Dr J interview on CNBC notes
Ron
What about that issue that Martha just raised with respect to WCDMA technology, the technology that will allow wireless handset users to engage in more data and internet access type activities, how important is that going to be for you and where are you with respect to your competition?
Dr J
Well I think that next generation technology is very important. I think that the wireless internet access is going to be the next major growth area, even though voice is going to continue to grow rapidly. The technology for that includes our 1X CDMA2000, which is actually going into use in existing spectrum, perhaps before the end of this year and very broadly next year. And then beyond that WCDMA. So we see that this as growth in the CDMA technology area as acceptance of CDMA and all that is positive for QUALCOMM.
Ron
Will you dominate the space though?
Dr J
Well I think there will be additional competitors, We have a very high market share of the chip space right now, and so I think we probably will come down, but we will come down in a much larger market. If the entire world is now in their third generation agreed in going to CDMA, that market is going to grow very rapidly, and so we will have a significant share, we believe, because of our head start in CDMA and yes, we will end up with a growing business there.
Ron
Well let ask you, you have gotten some good news on the patent front in both Europe and Japan in recent days but investors, judging by the behavior of your stock not only tonight but recently, been focusing on the negatives, the loss of business in South Korea and concerns still on how you will fare in China, is there any hope that those two areas of concern will reverse themselves anytime soon?
Dr J
Well in Korea, the technology will be going to third generation, the 1X technology is going into place, we think that will cause a spirt in handset sales. But that won't happen this coming quarter, that will be just beyond that. And so, as long as the subsidy is in place, the subsidy elimination is in place, I think that, that will hold down handset sales in Korea. On the other hand, sales will be increasing elsewhere, and we expect to see that get picked up. But we are being hurt as far as sales in Korea until the subsidy elimination is taken away. The growth elsewhere though, could be quite exciting.
Ron
Let me ask you about your stock price, which has come down from an all time high of $200 on a split adjusted basis, down to the current price near $60, it has been lower than that. Is it possible that you have become inexpensive enough now for a larger company to swoop down and acquire you on the cheap?
Dr J
Well a year or so ago , a year and a half ago, I was really quite worried about that, and it is always a concern, but we are in somewhat of a unique situation, because of our large income from intellectual property, there are many companies that are not positioned to make such a move. And I think that we are going to continue to improve, we have a momentary glitch here, so no, I don't really expect that to occur.
Ron
Mr Jacobs, it is always a pleasure to have you, thank you for joining us. |
