William Re: S&P –
Sadly, S&P’s Leon hasn’t much of a clue. MOT’s problems are due to not having viable / competitive WCDMA devices (especially low-end) for which it has turned to QCOM for chipset solutions as its Freescale’s 2 year obligation expires. Leon should have know that MOT plans on utilizing **WCDMA** chipsets from QCOM which represents a promising **new** market for Qualcomm, and not the existing CDMA market as he states >>> “QCOM plans on expanding its CDMA chip orders “
Also, NOK is still a QCOM customer, although NOK states it will no longer write a royalty check to QCOM while admittingly using QCOM IPR and subjecting itself to IPR violations and associated damages.
Snip>>>>
“While Samsung, QCOM's largest customer, reported a strong Mar-Q for handset shipments, we are concerned with Motorola's weaker handset outlook (MOT 18.3****), as QCOM plans on expanding its CDMA chip orders. Also, absent Nokia (NOK 23.9***) as a customer with the termination of their license agreement, QCOM's growth may slow.
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QCOM will report Mar-Q results nextWednesday after the market close.We see revenues of $2.1B and EPS of $0.42, after $0.05 in stock option expense. While Samsung, QCOM's largest customer, reported a strong Mar-Q for handset shipments, we are concerned with Motorola's weaker handset outlook (MOT 18.3****), as QCOM plans on expanding its CDMA chip orders. Also, absent Nokia (NOK 23.9***) as a customer with the termination of their license agreement, QCOM's growth may slow. |
