Slacker:
Agree with your point #1--Kyocera is already using Q ASICs in their new models. This is not a new customer. The transformation of QPE to a royalty paying, ASIC buying customer is a positive, of course.
#2--Kyocera is a world class manufacturer, but not of handsets.
#3--I see Kyocera's exposure to the new KDD/DDI/IDO as a good reason for them to be chosen as the buyer. They are definitely motivated to speed up the deployment of the advanced features of CDMA so as to put DoCoMo in a position that is far from competitive. This, I believe, is a given. They will deploy high and higher speed data far in advance of DoCoMo.
#4--can't comment on the Chinese market. I think anyone that does is purely speculating. I will believe that CDMA is being deployed there when I see the cash in the till. Until then, all chatter.
One point not discussed here was a comment by Jacobs that the royalties paid by Kyocera remain the same as they were previously, and that they apply equally to 3G. There was also a comment about no change in royalty rates being a key in picking Kyocera. That tells me that Nokia or Motorola, or both, were strongarming Q for lower rates. Bravo for not caving in Dr. Jacobs. If Nokia wants to continue to stumble, let 'em. It doesn't hurt anyone but them. I can just imagine the high quality W-CDMA systems that they will be putting out if the simpler IS-95 is beyond them. Is Jacobs really setting up the Europeans for the grandest fall of all? Will high speed CDMA wireless deployments in Japan and Korea, as well as the US bring shame upon the GSM front who will be woefully behind in their own 3G scheme? I admit that I would have rather seen Nokia join the revolution, but remain on the dark side they must. And if they must, they will pay.
What does Kyocera bring QCOM? Well, they paid up the cash(not much I'm sure), they signed the contract to use Q ASICs for 5 years, and they agreed to this goofy set up with the R&D division(do you really think cost plus will ADD to margins???). They turned away from DSP and the Intel power behind them, in favor of a QCOM led attack on Japan. That may be more of a plus than I think. Otherwise, the synergies escape me. I'm open to suggestions. |
