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

To: MileHigh who wrote (39779)	9/5/1999 2:51:00 AM
From: puzzlecraft	Read Replies (2) \| Respond to of 152472

What do you mean by saying that the handset division puts a drag on EPS? If Q sells the handset division, then there are LESS total earnings and LESS total sales. The remaining margins will be higher but the totals will be LESS. Therefore the price to sales and price to earnings ratios will be even higher than they are now. Isn't the handset division expanding rapidly? Aren't the new Q thinphones and higher priced PDQ's expected to do well? Q will have more cash, but what could they do with it that would be better than what they are doing now with the handset division? There are other less tangible benefits to having a handset division. Q has a direct line to the public which forces the Q to make sure that the CDMA handset logic works correctly: a massive feedback mechanism from the public. Q loses the feedback and idea incubator mechanisms if they sell the division. Q loses the very thing that the public identifies with the Qualcomm name. John

To: MileHigh who wrote (39779)	9/5/1999 11:20:00 AM
From: Bux	Read Replies (2) \| Respond to of 152472

RE the sale of the Handset division, do you see this as coming to fruition someday? Is it a foregone conclusion or just a pipe dream? IMHO, I have never viewed the Q's primary business as a phone manufacturer (but lots of news stories characterize the Q as such). Having said that, phone manufacturing is very important to help CDMA spread rapidly. Competition lowers prices and increases quality and features. We do not want the adoption of CDMA to be slowed by a shortage of phones. A sale at this point would slow the production growth of CDMA phones. When phones become commodities, the Q will exit the business. By then, CDMA royalties will be huge and Q's other developments will be growing new royalty streams. Q shareholders have a lot to look forward to. Each time GSM/TDMA/Analog networks proudly announce CDMA upgrades, share price will spike. Market timers will miss most of the gains. Bux