Ericsson overlook? Message Board

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Technology Stocks : Ericsson overlook?

ERIC 9.400

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2:10 PM EST

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To: scots40 who wrote (4655)	4/18/2001 9:40:07 PM
From: Puck	Read Replies (1) of 5390

What if, after becoming dependent on Qualcomm, Qualcomm then at some future time decided to stop supplying them, for whatever reason. Relying on a single supplier, as they did with Phillips for LCD displays, has burned them severely in the past. Also, suppose that after becoming completely dependent on Qualcomm, Qualcomm increased the prices of its chipsets to a degree that Ericsson found unacceptable. Becoming mortally dependent on a single supplier without other viable options entails unacceptable business risks, which should be obvious to you.

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