QCOM: The Sleeper Awakes
CNBC on NOK/QCOM
(I got this independently, so I'm not giving Eric credit for putting it up on New Q just now)
cnbc.com
Nokia executives have met 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 were at Qualcomm's headquarters in San Diego." The phones Telson is to make for the Korean market will use Qualcomm chipsets, said Nokia spokeswoman Megan Matthews. But she said the arrangement is a short- to medium-term solution to get Nokia phones into the Korean market. "We are not in negotiations with Qualcomm for direct purchase of their chipsets," Matthews said. "We are sourcing a certain product with an outside vendor (Telson) that will contain chipsets manufactured by Qualcomm. All these products will be Nokia-branded and have the Nokia use and feel." She added that the company will continue to produce its own CDMA-based chipsets. "This (Telson arrangement) is only to fill a time gap," Matthews said. She said the phones will be sold into the Korean market beginning in 2001. Nokia has no penetration in the Korean market, even though one of its largest plants is located there. Matthews said the phones will be second-generation handsets, which are capable of handling more data applications. Mark Roberts, an analyst with First Union Securities, said if the Telson phone is successful, it could be sold in other markets. "The significance for Qualcomm is that the phone will be designed around the Qualcomm chipset, not Nokia's," he said. "For every CDMA phone that's sold, a royalty has to be paid to Qualcomm. When Qualcomm can sell a chipset into the phone as well ask a royalty, it doubles their revenue."
SSB on Telson deal
Message 13938120
Trivial, but I had noted the same thing, and it could be considered a leading indicator...
Message 13938521
Course, there's always gotta be one pooper at every party...
Message 13938535
tekboy/Ares@Ithinkwehavewormsign.com |
