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Death of Voq smartphone from Sierra Wireless is near - Sierra Wireless is being sued for releasing Voq ! February 03, 2005 [MS Smartphone] | By Edward J. R. Instead of designing good smartphone, Sierra Wireless was spending a lot of money on advertisements in magazines and on such things as yacht (picture from 3GSM congress 2004): 
Sierra Wireless even dared to release Microsoft Smartphone without Bluetooth. Here is a quote from our interview with Michael Tatelman - a Vice President of Motorola: msmobiles.com : yes, I told them that it´s [the voq] big and no Bluetooth so what target market are YOU targeting? I guess professional users? Their [of Sierra Wireless] said that their market research indicated that enterprises don´t want camera and Bluetooth. Michael Tatelman : well, certainly Bluetooth, in United States, in many countries, law mandates that it has Bluetooth for hands free operation, right, so Bluetooth is EXTREMELY [he stresses this word] important msmobiles.com : in Europe cars are being sold with Bluetooth... Michael Tatelman : absolutely, .... that would be bad market research [not to include Bluetooth] * * * * * And now Sierra Wireless is being sued because introducing the Voq Smartphone was flawed and its business model was not working! We have been warning Sierra Wireless the whole time, but they were not listening. Therefore we agree with people who sue Sierra Wireless! They are right: Sierra’s recent venture into the Smartphone market with the introduction of its new Voq line was a serious misstep. Some quotes from the law firm follow... Lerach Coughlin Stoia Geller Rudman & Robbins LLP (“Lerach Coughlin”) announced that a class action lawsuit has been commenced in the United States District Court for the Southern District of New York on behalf of purchasers of Sierra Wireless, Inc. (“Sierra”) (NASDAQ:SWIR) common stock during the period between January 28, 2004 and January 26, 2005 (the “Class Period”). [...] The Complaint alleges that, throughout the Class Period, defendants issued numerous statements concerning the Company’s performance and future prospects. As alleged in the Complaint, these statements were materially false and misleading when made as they failed to disclose the following material adverse facts which were then known to defendants or recklessly disregarded by them: (i) that Sierra’s strategy to correct its deficiency in technology as compared to its competitors by introducing the Voq Smartphone was flawed and its business model was not working; (ii) that Sierra was facing increasing competition, intensified by its failure to enter into the WCDMA (wideband code-division multiple access) market; (iii) that Sierra’s recent venture into the Smartphone market with the introduction of its new Voq line was a serious misstep, as it did little to add revenue and further seriously harmed Sierra’s relationship with a prime customer palmOne as its Voq Smartphone would compete with palmOne’s Treo – the product for which Sierra was a supplier; (iv) that Sierra’s dependence on revenue from palmOne in its original equipment manufacturer (“OEM”) business – selling embedded modules that allow other device manufacturers to give their products wireless connectivity – was substantially greater than had been reported; and (v) that Sierra’s customers were materially over-inventoried, which would lead to greatly diminished orders and sales in future quarters. To learn more directly from the law firm that is suing, click here. Conclusions: Sierra Wireless released Voq - a smartphone without Bluetooth and without camera that was very big and the only innovation was a very unusable foldable Qwerty keyboard. By releasing smartphone, that directly competes with palmOne devices they angered palmOne and it stopped ordering wireless modules from Sierra Wireless. Reality was that majority of business revenues of Sierra Wireless depended on orders from palmOne and once they stopped and sales of Voq obviously were not satisfying (after all it is very badly designed smartphone) the situation at Sierra Wireless got very nasty. On top of all this Sierra Wireless also neglected WCDMA market, which is the biggest 3G market and global standard for 3G. Sierra Wireless is one of those companies that don't listen to users, spent much more money on marketing than on research and that simply deserve being sued...  Post your comment (free registration is required to post, but if you register you can edit your posts later)
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