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Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: Mr.Fun who wrote (20052)	3/13/2000 5:14:00 PM
From: kumar	Respond to of 54805

pardon me, i dont understand : 10. In contrast, (and in the spirit of controversy) I would question JDSU's inclusion as a king. ... But I posit that it is in fact a king, not a gorilla. BTW, I am not long either JDSU or NOK. cheers, kumar

To: Mr.Fun who wrote (20052)	3/13/2000 5:14:00 PM
From: 100cfm	Respond to of 54805

JDSU is a great investment, a leading player in perhaps the hottest part of the high tech landscape. But I posit that it is in fact a king, not a gorilla. You won't get an arguement over that from us. Re customer loyalty to Nok. I wouldn't count on that too much. People will buy the best phone for the money. We havn't seen Kyocera's and Ericy's new CDMA phones yet. They will have the advantage of being first to market. Nok will not steal the leader's position just because they are NOK when they finaly do come out with a CDMA phone, their version will have to be better. I would also not bet too heavily on that fact if they decide not to use Q asics. 100

To: Mr.Fun who wrote (20052)	3/13/2000 7:15:00 PM
From: LindyBill	Respond to of 54805

Thanks for the post, Fun. Glad to see you on our thread. You did a very nice job of laying out Nokia's strengths. It is a King, and cannot be a Gorilla, under the definitions we use. To be the Gorilla of handsets, everyone else would have to pay them a royalty. Nothing wrong with being a King, a lot of us have made more money on Kings than Gorillas. I think you meant to say that JDSU is a King, not a Gorilla. If you did, you are right, IMO. They have a tremendous lock at the moment, but eventually will get some pricing pressure, as you point out.

To: Mr.Fun who wrote (20052)	3/13/2000 7:38:00 PM
From: Uncle Frank	Respond to of 54805

It's always a pleasure to have you stop by, Mr. Fun. >> Having witnessed Tero's long-standing abuse on the Nokia thread by the monomaniacal QCOM crowd, I can understand his over-sensitivity (some might say paranoia) here. I think he got a pretty fair shake on G&K, particularly in light of the fact that 95% of us own Qualcomm. We enjoy having company experts present their views, and intelligent discourse is always welcome. >> It is evident in Nokia's handset operating margins, which at nearly 25% are 4 times higher than any other competitor I am guessing that Nokia's handset operating margins are at such high levels because they manufacture their own chipsets. This is precisely their dilemma with respect to cdma. They are far behind in cdma handset development despite being one of the earliest cdma licensees, because they have been unsuccessful in designing a competitive chipset on their own. As a result, Nokia has not gained a significant share of the fastest growing segment of the wireless market. But if they solve the problem by purchasing chips from qcom, their handset operating margins will dive to the level of their competitors. jmho, uf

To: Mr.Fun who wrote (20052)	3/13/2000 8:26:00 PM
From: Kent Rattey	Respond to of 54805

Mr Fun, I have great respect for your routing/network knowledge. However, you don't appear to follow wireless as close as the data networkers. In Fiber Optics, we need to talk. "However, for almost every part JDSU makes for almost every customer, there is a second or even third source." Perhaps I am misunderstanding this statement, and you could be a little more specific on "parts". I assume you refer to components as parts. That being the case, components are exactly the business model that JDSU is migrating away from. Currently, 30% of JDSU's portfolio of products are modules, and this is increasing rapidly with their acquisitions. There are not second or third sources for their modules. The key to JDSU's dominance is their diverse technologies and their ability to modulate them. They are the only company on the planet that has laser technology, modulated technologies, semiconductor optical amplifier technologies and wave guide technology. There are no others(including LU). Drop on over to the JDSU thread sometime. I haven't read the book so I don't know what to call them. It's not really my issue here. However, they are clearly dominant in one of the fastest growing infant industries around, with the broadest technological offering, and huge barriers to entry. This is from the Ottawa Citizen; JDS is the globe's biggest independent supplier of fibre-optic components. Indeed, with its recent acquisition of E-Tek Dynamics Inc. of San Jose, California, it has grown so big in its niche that Nortel Networks Corp. chief executive John Roth has expressed some concern about a lack of competition in the components sector. Kent