Motorola Inc.`s microprocessor operation got a big boost Wednesday from the announcement by Apple Computer Inc. and International Business Machines Corp. that Motorola will develop a new microprocessor chip for use by both firms.
Motorola will work with IBM to develop ”Power PC” microprocessors for use in workstations and file servers, according to the announcement.
This is good news for Schaumburg-based Motorola because it cements the firm`s long-term role as a key supplier to Apple and because it will open new markets with IBM and other computer firms that want to offer compatible open- systems products.
There had been speculation in the trade press that Apple might be looking for another supplier to replace Motorola in providing the brains of future computer products.
”There`s no doubt that this really raises Motorola`s fortunes,” said Will Cappelli, a technical analyst for New Science Associates, a Southport, Conn., research and consulting firm.
”Motorola had problems making a success of its 88000 (RISC) products, and its future looked bleak without an announcement like this,” he said.
But Cappelli cautioned that Motorola`s role ”is a subtle sticking point in the IBM-Apple announcement” because engineers from Motorola will have to engage in serious, complex cooperation with IBM engineers to design a new chip based on technology from both teams.
”There will be some very big egos involved,” he said.
Another problem with the announcement may be that many of Motorola`s customers who compete against IBM may not see the company`s new relationship with Big Blue as such a good thing.
Motorola people were upbeat about the announcement Wednesday and downplayed any negative connotations.
”We`ve always enjoyed a very good relationship with Apple Computer,”
said Kevin Meyer, a Motorola product marketing and applications manager. ”It stems from the early eighties when they chose our 68000 microprocessor family for their Lisa and Macintosh products.
”Although there`s been speculation in the press (about Apple seeking a new supplier), I`ve always believed our relationship has been firm.”
It will be two to three years before the new chip will go to market, said Les Cruddele, vice president of Motorola`s high-end microprocessor division. Designing and building it will be challenging, but no more so than any other new generation of microprocessor, he said.
Because the deal should open up new markets, Motorola expects it will sell more chips and increase market share, Cruddele said.
Analysts tended to agree with Motorola`s assessment.
”It really shores up Motorola`s relation with Apple,” said Bob Djurdjevic, president of Annex Research, a Phoenix-based consultant. ”If Motorola also sells technology to IBM and others, it should gain market share.”
Motorola sought to calm fears among its current customers that the new arrangement with IBM and Apple would divert attention away from existing microchips. Murray Goldman, a Motorola senior vice president, issued a statement that the company will continue working on new generations of existing microprocessor families.
