Could a WCDMA deal between NOK and Q be in the making? Stay tuned.
Nokia, Qualcomm Execs Meet About Chipsets, Analyst Says
Dow Jones News Service ~ June 23, 2000 ~ 12:39 pm EST
By Johnathan Burns
NEW YORK (Dow Jones)--Nokia Corp. (NOK) executives are meeting with Qualcomm Inc. (QCOM) officials about the future use of Qualcomm's CDMA-wireless technology chipsets, an analyst said Friday.
The talks, which have not been confirmed by the companies, could represent a radical shift in Nokia's stance toward using Qualcomm's chips. Nokia has long maintained it will use only its own CDMA chipsets in wireless phones.
Pete Peterson, telecommunications analyst with Prudential Securities, said "we have confirmation that Nokia executives are at Qualcomm's headquarters in San Diego."
Additionally, Peterson said his contacts within Nokia said an agreement the company announced Friday with Korean phone maker Telson Electronics Co. will lead to the indirect supply of Qualcomm's chips into Nokia-designed phones.
"Nokia has positioned themselves in a way that they can claim they are not using Qualcomm chipsets," he said. "Nokia has said all along that they won't use anyone's chipsets but their own. Now, it looks like they have an indirect deal."
Nokia's usage of Qualcomm chipsets would be a huge win for Qualcomm due to the sheer branding power of Nokia, the world's largest handset maker.
"There's no doubt there's high customer affinity for Nokia products," Peterson said.
He noted that Nokia has tremendous power in pushing usage of CDMA technology, but its own CDMA chipsets are seen as less efficient than Qualcomm's.
"We strongly believe both in features and technology, Qualcomm's chipset is far superior to anyone else's," Peterson said.
Neither Qualcomm nor Nokia officials could be immediately reached for comment.
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