You been outside. My air conditioner went upside down today, It's too HOT!!
As to the issue; it's not uncommon to redo production lines this time of year. As per the conference call they had around 1/2 of them converted already and saw no delay as I recall delivering the Q phone to Bell Mobility on time. The beauty of processors and software, you can update it. Jacobs isn't the best at addressing an audience.
Now as to the ability to do these things; they have already prove to be able to do that. Where is MOT and Nokia who were to have their entrants this summer?
Seems they were indicating a July release. Hmmm, could they have some problems? Does that mean QCOM is having problems?
The dual mode phone is naturally (I'm assuming the PCS to cellular model here) is going to be out early fall. The cellular is already dual, analog/CDMA.
As to the operators, that is something out of QCOM's hands. As I said, I've advocated a home cell at PCS (past post) to stimulate sales and add further pressure on cellular. The C block is the real drag on the stock IMO, as it was on ANDW. LU also warned about it in their conference call, but they are a diversified company, but I not sure that it won't be a drag on there earnings in the next Q or two. Projection of earnings were based on C block having at least building out and competing, which isn't happening.
Finally, I think QCOM is engaged in a MSFT/Coke accounting method. They are squirreling away earnings. This serves to purposes, smooth the erratic nature of the stock becasue of seasonal business conditions, 2. to prevent the stock from accelerating too quickly. On this point, I think you are being disappionted as you see DELL and other stock move ahead; unrealistically BTW. MOT hasn't been rising on just cellular news. Ericsson did well this past Q mainly because there buildouts for the US kick in and driven maily by infrastucture. I think analyst treated the stock unfairly and unrealistically. Also I think as usual Ericsson is PRing in a illusionary fashion. All this makes for a drag on the stock. Now you got the new fascination in Nextel, which the street will probably run up to unrealistic value.
In conclusion, my air conditioner is fixed and the production side of things are not that much of a concern to me. I'm more worried about a market that is getting dangerously out of control and setting itself up for a bad fall in the next few months. It use to be run a stock up in anticipation of good earning then selloff on the news. That's not happening anymore. Report better than expected and you get some addtional boost, but that not happening anymore. |
