Ericsson overlook? Message Board

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Technology Stocks : Ericsson overlook?

ERIC 9.570

-1.5%

3:59 PM EST

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To: Mika Kukkanen who wrote (2626)	1/25/1999 7:24:00 PM
From: Clarksterh	of 5390

Mika - In rough terms the move from 4.096 down to 3.6864 is a reduction of 10% which equates to 10% reduction of capacity, e.g., a 10% reduction of turnover, which in turn means 10% less profits. Come on. You know this is like comparing box volume by measuring the width without the height and depth. You know that if the whole 'volume' (Erlangs/MHz) were compared Ericsson would lose, by their own specs. You know that Ericsson themselves were willing to change the rate to something only 4% away from Qualcomm's need - probably because it didn't easily fit in 5MHz (thought question: is 10%? extra cost, 15%? less battery time worth 10% extra capacity?). You have ample evidence that Ericsson spins better than James Carville - if today's press release isn't spin then nothing is. Is 4% faster chip rate worth the hold up? Answer, no way on the face of the planet, since the uncertainty on the capacity is much greater than this (+/-20%). So why is Ericsson doing this? They feel squeezed between a rock and a hard place, and any delay/confusion is good in that it allows time for them to extricate themselves. Clark

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