SiRF Technology Holdings, Inc (SIRF) Message Board

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Technology Stocks : SiRF Technology Holdings, Inc (SIRF)

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From: tech101	1/24/2007 2:55:57 PM
	of 132

Price Drop Is Good to Corning as to SIRF/NVT. Corning today posted a better-than-expected quarterly profit and GLW jumped more than 10% to 21. That is a shock to shorts since GLW had a recent haircut to as low as 17.50 thanks to the worry about LCD TV price drops. SiRF to GPS is like Corning to LCD TV and even more favorably because 1. A SiRF Star III chip is only 30-90th of the GPS price while a Corning LCD glass panel costs about 1/10 of the LCD TV price. 2. SiRF has 80-90% of the market share while Corning has only about 45% of the LCD glass panel market share. When a large LCD TV price dropped to 1/3 from $6000 to $2000, Corning’s profit jumped 10+ times because of the large volume of LCD glass panels they sold. So the pressure is on Garmin, Tomtom, Magellan, … not on SiRF - the chip supplier and NVT - the map data supplier. The only problem is that we need to see GPS price goes from the current $400-900 to $70-100 for SiRF to get windfall profit similar to Gorning. The same reasoning applies to NVT – the dominating GPS map data supplier-monopoly. I am anxiously waiting for the 2006Q4 result that SiRF and NVT will announce next Tuesday and Feb. 8 respectively.

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