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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum
GLD 442.03-2.6%4:00 PM EST

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To: elmatador who wrote (48205)4/5/2009 4:34:52 PM
From: Maurice Winn3 Recommendations  Read Replies (1) of 220043
 
ElM, you don't seem to understand that as the cost of hardware such as you install goes down and the competition builds so that arpus head towards $10 a year instead of $1000 a year, and more bytes fit into less spectrum, Qualcomm's profits will increase.

That's because billions of people will zoom around in mobile cyberspace instead of millions and they'll all need to buy Qualcomm ASICs and pay Qualcomm a royalty and use Qualcomm software. They will do that because the total cost of owning and using a cyberphone will be nearer zero than $2000.

In the past, people had to pay $400 to get a phone then $100 a month to use it for a total cost over two years of nearly $3000. Qualcomm got only about $40 of that whole $3000 but had only a little market share of the whole cellphone industry.

Prices are coming down and competition is building. Qualcomm's market share is growing.

The cost to people over two years is falling but Qualcomm's piece is increasing because people are loving cyberphones, aka smartphones, here come netbooks. All powered by Qualcomm.

What is going away is the old-time extorquerationate pricing by telecom monopolists who thought they were entitled to live the high life in the tallest buildings in the best part of town, with fat salaries, bonuses and expense accounts.

Mqurice
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