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Technology Stocks : Qualcomm Moderated Thread - please read rules before posting
QCOM 165.03+1.0%Nov 24 3:59 PM EST

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To: jackmore who wrote (41351)6/29/2004 11:06:43 PM
From: Jim Mullens  Read Replies (2) of 196749
 
Jack/ Maurice/ Pyslent/ all: Re: Unicom / GSM1x / Qualcomm MSM6300 pricing, and “At the risk of adding to the confusion, my take was that IJ was really referring to the differential cost between a 1X and a GSM/1X phone. I took his point to be that Q would work to keep that at a minimum, maybe even make no markup on the GSM part of the chip so as to make the phones as affordable as possible.”

Sorry, my recall is entirely different.

This was my exact question to Dr. IMJ at the 2003 Annual Meeting-

“Will Qualcomm be pricing the MSM6300 so as to allow handset manufactures to aggressively market this dual mode phone and price it competitively with a GSM/GPRS single mode phone with comparable features?”

There was no ambiguity as to GSM1x vs CDMA1x or GSM/GPRS, the comparison was to “a GSM/GPRS single mode phone with comparable features”.

And, Dr. IMJ’s answer was clearly yes, the Q would price the MSM6300 competitively.

Some further statements by Dr. IMJ

To:Ruffian who wrote (132373)
From: Hepps

Wednesday, Dec 10, 2003 4:51 AM
Respond to of 132374

Snips>>>>>>>>>>>>
Jacobs agrees.
.
"It doesn't add much cost to the phone at all because the digital part is mostly done in the digital signal processing," he said. "You need a little more memory in the phone to handle the GSM/GPRS technology. The size will be the same, basically. Battery life? No difference, because you're either using one or the other, not both simultaneously."
.
He added: "Radio frequencies are a little bit more complicated, but now we are providing multiband technology. And we built a chip that has the right bandwidth for GSM/GPRS, as well as W-CDMA, as well as CDMA2000. It's not a dream by any means. The phone manufacturers initially will probably get a significant premium. But very quickly I think it's going to be a very small cost add-on."

The phone manufacturers initially will probably get a significant premium. But very quickly I think it's going to be a very small cost add-on." <<<<<<<<<<<<<<<<<<

Pys, Re: “Having only 1/3 of those 25M moving to GSM1x would represent over 8M...
True, but if Slacker's article is to be believed, those 8M subs will have to share the 500,000 handsets that CHU has ordered <ggg>.”<<<

Ggg- Don’t you imagine the 500k was probably the initial order? In any event, the theme of the original article (and another the same day) that got this discussion started was Unicom’s -

1. expansion of their CDMA network, and

2. to attract GSM users to the CDMA network.

To that end, it’s my understanding that Unicom’s CAPEX focus over the past year or so has primarily been directed toward the CDMA network. It would appear then that Unicom is very serious about GSM1x handsets and a 78 Million GSM replacement / upgrade market represents a great first step in cracking the GSM market considering that the largest CDMA carrier is less than half that size.
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