Qualcomm Incorporated (QCOM) Message Board

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Technology Stocks : Qualcomm Incorporated (QCOM)

QCOM 176.51

-1.5%

3:50 PM EST

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To: GO*QCOM who wrote (17560)	11/2/1998 8:10:00 PM
From: SKIP PAUL	Read Replies (1) of 152472

It is not that I dislike the handset business. For QCOM it does represent a lot of earnings leverage by an improvement in margins from current low single digit levels to the high single digit levels. The business is also scalable with potentially millions of units to be sold. Having said that, the handset business is essentially a very competitive, risky and relatively low margin business which already has some very good players. I am sure a company with the intellectual capacity of QCOM can find better ways to invest the large capital investment required to manufacture handsets. PDQ is a good example of that where I presume QCOM software/firmware will be QCOM's primary contribution along with attachments to an existing platform and product. The margins on the PDQ could be in the high teens.IMHO.

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