<<Frankly, I don't know how to reconcile these two, seemingly conflicting, or at least ambiguous, statements. My concern short term would be alleviated if I heard from Q that the Telson orders will more than make up for this shortfall>>
John, Korean demand will be modestly lower due to the handset subsidy ban. I think the analysts' assesment was about %5 of Q's earnings came from SK chip sales. Now, this component of the income would be modestly lower. In the 4th quarter. This news is about 1 month old right? Today announcement was a formalization of that information. The management had to come forth and state that very clearly. This Korean thing was factored into the stock price when we slid $10 - $12 into the $75 range.
The NOK/Telson/QCOM deal is brand new, and NOK will sell those CDMA phones around the globe, not in Korea. NOK's market share in SK is about 0%. The intent is use Telson's facilities to cover the Asia Pacific markets, where CDMA is grabbing market share from GSM. Jorma O, said that much; He said they were behind (and IMO he had no idea they were so far behind), and they will catch up. I think he had been lied to by his underlings as to the state of affairs in their own CDMA efforts, and now I think some heads will roll, channels will open, more deals will be made. As NOK sees how sweet it is to just put QUALCOMM inside and ship'em, they will say "what were we thinking for eight years, trying to develop our own ASICs". |
