did not hesitate to help form the alliance that will create the software standards needed for a new class of personal communication devices,'' said George Fisher, Motorola chairman and chief executive officer.
''Motorola is at the forefront of wireless technology, including cellular, paging and mobile data. In addition, we have a proven history of bringing miniaturized, yet powerful technologies to market. It's only natural for us to play a leading role in the next wave of portable and personal communications.''
Motorola's personal communicator, to be built at the PWDG's Schaumburg, Ill., site, is a new battery-powered, hand-held device with integrated wireless communications capability.
''Motorola is leveraging the synergy among various product groups — personal messaging products, semiconductors, paging products and messaging networks — to ensure the company's success in the emerging category of personal intelligent communicators,'' said Christopher Galvin, senior executive vice president and assistant chief operating officer.
Motorola will be the first in the industry to bring integrated wireless capabilities to personal intelligent communicator devices.
''We believe there will be strong demand for fun and easy-to-use devices that will help people stay in touch with the office or with those at home,'' said Pat Richardson, vice president and director, Motorola Personal Messaging Products. ''Motorola plans to fill that need with our personal intelligent communicator.''
In addition, Motorola is exploring partnerships with third-party software developers and peripheral manufacturers for a variety of end-user applications. Also, Motorola plans to make versions of this new communicator that will operate on several wireless data networks, including ARDIS and RAM Mobile Data. Discussions with these network operators, as well as with emerging carriers, are under way.
Motorola, working closely with the alliance members, has designed and manufactured cost-effective semiconductors for use specifically in personal intelligent communicators. One of the key components, code-named Dragon 1, is the core chip that integrates the central microprocessing and general peripheral functions into one high performance, low voltage chip. A second highly integrated custom chip incorporates the bulk of the digital functions.
Motorola Inc., headquartered in Schaumburg, Ill., is one of the world's leading manufacturers of electronic equipment, systems and components for worldwide markets. Motorola products include two-way radios, mobile and portable data terminals and communications systems, cellular telephones and systems, pagers, integrated circuits and discrete semiconductors, defense and aerospace electronics, automotive and industrial electronic equipment, and information processing and handling equipment. Motorola was a winner of the first Malcolm Baldrige National Quality Award, in recognition of its superior company-wide management of quality processes.
motorola/General Magic Questions & Answers General
1. What is Motorola's vision for personal intelligent communicators?
We believe that personal intelligent communicators will provide business users and ultimately the average consumer with the ability to communicate with anyone, anywhere in the world at any time. The devices will be fun and easy to use and will allow new freedom.
2. Why is wireless so important to personal communications?
Motorola believes personal communication means connectivity — anytime, anywhere. To achieve that definition, a person's communications capability must be untethered, or wireless. Personal communication does not mean finding a phone jack to send an E-mail. It means using a device, without wires, to send and receive information independent of location.
3. Why are you categorizing this product as a personal intelligent communicator? Why not call it a PDA, which has already been talked about by the press and analysts?
We don't feel the term PDA adequately describes the capabilities of our personal intelligent communicator. Besides having the traditional organizing functions such as To Do lists and calendars, our device will be a full-featured communicator with integrated, two-way wireless capabilities such as messaging and alerting.
4. Why do you consider a personal communication device a consumer product?
We predict that the first users will be business consumers who will see their productivity increase with a pocket-size device that handles both communications and some computing functions. But we also see an analogous situation with the cellular telephone, which is beginning to move into the traditional consumer electronics market. A personal intelligent communicator serves the "whole person's" business and personal needs. That is, the professional uses the device throughout the business day and for personal applications as well.
5. When can we expect to see a device from Motorola?
We will announce our product later this year.
6. What kind of resources is Motorola putting behind this product?
While company policy doesn't permit us to quote exact figures, we can say that Motorola is putting millions of dollars and substantial personnel behind this product. Motorola's senior management, including the Office of the Chairman, recognized early on the great potential of this new class of devices, and even did some major restructuring, recently forming the Paging and Wireless Data Group (PWDG) to best address this market.
7. How long has this project been in the works?
In the late 1980s, top executives at Motorola had a vision for a new class of products that merged communications, computers and information services. In February of 1991, Motorola chief executive officer George Fisher met with John Sculley and Marc Porat to discuss the idea of personal communications; they invited Motorola to become part of the alliance. Since personal communications matched what George Fisher and others here at Motorola had envisioned as the next computing/communications wave, we agreed to participate. We've been working toward our goal of providing a personal wireless device ever since.
