Hang on Taichi, I agree with Tero on this one. QUALCOMM will surely make vastly great riches from royalties. But this is irrelevant to what Tero was saying about the handset business.
The handset business has nothing to do with the royalties business. People have said that the royalties give QUALCOMM a built in price advantage as though the royalties can be used to subsidize an inefficient handset operation.
I disagree. Very much so at that! This is not the same as Omnitracs subsidizing cdmaOne development. Well, in the initial stages it is, but after the handset business is on its feet, I don't want to see money pumped over the fence from royalties simply to enable handset discounts to enable price competition with large scale handset makers.
Tero has a point in that it is entirely possible that the QUALCOMM handset business will be unable to compete with the licensees. But we need not throw in the towel simply because there is competition. First, we try to succeed and there is every indication that QUALCOMM is succeeding in handsets. Poor connectors, cracking plastic, faulty belt clips and dual mode Q delays notwithstanding.
If The Q! handset market share drops to 5%, we might look at packing it in. But not when they are doing so well.
When the MSM3000 starts hitting the phone shops, with Sprint's dime a minute anytime, anywhere, in the USA, Tero's GSM sales in the USA are going to look sad.
Hey Tero, how are Nokia's cdmaOne handset sales going?
Mqurice
[Don't forget - $80 by 30 November]
***Off topic***
And look - Dubai traded oil down to $10.70 per barrel. Iraq has outbluffed the USA again. I wouldn't be a foreigner in Iraq now for anything. I wouldn't be surprised if he rounded up all the UN people and held them as hostages or simply murdered them one by one from a couple of hundred feet away, blaming it on unknown military naughty people. Or he might simply totally comply with inspection and flood the world with oil with a huge drop in crude price resulting.
How about a UN invasion, funded from oil sales once the fields are confiscated and buy off any Iraqi military who agree to take up a position in the UN security force preparatory to establishing a democratic system, again, funded by oil sales from Iraq.
I bet Iraqis would like it [other than Uday, Saddam and other nightmare makers]. So would USA and other oil consumers. Of course the British [with North Sea income], Russia [with huge petro reserves] and USA oil industry with expensive oil fields, would hate it! So there would be a lot of political opposition. I think the West prefers sanctions to a real solution.
Just set up a beach-head in Kuwait and start moving west day by day. There isn't anything Saddam could do about it. |
