Nagin, this is not Q vs. NOK like a baseball game. NOK has a different business model, so it's not surprising that its sales are higher. If you think NOK has faster sales growth, that is because you are not considering the low-margin biz. that QCOM has discarded in the past year. If you do not consider Q's growth on a pro forma basis, then you do not know what QCOM's about, IMO. Question is not who will "win"; it is IMO whether QCOM's biz model is valid in the long run. QCOM model highly dependent on IPR. Therefore, GMs very high. Question is: will QCOM be able to maintain the royalty-based net cash flow from its IPR going forward that it has today, even as it maintains a strong position in CDMA ASICs in a much larger future market. If you think this is true, then QCOM could become the most valuable co. on the planet. If you think it is false, then QCOM may not have much room to grow or may fall from present levels. If you are not sure, then you just take a step back and watch. Answers will out eventually.
W-cDMA debate gets down to these questions for QCOM investors. Some of these people are discussing this here to hear tero's side of the story as they do not want to be wearing rose-colored glasses. |
