The New Qualcomm - a S&P500 company Message Board

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

QCOM 151.72

-0.7%

2:31 PM EST

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To: idler who wrote (1379)	9/10/1999 12:04:00 PM
From: w molloy	Read Replies (2) of 13582

>> Korean phone manufacturers could save millions ... Idler writes "The way this is phrased, it appears to be incorrectly implying that other chip set makers do not have to pay royalties to Qualcomm and that's why they can offer such lower prices. I therefore found the article very confusing, unless the guy who wrote it just doesn't know what he's talking about, which appears to be the case." The writer implies nothing of the sort. Top three reasons why manufacturers will use chipsets other than QCOM 1. Second sourcing 2. LSI DSPc et al offer a software stack which is much easier to build a user interface on top of 3. LSi and DSPc are cheaper. QCOM still receive a license fee. Whether it compensates QCOM for loss of the fat profit they make on an ASIC sale is open to debate. Any takers? w.

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