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: slacker711 who wrote (4452)	12/22/1999 8:02:00 PM
From: John Biddle	Read Replies (1) \| Respond to of 13582

...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.... Well, for one thing, other phone manufacturers will no longer see them as a competitor and may be more willing to buy chips from them, as well as pay for consulting assistance in getting new products to work quickly. I see that as a big positive. Might help push NOK and MOT over the edge.

To: slacker711 who wrote (4452)	12/22/1999 8:19:00 PM
From: William Hunt	Respond to of 13582

slacker711 ---great questions ---also "K" is not the tier one company that the analysts were looking for BEST WISHES BILL

To: slacker711 who wrote (4452)	12/22/1999 10:03:00 PM
From: w molloy	Read Replies (1) \| Respond to of 13582

>>what Qualcomm got out of this deal... 1. Most important. QCOM won't be seen as competing with their customers. 2. The handset business sucked. Jacobs Jr could not turn it around. 3. They niftely avoided a costly lawsuit by 'keeping' the QCP crew. The contracting out deal is valid for 3 years. At the end the staff will be mostly vested in their options. So - no lawsuit or costly settlement. Of course - I doubt they will recieve any new options in the meantime. I wonder when will KYO realise they have got shafted. A lot of the staff wanted the NOK deal. I don't really see them hanging around. The NOK HR department will have a busy New Year.

To: slacker711 who wrote (4452)	12/22/1999 11:37:00 PM
From: Valueman	Read Replies (5) \| Respond to of 13582

Slacker: Agree with your point #1--Kyocera is already using Q ASICs in their new models. This is not a new customer. The transformation of QPE to a royalty paying, ASIC buying customer is a positive, of course. #2--Kyocera is a world class manufacturer, but not of handsets. #3--I see Kyocera's exposure to the new KDD/DDI/IDO as a good reason for them to be chosen as the buyer. They are definitely motivated to speed up the deployment of the advanced features of CDMA so as to put DoCoMo in a position that is far from competitive. This, I believe, is a given. They will deploy high and higher speed data far in advance of DoCoMo. #4--can't comment on the Chinese market. I think anyone that does is purely speculating. I will believe that CDMA is being deployed there when I see the cash in the till. Until then, all chatter. One point not discussed here was a comment by Jacobs that the royalties paid by Kyocera remain the same as they were previously, and that they apply equally to 3G. There was also a comment about no change in royalty rates being a key in picking Kyocera. That tells me that Nokia or Motorola, or both, were strongarming Q for lower rates. Bravo for not caving in Dr. Jacobs. If Nokia wants to continue to stumble, let 'em. It doesn't hurt anyone but them. I can just imagine the high quality W-CDMA systems that they will be putting out if the simpler IS-95 is beyond them. Is Jacobs really setting up the Europeans for the grandest fall of all? Will high speed CDMA wireless deployments in Japan and Korea, as well as the US bring shame upon the GSM front who will be woefully behind in their own 3G scheme? I admit that I would have rather seen Nokia join the revolution, but remain on the dark side they must. And if they must, they will pay. What does Kyocera bring QCOM? Well, they paid up the cash(not much I'm sure), they signed the contract to use Q ASICs for 5 years, and they agreed to this goofy set up with the R&D division(do you really think cost plus will ADD to margins???). They turned away from DSP and the Intel power behind them, in favor of a QCOM led attack on Japan. That may be more of a plus than I think. Otherwise, the synergies escape me. I'm open to suggestions.