Qualcomm Incorporated (QCOM) Message Board

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Technology Stocks : Qualcomm Incorporated (QCOM)

QCOM 159.42

-1.2%

Jan 16 9:30 AM EST

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To: Jenne who wrote (53679)	12/12/1999 8:56:00 PM
From: Bux	Read Replies (1) of 152472

CDMA in China. Jenn, so far all responders have declined to attach a dollar value. So will I but it is important to realize that any future gains from a China CDMA build-out are not modeled into the analysts revenue projections that are commonly used to calculate PE's, growth rates, and other valuation figures. The continuing royalty stream from handset sales is substantial and certain for any substantial CDMA build-out. Some high margin ASIC sales (handsets and infrastructure) are a certainty. The percentage of Q ASICS that end up in China will determine the true value to Q of any build-out there. I imagine the percentage of Q ASICS will be high for for the initial build-out and the market share down the road will be determined by other ASIC licensees ability to come out with competitive ASICS. I can't imagine Q would license others to build ASICS if they didn't expect them to be able to succeed. Since ASIC margins are > 40%, the potential is enormous. I don't know if there will be one time license fees or if most of those have already been collected. Just remember, China is a huge market. Bux

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