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Technology Stocks : Qualcomm Incorporated (QCOM)
QCOM 164.21-0.5%12:30 PM EST
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To: Maurice Winn who wrote (17200)10/26/1998 4:53:00 PM
From: Bon Scott  Read Replies (2) of 152472
 
Profit is the name of the game and for all we know, the terms of the contract were poor. Companies do sell things too cheaply at times. So far, QUALCOMM has not shown any inclination towards doing that, though they are heading in that direction with the underpriced Globalstar handsets. But competitive pressure can lead people to accept excessively low prices. So we don't have the full story yet.
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Maurice, I have to disagree with your theory above when applied to US West.

Favorable terms of a contract ($$) would hardly be a reason for a company like US West to choose QCOM over others such as LU or MOT. US West would stand to lose a lot more $$ than that in revenue if the base stations were unreliable or had poor voice quality. I would believe that favorable terms would be lower on the criteria list when purchasing hardware.

There would have to have been some kind of clear advantage (reliability, voice quality, size, $/channel...etc.) for US West to have chosen QCOM.

However, you theory hold a lot of water if we were talking about a developing nation that just starting basic cellular phone coverage and is leap-frogging straight to digital cellular.
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