Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : The New Qualcomm - a S&P500 company -- Ignore unavailable to you. Want to Upgrade?

To: Webster who wrote (4438)	12/22/1999 5:51:00 PM
From: cfoe	Read Replies (2) \| Respond to of 13582

Excellent analysis! Thank you.

To: Webster who wrote (4438)	12/22/1999 6:00:00 PM
From: John Biddle	Read Replies (1) \| Respond to of 13582

A new manufacturer for North America. Kyocera expects to make 50 million phones next year world wide. Where did you get this? The only reference I found was in a PR Newswire story quoted here: 127.0.0.1:3456/SI/~wsapi/investor/reply-12364057 With the newly acquired business and its existing manufacturing operations, Kyocera estimates that it will produce approximately 16 million wireless handsets, including CDMA, in the fiscal year ending March 31, 2001 - essentially doubling its cumulative shipments to date.

To: Webster who wrote (4438)	12/22/1999 7:22:00 PM
From: lkj	Read Replies (1) \| Respond to of 13582

Webster, Agree with you totally. Kyocera is a world class phone manufacture. Nokia and Mot have been trying to go after the Japanese market for years, but could make a dent. And Kyocera is considered one of the best phone manufactures in Japan. Imagine what the US phone market will be like, when Kyocera phones hit the US. In addition, NTT is doing 3G. Kyocera will show its CDMA leadership there. I think this is a GREAT deal for Qualcomm. The benefits are not as apparent as signing up Nokia or Mot, but with huge CDMA growth in Asia in the next few years, lining up Kyocera is a very smart move. It also locks Intel out of any big deal with Kyocera, killing two birds with one stone. This is another demonstration of the management's brilliance. Regards, Khan

To: Webster who wrote (4438)	12/22/1999 7:46:00 PM
From: slacker711	Read Replies (4) \| Respond to of 13582

Ok someone explain to me objectively what Qualcomm got out of this deal...Here's my concerns: 1) Kyocera already uses Qualcomm's chips. Yes, they have an older line-up of phones that had used DSP chipsets but the most recent models (IS-95B) used the MSM's. Qualcomm did not gain a customer (same concern that I had if Ericsson bought the division). 2) Kyocera seems to be a world-class manufacturer.....but so was Sony. Hypothetically, if Sony had continued in the QPE relationship, would we be better off? Who would you rather have as a partner....Sony or Kyocera? 3) Kyocera was already intimately tied to CDMA. You could make an argument that no handset manufacturer, with the exception of Samsung, had a greater stake in the success of CDMA than Kyocera.....they own over 20% of the new DDI. 4) Nokia owns 30% of the Chinese handset market...I don't buy the argument that Kyocera will help open up the Chinese market. A couple of caveats....I am not saying that Qualcomm did not get the best deal possible. Who actually knows if Nokia was even in the bidding. However I don't see the huge posatives that everybody else does....please explain to me how Qualcomm is much better off than if they had simply kept the division themselves and continued to innovate. I don't mean from a financial situation but from a strategic one.... Slacker