Duane, Duane, DuaneDuaneDuane, what am I gonna do with you? Buggy whips aren't my thing... making money is my thing... ergo, a bit of historical perspective... I only went back 1 year, because it only tilts even more in my favor if I go farther back...
techstocks.com
Yes indeed... GSM has a large installed base, and it's growing every day... each of those users will, in time, replace or upgrade their phones. The more features a new phone has, the more likely subscribers are to upgrade/replace with that new phone. Theoretically, if LSI provides a GSM chip that can call and make reservations at your favorite restaurant for you, or let you call multiple people at the same time, or respond to voice commands, or something else that knocks the socks off of Joe and Jane consumer, then it should be able to demand a premium for those capabilities (Just look at sales of Nokia's 9000 in Europe as a decent example...).
Yes, CDMA is growing (we'll ignore Korea for the moment...), I've never argued otherwise. I'd also like to point out that telecom is in no way, shape, or form a zero-sum game. It is a market that is growing exponentially, and the dreaded day of commodity-like sales of cellular handsets still hasn't arrived (contrary to numerous dire predictions). I'd be willing to bet you would say that "not all CDMA chipsets are alike" (MOT vs. QCOM for instance), so I can't understand why you'd think that rationale would work for an LSI/GSM chipset. Profit margins are driven by not only supply but demand, and if your whizbang LSI/GSM chipset runs rings around the other guys, then the world will beat a path to your door.
DWB |
