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Technology Stocks : The New Qualcomm - a S&P500 company
QCOM 175.15+0.3%10:51 AM EST
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To: the_rich_janitor who wrote (7427)3/10/2000 9:29:00 PM
From: Randall Knight  Read Replies (1) of 13582
 
2) Nokia licenses MSM design for a royalty of $ 1/4X per chip.

I don't see how this could work. Would NOK only get to make 1x chips and then use that design to advance their own designs? Would NOK get the design for every new chip the Q makes? Would NOK only get to use the chips in their own phones? Would NOK keep these designs secret? It just doesn't seem feasible.

Also, what would stop Nokia from making a GSM/CDMA dual mode chip using Q's 1x design? Wouldn't that tick off Q's other customers?

I think that QCOM is in the catbird seat on this issue. Remember that Nokia, for all of their posturing and marketing power, is still a vendor to the carriers. What the carriers demand is what Nokia will have to deliver. That is a phone with 1x capability and they need to have it right now.

Any thoughts?
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