Maurice, Who seen what? If Gregg Powers didn't see it and questioned the sale of the handset division why did Tero have foresight or get lucky? Give credit where credit is due.
You brag that Qualcomm had the wit to avoid the long running disaster but it was only Tero that agreed on that issue. He knew it was a disaster and said so if he's lucky so is Qualcomm. (I bet Tero tipped them off)
If we are honest with ourselves none of us thought the Q would sell the handset division including Gregg.
You said : QUALCOMM had the wit to avoid a long-running disaster by recognizing early that their own handset division would not be able to compete, so sold it to Kyocera, which could. You had the foresight [or luck - we don't really know whether we are prescient or lucky, even if the facts largely support our reasoning] to recognize that QUALCOMM wouldn't make it in handsets.
Sell the handset division?
Pray tell, why should the company do that? Hopefully not because some (still) misinformed analysts would prefer simpler spreadsheets! I presume you realize that Qualcomm has a substantial embedded margin advantage in handsets? You recognize, of course, that the company does not have to 'pay itself' royalties? On top of this, everybody else is either buying ASICs from Qualcomm (the margin on which QC again does not have to 'pay itself') or is spending a fortune (on a fully allocated, unit cost, basis) to develop their own chip. Given these dynamics, QC should have an embedded margin advantage somewhere between 500 and 700 basis points....which is roughly twice the operating margin achieved by MOT its entirety last quarter. After some annoying fits and starts, the team of Jacobs and Dollard seem to be making lots of progress. My vote would be to let them do their thing.
It amazes me that Dr. Jacobs has brought us this far and people still doubt his judgment. Oh well.
Best regards,
Gregg
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