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Technology Stocks : Qualcomm Moderated Thread - please read rules before posting
QCOM 151.59-0.4%Jan 30 9:30 AM EST

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To: slacker711 who wrote (68080)8/21/2007 5:21:16 PM
From: Art Bechhoefer  Read Replies (1) of 197451
 
"very minor" is the total number of handsets with WCDMA capability sold by Nokia so far as a percentage of total number of handsets sold by Nokia. I don't have the latest figures, though I've seen estimates from market research groups. Is it even 10 percent (up to the quarter ending June 30)? How many GSM capable handsets sold in Europe, North and South America, Asia, and Africa also are WCDMA capable, and what is the percentage of the total sales? And what is the breakdown for Nokia?

Even QUALCOMM has estimated lost royalties from Nokia not paying is relatively small, so far. But as more handsets are sold for WCDMA, OFDMA, and possibly WiMAX capability, the number using QCOM IPR is increasing dramatically.

Furthermore, the number of CDMA2000 capable handsets being sold by Nokia as a percentage of total sales is going down because Nokia has admitted it is no longer participating in this market with its own chips. This INCREASES the relative importance of Nokia handsets with WCDMA capability going forward.

Let me put this whole argument another way, though I know it has been stated many times before: Nokia can't sell its own WCDMA handset today without using QUALCOMM IPR. They're going to get the chips either from TI, Samsung (unlikely), Broadcom (later on, possibly), or some other fabricator, but whatever they use for a WCDMA chip will contain QCOM IPR.

They can pay QCOM now or pay them later (with interest). Or they can let a competitor take market share. And finally, Nokia, through its PR statements, knows very well the importance of WCDMA to its own future.

Art
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