Reflections on a young Gorilla:
As a lot of you can imagine, being 100% Q this last 6 weeks has been an interesting experience for me, to say the least! As I was driving home from dancing in LA tonight, my thoughts were on, "How high is too high?"
First off, lets realize that if this was 1992, and this was happening, Q would probably is at about 200 right now, if that. The Market has inflated, and I see no reason for it to stop inflating. The economy is excellent, 401 pensions are forcing money in, compounded by the fact that the baby boomer generation is the one putting the bucks away now.
But, as I look to the future, I am reminded of what I said last April about Q. This is not a normal Gorilla. The lock they have on their market is not due to the normal evolutionary engineering that results in a patient, it is a break though in Physics at as "Law of Nature" level.
And the break through came at the perfect time. It came at a time when the market was ready to explode with wireless communication. Q has a system that is not only superior, but is so much cheaper than the others to install and run that other systems really cannot compete with it.
Compare that with Cisco or Intel. With them, you pay a premium price for a better system. Not with CDMA!
Compare it to MSFT. There you buy a system that engineers hate. With Qualcomm, you buy a system that even engineers with competitive companies are starting to admit is superior.
If you are selling Q to a vendor, and he complains about the royalty that Q gets, you can say,
" What difference does is make to you whether we get 1%, 5% 10% or 100% of what you pay as a royalty? You are paying to install the best system, that is also the cheapest to operate."
The fundamentals of this company, combined with the growth available right now in the wireless market, have resulted in an opportunity that I do not believe has ever happened before in business history.
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