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

To: waverider who wrote (39405)	9/1/1999 8:24:00 PM
From: quidditch	Respond to of 152472

Rick, good post. Some additional observations: -- in the July CC, management noted that Sulpizio was speaking from Japan where he was dealing with component vendors, among other matters. You don't have your CFO in Japan talking to your key suppliers if there aren't serious cost/timing issues that management is trying to work out. Management said component shortages would be a problem into Q4 and perhaps further out and could hurt margins. No punches pulled here. -- in the July CC, management responded that ASP erosion was "pretty much within budget" (words to that effect), at what I recall was approx. 10% quarterly (could be wrong on the percentage). ASP erosion applied to handsets and ASICs. The only possible new (read: more negative) information is that ASP declines have accelerated. This could be due to a number of factors, including: --the wireless operators gearing up to push more calling plans and thus handsets out the door in Q4 for their year-end revenue numbers, and pushing heavily for discounts; most wireless operators have announced new handset orders; wireless has to make up for falling long distance margins; --as noted by Rick, price competition pressure from MOT and NOK; --as new 2.5G phone models are ramped up (e.g., Thin), steeper discounting of older ISM-95 phones; --Run-up on Tuesday, I thought, was due to announcement that analysts meeting to be held in NYC, rather than S.D., bullish from the parochial analysts perspective, thinking that positive big news to be unveiled on Broadway. This could still happen. But I also think that Skip was correct in terms of managing expectations giving the operating issues that Q is dealing with right now. So the "negative" short-term news could be balanced by something else..... --Q sitting on approx. $1.5billion. In its position, management has to be thinking strategically of its moves to further leverage its position in the industry...; --China: agree with Rick: anyone reading this thread knew that Unicom, bombing (see Mq), embarassment of Zhu by Slick were going to retard if not scotch rapid CDMA rollout; -- Everen Securities, as noted, has been a consistent, if conservative, supporter of Q and this may reflect its (typical Midwestern <gg>) conservatism. Regards. Steven