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

To: MileHigh who wrote (40932)	9/14/1999 11:53:00 AM
From: mthomas	Read Replies (3) \| Respond to of 152472

A post to me by G.Moore on this thread pointed out that the added cash into the kitty by way of improved market cap due to improved ROI due to distance from manufacturing the handsets (capital intensive very low ROI) could be very advantageous if the bigger kitty were put to work on the core technology which is very high ROI, thus again improving market cap...........

To: MileHigh who wrote (40932)	9/14/1999 12:19:00 PM
From: gdichaz	Read Replies (3) \| Respond to of 152472

Mile High: I assume that the reference to "one of the most revered posters re Q advocated not selling the handset division" is not a reference to me but to Gregg Powers who fits that description while I certainly do not. :-) However, since I did stick my neck out and argue strongly against the sale repeat sale of the handset division, I suggest that such a sale may not be in the cards - although such a sale may happen. Therefore, for fun, and to stick my neck out again, here is a post I just sent to our great and good friend Tero on the Nokia thread on this subject: Talk : Communications : Nokia (NOK) To: tero kuittinen (2143 ) From: gdichaz Tuesday, Sep 14 1999 12:01PM ET Reply # of 2147 Tero: As the lawyers say, the jury is still out. If you will notice there was not a word about "selling" the handset division in the press release. And the Q is usually very careful about language. We will probably know more tomorrow due to the NY meeting. In the meantime, I see the language to cover: Selling nothing at all, but contracting out to someone like Solectron to actually "manufacture" the phones Following the ASIC model where the design and control is firmly and completely with the Q but IBM and Intel are the "foundries" that actually turn out the chips themselves for the Q to test for quality and then for the Q to sell with its name on them. A joint venture or some sort of "partnership" with Siemens or another major European company to produce Q phones with the design and control firmly in the hands of the Q. Outright sale of the "handset division" to another company - probably European. We should know tomorrow which of these alternative is chosen by the Q's management. My guess is that the list I just made is in the order of probability, with outright sale the least likely. Contracting with a "contract manufacturer" is my best guess. The ASIC model would be my preference but where do you find a company similar to IBM or Intel to undertake the "foundry" role? Would Nokia do it? Watching with considerable interest. Best. Chaz