CDMA, Qualcomm, [Hong Kong, Korea, LA] THE MARKET TEST! Message Board

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Technology Stocks : CDMA, Qualcomm, [Hong Kong, Korea, LA] THE MARKET TEST!

QCOM 175.25

+0.6%

Dec 19 9:30 AM EST

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To: kech who wrote (1503)	1/16/1997 9:50:00 AM
From: J.B.C.	of 1819

We all have to rememember that market penetration is essential here. Not everyone who buy's a PCS is looking for emergency use only, once you're comfortable with the phone you'll use it a little more each time ( oh, a few more minutes of air time isn't going to break me....) Then you find that you just can't live without it! (Remember when you didn't own a microwave, you thought you could do without? I know for myself I can't imagine being without it now, yet I resisted the temptation to initially buy one). Sprint and the other players know this and want to get this thing into your hands. The money to be made is not in selling the phones, it's in the recurring charges that the user incurr month after month. I imagine that the opportunity to buy analog will dissappear in the not two distant future as the cost for the handsets and the CDMA infrastructure come down(or are in place). The communications players are not looking to recover the cost up front, but will depreciate the cost over the long haul. JBC

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