I understand you are comparing QCOM and LXK, but your understanding of LXK is, in my opinion, pretty inaccurate. For example:
The main difference is that demand for cell phones worldwide is growing at roughly three to four times the demand for the products made by Lexmark.
Worldwide cell phone units are growing at about 10% per year in 2003, and with price declines cell phone revenues are growing about 5% per year. That's identical, if not below, printer/ink and LXK revenue growth.
Digital cameras, color, all in one scanner/printer/fax devices and increased usage are all driving print and ink growth, and these are relatively NEW phenomena likely to continue for the next 3-6 years, whereas I think most forecasts would be hard put to have cell phones continuing their 10% unit growth forecast for 2003 beyond the next 3-4 years.
Where in the world do you get cell phones (MOT, NOK, Samsung, LG, Sony-Ericson) units or revenues (not sure which you mean) growing 3-4x faster than LXK of HPQ printing/imaging division revenues? Or, what do you think cell phone revenue growth rate is and what do you think printing/ink revenue growth rate is?
No offense, I just don't think you know LXK as well as you do QCOM, that's all.
Elroy |
