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Technology Stocks : VLSI Technology - Waiting for good news from NASDAQ !!!
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To: Sonki who wrote (4949)12/10/1998 2:09:00 PM
From: Mark Brophy  Read Replies (1) of 6565
 
Is this bad news?

From Ericcson's PR:

''In Mobile phones our operating income during the last months of the year is negatively affected by the shift in demand towards entry-level phones with reduced margins. These phones are demanded for the rapidly growing pre-paid services which now account for one third of the market in Western Europe. In spite of a strong increase in volumes we have not been able to compensate for this development in our operating income.''

''We continue to see strong growth in mobile systems where we have a world-leading position. This is an area where demand remains largely unaffected and where we have a very strong income.''

Sounds like bad news for Ericcson and good news for VLSI, unless the price pressures also extend to chips.
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