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Camera Phone Components in Short Supply
Posted: 04-Dec-2003 [Source: Motorola]

[According to Motorola, the strong demand for camera phones is outpacing the supply of components.]

Libertyville, Ill. -- Tom Lynch, President of the Personal Communications Sector at Motorola, Inc. (NYSE:MOT), said today that while the company's new integrated-camera handsets are winning rave reviews with industry experts, mobile operators and consumers, supply constraints for integrated-camera components are posing a challenge to delivery efforts.

"The Motorola V300 and V500 began shipping earlier in the quarter and are available today, and the V600 will ship imminently," Lynch said. "Unit volumes, however, are lower than our customers are asking for due to supply constraints for the integrated-camera components."

"We share our customers' disappointment in the current situation," Lynch added. "We are doing everything possible to accelerate the supply of camera components -- without compromising the quality of our 'phone-first' performance or of the picture-messaging experience."

Consistent with the company's prior guidance for PCS, 18 new phones will ship in the 4th Quarter, 7 featuring color displays and 8 featuring color displays and integrated cameras.

"The supply constraint for integrated-camera components is an industry-wide problem," said Bob Perez, Vice President and General Manager of Supply Chain Operations for Motorola PCS. "Motorola is feeling a larger impact because of the extremely limited supply of the smaller camera technology that we use for our handsets, which enables a compelling clamshell form factor and stylish design."

Motorola PCS executives added that the demand trends are very strong for Motorola handsets in North America, Europe and Asia.

"Everyone wants these phones," said Geoffrey Frost, Chief Brand Officer for Motorola. "We're doing everything we can to work with our customers to satisfy demand, and we truly appreciate the support that our customers have demonstrated."

Today, Motorola has 12 integrated-camera handsets available on the market -- with models available in North America, Europe and Asia enjoying strong demand from wireless operators and consumers alike.

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