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Technology Stocks : Qualcomm Incorporated (QCOM)
QCOM 178.29-1.6%Dec 12 9:30 AM EST
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To: gc who wrote ()10/4/1999 11:00:00 PM
From: marginmike  Read Replies (1) of 152472
 
You were reffering to margin % not profit amount. If The price of an Asic drops to 30 dollars and Qcom makes 40%(real margin on Asic) they net 15 dollars. If Samsung uses their own chip they must pay higher % of royalty. I would guess its closer to 7%(Koreans pay the highest royalty rates. some pay as much as 10%). The average cost of 3G handsets will be at least $150(this is what this is reffering to). Qcom looses about $5 dollars per phone. However if the market for CDMA grows by 300% it aint going to matter. Every analyst has predicted Q will lose 40-50% of ASIC market. However their projections for earnings havnt changed. As I stated before, Qcom MGMT has gone on record as saying that they will supply Samsung with Chips. If you looked at the history of CDMA ASIC developement you would soon lern that it will be virtually impossible for Samsung to have invented an ASIC with the budget they had projected. Therfore I can figure out that its all a bunch of BS, I am still waiting for that MOT Chip and that VLSI chip and that DSC chip that never arive. When they do they are like 1959 chevy's compared to S600 Mercedes. That is why someone is plotting to buy QCP. There will be chip competition, but Q will maintain a nice chunk of the market. AG EDWARDS put the value of Royalties to Q at $130 dollars a share. This means that the ASIC, OMNITRACS, HDR,WK,GSTRF are all not factored in. Do us all a favor if you dont own the stock get lost. You are neither a good stock trader, or a good Fundimental analyst.
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