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

To: Apollo who wrote (3523)	7/7/1999 3:08:00 PM
From: LLCF	Respond to of 54805

Comments on Clark H's post: <And given that they already have 90% of the ASIC business> Wow, is this correct??? I thought there were others. <PS I am ignoring the 'internal profit' from ASICs and royalties when Qualcomm sells a phone. I suspect that they are somewhat lower than is charges outside companies, but the point of my example was that even if these internal profits are non-existent (i.e. Qualcomm sells ASICs to its handset division at cost) they still probably make more money on a phone than when someone else sells the phone and they just sell the ASIC and collect royalties.> This is a huge point... if ASIC's have > margin than phones [I'm sure its not even close... phone market is brutal] you obviously want to leverage that business. Getting out of low margin phones makes sense... the question is can Q stay with the high end, high margin [new devices & or phones]? Don't get me wrong... I'm not worried about my investment.. IMO Q is a major buy just on future royalties... I'm just trying to acertain the "Gorillaness" of QCOM. Any help? DAK DAK