Openwave will integrate Magic4’s software with its Phone Suite Version 7 software to create what Listwin said will be a potent combination, and not just in terms of market share.
They had good market share but [more importantly] a much broader portfolio in rich messaging, Listwin told ComputerWire.
Magic4 is estimated to own between 25% and 30% of the total handset messaging software market, counting Motorola, Samsung, Panasonic, LG, Sagem, Siemens, and Sony Ericsson among its handset manufacturer licensees.
The company’s portfolio includes SMS text messaging, enhanced message service, multimedia messaging, push-to-talk over cellular, instant messaging, video and email clients. Listwin praised the scope of Magic4’s offerings and the depth of integration between the components.
By contrast, Openwave currently has about 10% of this space, although its share of the market for mobile web browsers is much higher. Openwave’s Mobile Browser shipped in over 50% of new data-enabled phones in 2003, and 47 mobile device manufacturers have licensed the software, which has now shipped in more than 500 million handsets worldwide.
The combination of Magic4’s messaging software with Openwave’s Phone Suite V7 leaves Nokia as Openwave’s major opposition in the handset software space and the clear leader in supplying third-party products.
Phone Suite V7 combines Openwave’s Mobile Browser, Mobile Messaging Client, a file and application manager and the RealOne media player from Real Networks. Magic4’s messaging applications will presumably replace or be combined with Openwave’s in a revised product.
Listwin said the purchase will put the company ahead of mobile operating system vendor Symbian with expected revenue from client software sales of around $150m next year. Phone Suite V7 is set to make its commercial debut in handsets for NTT DoCoMo’s Japanese network in the near future. Vodafone is also preparing handsets using the software for launch before the end of the year.
Warrington, UK-based Magic4 brings 140 staff to Openwave, marking a turn around in fortunes for the Redwood City, California-based mobile telecoms software vendor. Openwave laid off 180 staff, 12% of its workforce, in June last year as part of a cost reduction package. Listwin said he expects Openwave to be profitable at the net level by the third quarter of 2004 at the latest.
