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Technology Stocks : Qualcomm Moderated Thread - please read rules before posting
QCOM 174.690.0%Dec 24 12:59 PM EST

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To: Dexter Lives On who wrote (19505)2/24/2002 5:28:26 PM
From: slacker711  Read Replies (2) of 197031
 
If there is a shortage of voice capacity, why are prices declining at an alarming rate. Economics 101 dictates that there must be an oversupply, or that demand is decreasing.

Hmmm....the price of DVD players is falling. Lack of demand? Oversupply? I say neither.

The dropping prices of wireless minutes (and DVD players) indicates that the capacity crisis is easing. It does not mean that there is an overcapacity.

The two scenarios are dramatically different. Wireless operators are still selling minutes far above their incremental cost to produce a mintute.

Slacker
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