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Technology Stocks : The New Qualcomm - a S&P500 company -- Ignore unavailable to you. Want to Upgrade?

To: mmeggs who wrote (1197)	9/1/1999 4:49:00 PM
From: slacker711	Respond to of 13582

Thread question: Has anyone been able to discern whether margins are truly "being pinched" or rather that they are just not expanding as rapidly as management hopes/hoped. I would think that since their have been reports of shortages of CDMA cellphones that the ASP's for the Q are probably holding steady. The problem is most likely with the expense side of the equation. I have two related thoughts.... 1) Component manufacturers are taking advantage of the parts shortage to charge more. Anyone know if contracts for components are long-term or just based on some sort of spot pricing? 2) The Q was expecting to be able to ramp upto 1m phones per month. If the parts shortage prevented this, they would have excess people, manufacturing space, and some components (those not in short supply). All of these things would lead to a contraction in margins. Slacker