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Technology Stocks : The New Qualcomm - a S&P500 company

QCOM 166.81

-4.1%

Nov 17 3:59 PM EST

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To: Caxton Rhodes who wrote (23)	7/23/1999 9:33:00 AM
From: quidditch	Read Replies (2) of 13582

CC on ASP's: Something I'd been meaning to post: On the CC, my notes show the following: H&Q analyst asked about ASP erosion amidst strong demand for handsets. TT responded, no marked change in ASP according to plan. Warburg analyst immediately followed up: should ASP's firm the rest of Fiscal '99: TT: ASPs should decline about 20% p.a. Later, in response to BofA analyst question on "bring forward" (recurrent) on royalties for Q-3, TT said ASP's in both ASICs and handsets should continue to decline. He then went on to talk about differential pricing on volume shipments. Thus, management was, and has been, very clear on the forward view on ASPs. The question is how quickly, and for how long, management can maintain improvement in margins to offset the ASP erosion (obviously, this does not apply to reduction in royalty amount due to ASP declines). Hopefully, ASP erosion cycle will be arrested once net capable and 3G equipment are rolled out. Best regards. Steven PS Sorry, thread, for being so out of step in timing.

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