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Technology Stocks : Nokia (NOK) -- Ignore unavailable to you. Want to Upgrade?


To: David Perfette who wrote (3014)12/14/1999 11:56:00 AM
From: Terrapin  Respond to of 34857
 
"Nokia would purchase
the research-and-development portion of Qualcomm's phone division

I'm not seeing anything particularly great about this. Sounds almost like a non event for nok. My understanding is that aside from the main chip that runs it, nok makes a better phone. So what do they have to gain by buying the R&D for manufacturing of Q phones? Seems to me there would need to be more to this deal. Perhaps something that would involve nok buying q's chip and in return getting a break on the royalty fees. Or something to that extent."

Perhaps. But the actual handset manufacturing business is likely a low margin/high volume business. The article was pretty vague about what lies within the "R&D portion". If nothing else if Nokia purchases it then that keeps it away from other companies. I would imagine (hope) that the details of the final deal will include cheaper access to QCOMs CDMA technology and in that light it is in Nokia's better interest to have some of the actual engineers that designed the CDMA phones.

JMHO, please correct me if I've missed something.
Terrapin

PS: Nokia, Motorolla and AOL have signed on to buy up to 4.5% of 3COMS Palm unit once it is IPO'd. Good to see that Nokia is staying on top of the PDA expansion.