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Technology Stocks : Qualcomm Moderated Thread - please read rules before posting

QCOM 172.72

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To: slacker711 who wrote (45214)	3/28/2005 1:46:06 AM
From: Maurice Winn	Read Replies (1) of 196442

Slacko, I suppose GSM ASICs are produced by the GSM Guild and they have competed away margins so non-guild members aren't in a position to produce them and charge 16% [or more] royalties. QUALCOMM is not in as good a position as Nokia, for example, to produce a GSM/GPRS ASIC, so a prospective buyer of a QUALCOMM GSM ASIC would find QUALCOMM uncompetitive with Nokia. QUALCOMM would presumably have figured that out and wouldn't have bothered allocating any money to producing a GSM-only ASIC to prove that they couldn't compete. Combined CDMA/GSM/GPRS is another kettle of [hag]fish and QUALCOMM has the economies of scale and Nokia doesn't [adjusted for technological ability in the CDMA department]. If Sendo etc want GSM-only, they'll buy from the GSM Guild. If they want CDMA2000 included, they'll buy from QUALCOMM. In W-CDMA, QUALCOMM is in the early stages of gaining market share and they want very much to gain market share and have allocated big-deal resources to doing so. I think that makes sense, is logical, and fits the facts. Mqurice

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