Skip - I agree that the gross margins are the main bright spot, and Qualcomm management is to be congratulated for that, but all in all ... .
As for I see excellent prospects for continuing improvement in ... asics, ... royalties
Why do you expect continued major improvements in these areas when they did not show them in Q1 vs Q4 even in the face of very good seasonality factors? If they didn't show them then, when will they show them?
As for your other two areas:
1) Infrastructure - As Qualcomm management has themselves said, the big hurt here is from the economy in developing countries. While that is not their fault, it doesn't give me a warm fuzzy.
2) Handsets - They are now probably at effective capacity. They are probably not going to be able to increase capacity significantly without significant changes in their plant and that will take time since, per their last CC, they were not actually working on increasing capacity, and even now they are only thinking about it.
Again, I am not trying to slam management, but I do think that they have some work to do.
Clark
PS I feel a little guilty criticising anybody when I myself could not do anywhere near as good a job, and they have done very very well over the last few years. However, I think someone on this board needs to be a critic. |
