Qualcomm Incorporated (QCOM) Message Board

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Technology Stocks : Qualcomm Incorporated (QCOM)

QCOM 174.80

+0.3%

3:59 PM EST

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To: Brian Lempel who wrote (6327)	12/12/1997 6:27:00 PM
From: Richard Tuck	Read Replies (1) of 152472

Brian, I agree that the currency devaluation is not going to help royalties, but does anybody think that Samsung et al are going to be able to maintain the same list price in won for very long. If they have all their capital investment and component costs in dollars, then their cost in wons will double. Therefore, they will need to raise the price of their phones in wons and ultimately, QCOM will get near the same level of royalty payment per phone. The only problem is that the demand should decrease because of the higher phone price, but maybe demand is inelastic in the Korean market. It will be interesting to see what effect that this has on Samsung. Will it make them more competitive due the cheaper won, or will this economic crunch strip them of capital for investment. Richard

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