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Technology Stocks : Qualcomm Incorporated (QCOM)
QCOM 157.80+0.9%3:59 PM EST
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To: Ramsey Su who wrote (12501)7/16/1998 11:51:00 PM
From: Joe NYC  Read Replies (2) of 152472
 
Ramsey,

Something Strange about Nextel Report. How can a reasonably mature company report a quarterly loss higher than the total quarterly revenue, sales only a fraction of QCOM's sales, and Market Cap almost twice that of QCOM?

Oh well. You are right, they know about marketing. 400K new subs is impressive. Especially if you consider that they are selling half duplex walkie-talkie with questionable sound quality, and they are not selling them cheaply either (but still subsidized heavily). The per minute charges are I believe in 12c range.

One good thing to consider when deciding whom you want to sell your product to, is to consider how much the potential customer is willing to spend. Nextel goes after the business user. It is not a big deal for a company to spend $69 per month if the device is going to make the employee more productive.

In the meantime, Bell Atlantic and Sprint are resorting to luring teenagers with sub $20 per month offers. Why not go where the money is first, pay off expensive infrastructure, and then sell to teenagers with free evening/weekend offers.

Every new sub for Nextel is a lucrative opportunity lost for CDMA camp.

Of course Sprint and Bell Atlantic would argue that it is a higher priority for them to first build out and improve coverage before delivering custom services. I don't agree with that. I think they should do both.

If Nextel can raise money with credit-worthiness probably somewhere in the neighborhood of Iraq and Russia, why should it be a problem for Bell Atlantic to raise the money?

Joe
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