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Technology Stocks : Qualcomm Incorporated (QCOM)
QCOM 175.84+1.1%10:20 AM EST

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To: DWB who wrote (116004)3/26/2002 1:14:04 PM
From: arun gera  Read Replies (1) of 152472
 
>Or are you telling me the Chinese won't buy CDMA handsets as replacements because of the superior quality of GSM?>

Some questions. Who directly sponsors the handset in the Chinese wireless market - the carrier or the customer? Does the customer buy the GSM handset from anywhere and then gets it activated by the carrier?

The price of a new handset in China is probably $100-200. That should be pretty much a month's salary of an average knowledge worker. If the customer buys the handset, that's a big investment (unless the handset is a used one). And the subscriber will stay with the carriers that can support his handset.

The price of the handset in the richer nations is very small in comparison to monthly incomes. And even that low amount is subsidized by the carriers to attract customers.

So it is amazing that the Chinese are willing to put so much down to acquire a hand-set. Obviously, 100 million of them have done it once. But will they do it again and again? Anybody have any churn numbers out of China?

Arun
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