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Technology Stocks : Samsung and Wireless

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To: Eric L who wrote (44)4/9/2002 3:10:04 PM
From: Eric L  Read Replies (1) of 374
 
re: Samsung NEXiO (MSM5100) recall

>> Qualcomm's Chipsets Trouble Manufacturers

Kim Deok-hyun
Korea Times
04/09/2002

After Samsung Electronics decided to recall wireless handheld PCs due to an error detected in the U.S. technology firm Qualcomm's mobile chipset, domestic mobile phone makers have become concerned over similar possible damage.

Last week, Samsung Electronics issued a statement that it has taken sole responsibility surrounding a recall of its handheld PC NEXiO models, citing a glitch in its communications module.

The NEXiO model, manufactured incorporating Qualcomm's Mobile Station Modem (MSM) 5100 chipset, showed problems with high-speed Internet connections.

On its April 4 press release, Qualcomm officially admitted an error in two of its mobile chipsets, which could have occurred in a small quantity of initial shipments of the CDMA2000 1X chipsets, and could impair the performance of wireless devices using those chipsets.

``The error was detected immediately and corrected. Customers were immediately notified and Qualcomm is now shipping large production volumes of the MSM5100 and MSM5105 to customers worldwide,'' the statement said.

The two chipsets have been used in the Korean manufacturers' latest mobile phones, which are based on CDMA2000 1X technology.

The code division multiple access (CDMA) technology first became operational in the early 1990s, with Qualcomm retaining an original patent.

Though it was not reported how many mobile phones were affected by the chipset woes, domestic mobile phone makers are likely to cope with any potential problems with the chipsets.

LG Electronics, the second largest mobile phone maker in the country, has already exported some 700,000 wireless phones, equipped with Qualcomm's MSM5105 chipset, to the U.S. mobile carrier Sprint.

SK Teletech, the mobile phone manufacturing arm of SK Telecom, is also nervous about the glitch, as the company is scheduled to release soon for sale phones utilizing Qualcomm's MSM5100 chipset.

Samsung Electronics is also undertaking trials before introducing the 1X mobile phones with a MSM5100 chipset late this year.

``So far, any damage arising from the malfunction of any of the MSM 5105 or MSM 5100 chipsets is expected to be far less than originally feared,'' said an official at LG Electronics, who asked not to be identified.

Qualcomm's Korean unit said the error has been corrected in cooperation with Korean manufacturers, confirming there will be no problems for those phones already produced. <<

- Eric -
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