I'm sorry, but this sounds like the latest new way for QCOM to develop a dud. Perhaps it will be of use to Verizon, but to a carrier contemplating infra investments, a GSM/CDMA dual-mode begs the question: why the hell do we need CDMA? That is the thought Unicom may have.
The amazing thing is that none of our QCOM friends seem to have connected the dots between the persistent component shortages and the reallocation of resources towards the highest volume combinations; i.e., WCDMA-only, GSM/WCDMA, GSM/TDMA/WCDMA. Ovum counted 57 different combinations in the multi-mode chip market. CDMAOne/CDMA2000 compatibility to follow?
The removal of phone subsidies in Korea is not likely to affect the current quarter and in the past has not had a lasting or dramatic impact on Qualcomm's (chip) business," PaineWebber equity analyst Walter Piecyk wrote in a research report two weeks ago, in which he reiterated his $250 price target for the stock.
The Korean subsidy in question is about $175-$200 per handset. Anybody who tells you that the removal of that subsidy is not going to affect the handset replacement cycle is nuts.
Given the manic nature of the 1999 market, Piecyk's enthusiasm towards QCOM can perhaps be rationalized, but there seems to be no excuse for the fact that this guy came from Nextel and should know all about the painful nuances of a stranded platform, no matter the technical merits.
That says it all! What will QCOM do to get China????
What will it NOT do to get China?<g> |
