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Technology Stocks : Qualcomm Incorporated (QCOM)
QCOM 163.32+2.3%Nov 21 9:30 AM EST
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To: Dave who wrote (18188)11/11/1998 9:38:00 AM
From: Clarksterh  Read Replies (1) of 152472
 
Dave - Your price points may be a tad bit old. I saw an advertisement that would give a prospective consumer a free StarTac after the $50 rebate.

Thanks for the info, but I'm trying to compare list prices which should have some correlation to manufacturer cost. Somewhat obviously a free Startac is subsidized.

It is important to compare apples to apples. One service provider may offer the phone for $500 and a cheap/short contract while another with the same phone may offer it for free but with a 2 year expensive contract. If one service provider is offering a free Startac with a 2 year $100/mo contract and another service provider is offering a $500 Q phone with a 6 month $20/mo contract, then how do I know which phone is really more costly?

Some might argue it doesn't matter since the prices depend so much on the service contracts, but again, somewhat obviously, this is false. Assume that the Q is 1/2 the cost (to the service provider) of the Startac. Then it is obvious that if the service provider wants to give both away, he has to require a longer, more expensive contract with the free Startac. The price point has mutated enough to make it difficult for us to do a comparison, but there is still a significant price point difference and the Q will sell to a different crowd than the Startac.

Clark
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