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

To: 16yearcycle who wrote (44533)	10/13/1999 5:21:00 PM
From: puborectalis	Read Replies (2) \| Respond to of 152472

Raging bull comments to ponder...Ronee, this is not news nor is it bad news. This is old news. The market for CDMA is growing at such a fast rate that companies such as Samsung, Mot and Nokia making their own chips makes sense. Qualcomm has licensed these companies to do just such a thing. Yes, it could have the short term net effect of reducing some revenue for Q, however, not margins. Q will still receive royalties for each chip Samsung makes for themselves plus royalties on the phones they sell. Qualcomm's philosophy is that a smaller percentage of a large piece of the pie is better than a larger percentage of a small piece of the pie. Motorola, Nokia and Samsung will all be 2-3 years behind the technology curve with their chipsets. Motorola has had great difficulty producing CDMA chips as has Nokia. Do you think that Samsung will be any different?? By the way, licensing agreements assigned by Qualcomm include the conditions under which the licensee can use the technology. For instance, in the case of Motorola and Nokia, any chips produced by them must be consumed in their own products. In other words, they are not licensed to sell to third parties. I am not sure about Samsung, but I assume they have similar conditions. Qualcomm fully understands that they cannot fully produce the chips necessary for the growth of CDMA.