The New Qualcomm - a S&P500 company Message Board

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

QCOM 166.07

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1:47 PM EST

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To: Michael who wrote (1408)	9/11/1999 5:39:00 PM
From: Keith Feral	Read Replies (2) of 13582

Michael: I think our friend MP is fanatically obsessed with the notion that QCOM is going to sell the handset division based upon the model that INTC established in the PC market. The problem with his analogy between the two co's is that a Pentium chip sells for 10 times more than a MSM ASIC chip. QCOM needs to keep the handset division because the handsets generate a larger pretax profit than ASICs even though the profit margin is lower. Do you think Gates would have sold Windows 10 years ago as they were beginning to lock up the market for operating systems to focus on the Internet market? There is no reasonable price that another company could pay for QCOM's handset division. Keep in mind that QCOM will be selling handsets in new markets next year like Mexico and Brazil. Through their purchase of CDMA spectrum in those markets, they are guaranteed a large percentage of the overall market share in those countries. As for me, I would never consider buying a MOT or NOK product because I know they suck. The thought of selling the handset division to ERICY borders on the absurd. I do not believe that QCOM needs to accelerate the market acceptance of CDMA by catapulting their handset division into the horizon. QCOM & CDMA have already won the most important battles. There is no reason to appease the corporated interests of the competition that is currently trailing QCOM in CDMA handsets. QCOM is #1 for CDMA handsets, period!! With capacity increasing from 600,000 phones to 1,000,000 phones per month next quarter, the argument that QCOM lacks capacity no longer makes sense. CDMA handsets are only being sold in Korea, Japan, & the US right now. Mexico and Brazil will be the biggest markets added to the list next year. QCOM happens to have both those handset markets locked up.

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