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

To: Kayaker who wrote (44739)	10/14/1999 3:22:00 PM
From: John Hayman	Read Replies (1) \| Respond to of 152472

Bob, The reply I received from the Fools!! John, I agree -- this will be fun to watch. Although I'm not so sure that ramifications that the Intel - DSP deal will have on Qualcomm in the future are so cut-and-dried. Typically, Intel tries to standardize its technology platforms, along the lines of what it did with x86 chips back in the 1980s. That's how I've often interpreted the company's strategic technology moves in the past, anyhow. Maybe they're up to something else with the DSP deal. But based on the way management out there normally thinks, they must see some kind of potential. Surely, Intel figures that they can make money in this market with the way CDMA is growing right now, even if they are paying royalties to Qualcomm. In the end, Intel's ability to come up with a steady stream of design wins with PC chipsets could be leveraged into design wins for cdmaOne chipsets, too. That alone could be enough to hurt Qualcomm. Most of the scuttlebutt I've heard puts the Qualcomm royalties paid by DSP between 3% and 5% per chipset. That's nice, but it's peanuts compared to the 60% margins Qualcomm can command from its own chipsets. Just thinking out loud. We'll see how it all shakes out. Brian Graney