CDMA, Qualcomm, [Hong Kong, Korea, LA] THE MARKET TEST! Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : CDMA, Qualcomm, [Hong Kong, Korea, LA] THE MARKET TEST!

QCOM 174.77

0.0%

9:30 AM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Uncle Mikey who wrote (1214)	11/25/1996 4:07:00 AM
From: Maurice Winn	of 1819

Mike, Here is my attempt at answering your questions, but better answers are needed. 1. How comprehensive is QCOM's grasp of CDMA derived profits? I would imagine that the highest profits would come from handsets or other equipment that QCOM produces itself. But do you have any idea on the relative profitability of license fees or royalties? Will QCOM be more of a competitor with MOT and LU than they are partners? \\Qualcomm has licensed dozens of companies to compete in CDMA. Qualcomm will get only a small portion of the profit from CDMA sales. They are off to a good start on handsets and are getting infrastructure sales, but it will be very competitive. I've never heard of the amount of royalties or how they are calculated. \\Qualcomm will be competing with Motorola and the other licensees. They are not partners really. 2. By "royalties", is it meant that QCOM will receive an ongoing percentage of the sales received by the carriers? \\I can only guess on how the royalties will actually be calculated. 3. What about the evolution of CDMA? What if MOT or LU develop improvements along the way? Would they be MOT or LU's exclusively or would QCOM still have a stake? \\Patents seem to dominate, so if Motorola or Lucent come up with good material, Qualcomm woiuld want to buy a license. The technology seems great, and the potential market is enormous, but it seems to me that a very big part of the challenge for QCOM will be to stay current and continue to get a piece of the pie. Your comments? \\They have been expanding staff numbers at a fast pace! I suppose they are staying current easily enough. It seems that they are going to supply a good share of CDMA equipment. Sorry I only have a few answers. Maurice

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next