I don't believe they ever said they aren't losing mktshare in the phone biz, they said thay can grow their biz and lose maktshare simultaneously because the mkt is expanding. I also think it's only reasonable to count as mktshare all those phones that say "Dig by Q" on them, in other words QCOM branded phones plus those selling phones with Q ASICS in them. This is a much harder number to put together. The mkt is still very much up for grabs IMO and we'll have to wait to see what happens..
We'll see if margins erode. I'll wait to see it before I say that I see it happening.
QCOM has been an innovator, something I think is impossible to deny. pdQ is an experiment IMO, we'll see how it goes. Globalstar will be Q's high end mkt IMO.
I will be alarmed if the losses aka charges continue. The mkt has bid up the price on the presumption that they'll not. We're clearly in the sweetspot for IS95 expansion with JApan, Brazil, Mexico, etc coming "on-line". This will cover Q for another year at least, in addition to the mrgin improvements from infra sale. By 2001 we're going to see a new landscape, new wireless products with very high data rates. CDMA will take a hefty chunk of these devices.Don't discount those royalties. WHen Nokia or MOT sells a CDMA product "we" get paid first, before shareholders in Nok or Mot..As margins decline the way they have in the PC model, our position might seem enviable..
Dave |
