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Technology Stocks : Qualcomm Incorporated (QCOM) -- Ignore unavailable to you. Want to Upgrade?

To: Jim Willie CB who wrote (33112)	6/24/1999 6:22:00 PM
From: Clarksterh	Read Replies (2) \| Respond to of 152472

Jim - with sold handset division, more investment can easily stream into high margin businesses... Tell that to Dell. What counts is ROA, not margin, and it is a reasonable possibility that ROA for handsets, which are such big revenue generators, is as good as for ASIC's. (e.g. how much R&D goes into ASICs and how much into phones vs their comparable gross margins?) If they choose to sell their handset division I would want to know the reason given that they sell all they can make, and the margins keep rising. (Note that there are other reasons to sell, such as to lock up the ASIC business, but in that case I'd want some pretty serious evidence that their handset business was impacting their ASIC sales. With 90% of the market that is far from obvious.) expansion of mfg capacity is essential... The only major mfg capacity that they have is subscriber units. Getting rid of the infrastucture losses does indeed make the company worth more in my eyes, but I have seen no evidence that the handset area is hurting the company overall. It is a complete mystery why everyone thinks the handset business is a drag on the company given that there has been no evidence of that. Clark