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Strategies & Market Trends : Gorilla and King Portfolio Candidates

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To: EnricoPalazzo who wrote (49226)	11/28/2001 10:12:59 PM
From: slacker711	Read Replies (2) of 54805

$500 is an awful lot of money for a cell phone, even a fancy-schmancy one. And I don't think I'm way out of the mainstream when I say that that's way more than I'd pay for a cell phone. $200 is pretty steep as it is. A couple of thoughts.... 1) The $500 pricetag is the wholesale price of the handset. The retail price would be significantly less....likely $250-$300. I believe that is the predicted retail price of the 7650 in most countries. 2) You wont be buying just a handset. Mobile phones are going to integrate digital cameras, MP3 players, and elements of a PDA in them. The Nokia 9210 retails for significantly higher than $500....and it just became the best selling PDA in Europe. If the 7650 does well it could become the best selling digital camera in the world. I also doubt that stand-alone MP3 players will be outselling handsets equipped with them in the near future. Mucho is right that their is a cap on the royalty that Qualcomm can expect. However, my guess (and that's all it is) is that the cap is above $500. Slacker

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