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Technology Stocks : The New Qualcomm - a S&P500 company
QCOM 174.690.0%Dec 24 12:59 PM EST
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To: Webster who wrote (4438)12/22/1999 7:46:00 PM
From: slacker711  Read Replies (4) of 13582
 
Ok someone explain to me objectively what Qualcomm got out of this deal...Here's my concerns:

1) Kyocera already uses Qualcomm's chips. Yes, they have an older line-up of phones that had used DSP chipsets but the most recent models (IS-95B) used the MSM's. Qualcomm did not gain a customer (same concern that I had if Ericsson bought the division).

2) Kyocera seems to be a world-class manufacturer.....but so was Sony. Hypothetically, if Sony had continued in the QPE relationship, would we be better off? Who would you rather have as a partner....Sony or Kyocera?

3) Kyocera was already intimately tied to CDMA. You could make an argument that no handset manufacturer, with the exception of Samsung, had a greater stake in the success of CDMA than Kyocera.....they own over 20% of the new DDI.

4) Nokia owns 30% of the Chinese handset market...I don't buy the argument that Kyocera will help open up the Chinese market.

A couple of caveats....I am not saying that Qualcomm did not get the best deal possible. Who actually knows if Nokia was even in the bidding. However I don't see the huge posatives that everybody else does....please explain to me how Qualcomm is much better off than if they had simply kept the division themselves and continued to innovate. I don't mean from a financial situation but from a strategic one....

Slacker
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