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

To: 16yearcycle who wrote (43763)	10/8/1999 12:25:00 PM
From: qdog	Read Replies (1) \| Respond to of 152472

Well, gee, let's go back and review 2G for a moment to answer your question. The stocks that rallied first was the infrastucture makers as you have to build the backbone first. So naturally the leaders of that space is my choice, with an added kicker, they also have to have data networking. That tends to narrow the list to Lucent, Nokia, Nortel and Alcatel. Ericsson has strategic alliances with Cisco in the data networking, which probably means they will do well, but I'm not sure what the cost will be, which will be part of the equation for the operators when selecting a manufacturer. Once the backbones are built, the users will come, depending on what the cost is to use it. Again, looking back at 2G, the handset builders will do well, Nokia and Motorola are the big two. Ericsson didn't do well once the infrastructure was built, although that should not be used as they probably learn a lesson form it. Also component manufacturers will do well, that can produce volume at a fair price. By now you are asking why I haven't mention QCOM. They sold infrastructure and are contemplating selling handsets division. So that leaves them as a component manufacturer. They also have a IPR pipeline as well. So their earnings from 3G won't kick in until the infrastructure is built and the consumer comes flocking to it. The amount of those earnings depends on whether they are going to manufacture for all or some of the other standards and at volume. They will be competing with some heavies in the chip arena. As to specific companies to invest in, do your homework and draw your own conclusion.