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Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: LindyBill who wrote (2675)	6/16/1999 4:52:00 PM
From: mauser96	Respond to of 54805

It's always especially nice to hear from someone who is actually using this stuff that most of us have to learn about second or third hand. The comment about varying performance among different providers of CDMA indicates that there is room to innovate inside the standards. I thought his comment about Nokia may have been off base because Nokia has shown it's willingness to work with any standard. One advantage that Nokia has is economy of scale -it's sales are 3 times that of QCOM. However, the new QCOM products are very attractive so perhaps they can start to close this gap. Jack Welch of GE always says never buy or keep a company unless it's #1 or #2 in the field. In cell phones NOK is #1 and MOT #2. MOT is notorious for poor execution so maybe the lead in CDMA will enable QCOM to catch Motorola. Now that the CDMA battle has been won, QCOM can devote more effort to improving it's cell phone business. I just talked to my broker, and he brought up the subject that Nokia will be making it's own ASIC CDMA chips and that this will hurt QCOM income, since even if they have to pay royalties (not sure about this) the profit margin on the chips is higher. I haven't had time to evaluate this, just passing it on. Even though QCOM is my only cellular holding, I'm always looking for any negative information to temper the optimism inherent in ownership.