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Technology Stocks : Qualcomm Moderated Thread - please read rules before posting
QCOM 159.42-1.2%Jan 16 3:59 PM EST
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To: waitwatchwander who wrote (102251)5/26/2011 5:47:41 AM
From: DanD6 Recommendations  Read Replies (2) of 197281
 
That revenues deceleration also occurred in the largest period of GDP contraction the world has seen since the Great Depression.

The upturn coincides with the end (in economic terms) of that recession.

Tells me that management has believed all along in the future of 3G and 4G, and Qualcomm's ability to have significant returns in that future in continuing R&D investment.

Is Qualcomm the GE of wireless? Not yet.

In 2005-2010 many folks ridiculed that aspiration ad naseum and claimed R&D should be pared back and Qualcomm should concentrate on extracting value from CDMA and that's it.

But management continued to innovate, cancelling UMB and other ventures, but continuing to put themselves out there. There is no way that Snapdragon can be considered part of their core competency anymore than TV broadcasting was.

Both were risky. Both were products of R&D. One is dead, but Snapdragon still has the potential and trajectory to make up for all or any poor investments of the past.

Wireless is going to expand in the coming years to ubiquitous always-on processing and connectivity. Snapdragon gives Q a bigger piece of that pie. The overall economy and the quality of Q's execution will determine just how much of that piece. (Not to mention the quality of their competitors.)

Today, Qualcomm still has a chance to be the GE of wireless. I personally believe cutting back on R&D in 2005-2010 would have made that statement untrue.

Excelsior!

Dan D.
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