SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : Qualcomm Moderated Thread - please read rules before posting
QCOM 147.19-3.6%Feb 3 3:59 PM EST
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: William Hunt who wrote (383)7/7/2000 9:26:02 AM
From: Jeff Vayda  Read Replies (1) of 197507
 
I dont think the Korean's view this as a Zero Sum Game. They have shown they can produce superior CDMA products. The export market is very lucrative. IMO, the Telcos went to the government and asked for the mandated subsidy ban. The subsidies (and the churn it produces) seriously cuts into the profit margins of all the companies. In order to save face (and not be crushed in the market place if one tried it unilaterally) the government action was the only way they could get out from under the dependency the telcos established in their consumers.

Stopping the churn reduces costs to the telecos and has the added benefit of freeing up capacity for a more profitable export market.

This is all about money and in the commodity business money means market share. Koreans dominate CDMA market share. Where to turn? WCDMA. Is that so difficult? Does it mean they will turn their backs on their dominance of CDMA market share? Not a chance. All they are doing is attempting to increase worldwide market share. In the government supported industrial relationship that is Korean phone production, some allowances to WCDMA are only logical - and makes sound business sense.

The best course for them is to play both sides of the fence - for the same reason it was the best course for Qualcom to exit infrastructure and handsets.

Jeff Vayda
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2026 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News