Slacker, re:
“With good general market conditions and if QCOM’s PE was at Fy03’s level (44%) we could be looking at …..
>>>>>
Unfortunately, it doesnt make sense to ever have that kind of PE again. That was pricing in the future growth of the WCDMA market...the bulk of which is now behind us.”
I also doubt we’ll see QCOM with a 44PE again, but I’ve learned one can be surprised when using “always” and “never ever”.
Re: >” the future growth of the WCDMA market...the bulk of which is now behind us.”
I doubt the GSA would agree with you on the above, with these stats from their April 09 download.
Total World Mobile Subs……….3,933 million
GSM/WCDMA………………….3,540
WCDMA…………………………..287 ………………..7% of tot
Some are even projecting 5 billion subs is not out of the question within the next several years.
Others are saying with the proliferation of converged devices with 3G connections – netbooks, MIDs, PND’s, mobile TV’s, medical monitoring devices, etc, etc----- penetration rates will significantly increase with many folks having several 3G connected devices.
Also, WCDMA handset sales represented only ~ 20% of the world market last year, so I’d say the “bulk” of future WCDMA/ LTE / 4G handset growth is still in front of us.
But, I agree that QCOM’s future growth rate is tempered in comparison to what it was 5 years ago due to several things ( prospects of lower royalty rates, law of large numbers, questionable economic & market conditions / --- individual & corp tax policies / regulations/ investor concerns, etc >>> limiting GDP & market returns. |
