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Technology Stocks : The New Qualcomm - a S&P500 company
QCOM 166.05+0.6%3:59 PM EST
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To: DownSouth who wrote (13022)6/23/2000 12:50:00 PM
From: Bux  Read Replies (1) of 13582
 
Are you referring to rumors that Nokia would agree to purchase ASIC's from Qualcomm? From a Qualcomm-centric point of view, this achieves that. From Nokia's viewpoint it is an imperfect and incomplete solution but keeps all their options open.

I assure you a 3G Nokia/Qualcomm agreement is a certainty, the only questions remaining is will it be to produce ASIC's or procure them from Qualcomm? This development tells us the "when". They will procure them from Qualcomm in the immediate term and hope they can develop competitive ASIC designs in the future at which point they would sign with Qualcomm to allow them to produce 3G CDMA ASIC's. If Qualcomm maintains their lead Nokia will just sign to procure ASIC's from Qualcomm.

The important thing for now is this relationship will add a lot of upside to Qualcomm's bottom line.

Bux
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