Fill a gap from 3 years ago? That's a laugh for two reasons. 1) Gaps from 3 years ago are technically irrelevant. 2) that gap is related to fundamental earnings events, sale of infra, deal with ericy, not to mention sale of phone division.
The stock is currently in a down channel. There is no technical reason to target 18. If it broke the major resistance at 31-32, it could retreat to 26 where it would hit the lower giant wedge line.
Wireless companies, and especially this one, aren't going out of business. Sub growth is definitely stalling, and china growth remains somewhat uncertain.
What qcom has going for it, is a working data product, GSM/GPRS does not. It is too early to tell what the impact of 1X will have on new sub growth, but you can count on a very, very strong replacement market. That is where the GSM vendors are in trouble; there really isn't a reason to upgrade to GPRS for consumers (data doesn't work well and sucks battery life) and carriers (hurts capacity, 1 GPRS user = 3-4 voice users). Where CDMA adds 2-4 times the data speed of GPRS and nearly doubles voice capacity. With CDMA, the carriers are motivated to have users buy new phones.
Both GSM/GPRS and CDMA handset makers will benefit from the appeal of color handsets, again the advantage goes to CDMA because data should help attract better color applications.
Caxton |
