I think the overreaction will be limited to the early trading. If INTC starts trading below $50 tomorrow, we should see a nice bounce from the opening bell. After they sort out the problems, most of the negativity should be focused on the pc chip makers.
When I reflect on QCOM's accomplishments on silicon, CDMA, Bluetooth, GPS, HDR, Packet Video, MPEG, I have to ask myself what in the hell has Intel been doing for the past 3 years. Did they think that Pentium was the end all for pc computing? Maybe, but the telecom war is going to devastate the pc makers.
Remember the devastation of TV manufacturers as people fell in love with PC's. Maybe the real warning for the pc industry is that they failed completely with respect to digitalization of the internet. They just couldn't deliver their beloved fiber to the last mile. I have to laugh whenever I leave my house watching these idiots try to install fiber for my neighborhood. The funniest thing about the ATT digital cable theme is that it doesn't work for digital tv's or hdtv's. What a joke!! Sales guy at circuit city told me not to bother with digital or hdtv unless I had a satellite feed (hold on G*).
I can't wait for QCOM to announce a product for the TV industry. Compare all the flops in fiber and dial up service to QCOM's digital connections to the internet that will provide speeds approaching 5 MBPS next year. I find it kind of amazing that QCOM accomplished these digital last mile solutions out of thin air. No wonder why the Euro's though QCOM's claims violated the basic laws of physics. Nontheless, QCOM has delivered every standard they have promised on schedule.
Telecom is going to commoditize the pc industry for both software and hardware. It's all going to boil down to internet links and networked (wireless) based computing. I don't need windows or microprocessors for a wireless network computing environment.
QCOM is the most exciting technology in the world today. The days of CSCO, MSFT, INTC, and DELL have ended with a decade of speed and memory improvements. Big deal. It's QCOm's turn to take over and make all of the information in the internet available when you need IT. I think that QCOM should charge double whatever INTC charges for a pentium. The overall value of their ASIC's are worth 10 times the junk price of a pentium. |