8. What led Motorola to consider jumping into the PDA/personal intelligent communicator fray?
We've been in the personal communication market for a long time now — pagers, cellular phones and two-way radios are basic types of personal communication devices. The move into the higher-end personal communication market was a well thought-out strategy that has been in the works since early 1990. With our wireless expertise we felt that we could make a real difference in this new category by providing a hand-held device with wireless communications capabilities. We also saw the market potential for creating a new class of devices.
9. What kind of processor is in the Motorola device?
Motorola, working closely with alliance members, has designed and manufactured cost-effective semiconductors for use specifically in personal intelligent communicators. One of the key components, code-named Dragon 1, is the core chip that integrates the central processing and general peripheral functions into one high performance, low voltage chip. A second highly integrated custom chip incorporates the bulk of the digital functions. (Further chip-related questions can be referred to Dan Rogers at 512/891-2000.)
10. Where will the product be manufactured?
The device will be manufactured at PWDG's Schaumburg, Ill., facility.
11. Will personal intelligent communicators go global?
Absolutely — in some countries faster than others, but that is to be expected. Two-way data networks have already been established in Hong Kong, Germany and the U.K. We mustn't forget that thanks to recent political changes abroad, four billion new consumers are entering the global marketplace and will be ready for devices that can improve their lives. General Magic Relationship
1. Why did a big company like Motorola choose to work with a little Silicon Valley start-up like General Magic?
While General Magic is a start-up in the strictest sense, Marc Porat and his team are no newcomers to the industry. You may remember we worked with a young upstart company with a funny name, Apple Computer, to supply microprocessors for its unique line of computers. When we enter into alliances, we look at the mission of the group and the credentials of the key players. In the case of General Magic, we have nothing but confidence in the team. Its overall mission supports our own vision of global, personal, wireless communications.
2. What is your opinion of General Magic's Magic Cap? Its prospects for becoming a world standard?
What a delight it will be to use this clever, user-friendly communicating application platform to navigate through the services and capabilities provided with it. As far as a world standard, we think it is significant to note that we have not only U.S.-based companies such as Motorola and Apple as alliance members, but Japanese consumer electronics companies such as Sony and Matsushita as well. Each one will be looking to leverage its investment, and it will be to each partner's advantage to promote the operating environment across national boundaries. Competitors
1. Why is Motorola getting back into the consumer electronics market after leaving it many years ago?
Our customers are leading us back into this area. Motorola has been a leader in wireless technology for more than 60 years. The market for these products is expanding into the consumer area, and we're following the trend. Also, we have proven our ability to compete successfully in the cellular telephone, paging and two-way radio markets as a developer and manufacturer. Through this experience we learned valuable winning strategies, including the importance of offering leading-edge technology and the highest quality products at the lowest cost and maintaining market leadership. We believe a personal communications device will follow a similar marketing strategy.
Market segments and distribution channels are converging. Devices aren't just for the elite professional; their use is expanding to the individual business consumer as well. Networks/Communicataions
1. You say that communications is a big differentiator between PDAs and personal intelligent communicators. How, exactly, will this product communicate wirelessly?
The Motorola user will subscribe to an RF network service (much like cellular telephone users subscribe to cellular service), and their transmissions will be sent over the airwaves.
2. Will this device talk only to other Motorola devices? If I have a Motorola device, what are my options for communicating with someone else?
The Motorola device will be compatible with all devices using General Magic's communicating applications platform. That is one of the advantages of standards. The device will also be able to communicate wirelessly with any computer equipped with the appropriate software and an RF modem, or with the appropriate software and a wireline modem.
3. You own part of ARDIS. Will the device work over this network?
We intend to support multiple wireless networks and will announce those networks at our own product announcement later this year. ARDIS has recently retargeted its efforts to serve horizontal markets, which makes it an ideal network for our initial device. Software
1. Will consumers be able to buy off-the-shelf software for the Motorola device?
Yes, Motorola views applications and peripheral components as essential to providing the user with the tools necessary to personalize their communication devices.
2. When can developers begin developing on Magic Cap?
Some development has already begun. Motorola will announce a formal developers' program in the near future.
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