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

To: ggamer who wrote (23630)	4/26/2000 5:26:00 PM
From: slacker711	Respond to of 54805

If Japan does go with WCDMA technology do you think it will change the status of QCOM as a gorilla? For those who are currently worrying about the status of Qualcomm in the W-CDMA market....you might want to take a look at TXN. They have partnerships with Ericsson, Nokia and Sony for the development of chips for W-CDMA phones. Qualcomm will still get the royalties from W-CDMA....but if they lose the chipset market, the most obvious choice is TXN. Slacker

To: ggamer who wrote (23630)	4/26/2000 5:33:00 PM
From: Uncle Frank	Read Replies (3) \| Respond to of 54805

>> If Japan does go with WCDMA technology do you think it will change the status of QCOM as a gorilla? Absolutely not. Q's Gorilla nature is based on their ipr, and they can only be displaced by a discontinuous innovation, ie, something that leapfrog's cdma. Since wcdma is only a variant of cdma and royalties will still be due to Q, it will not affect their status as a Gorilla. An additional fact to consider is wcdma is vaporware at this time, and may never come out of the lab. uf

To: ggamer who wrote (23630)	4/26/2000 5:57:00 PM
From: Mike Buckley	Read Replies (1) \| Respond to of 54805

GGamer, I apologize for not responding to you. Occasionally I get my responses to similar questions in two GG folders I follow confused. I now realize I thought had responded to your post when I had about the same time responded to a similar post elsewhere. If Japan does go with WCDMA technology do you think it will change the status of QCOM as a gorilla? I don't think it will change the status as a gorilla but I do believe the profits might be lowere in the long run than if CDMAone became the standard in Japan. I can't articulate the reasons. I have to take the word of Jacobs who has many times implied that he's happy for anyone to use WCDMA but happier when they go the other route. I understand that QCOM will be getting royalty from any flavor of CDMA. But can they continue to hold on to their gorilla status in the CDMA market IF they will not dominate the ASIC side of the business in Asia and Europe. That's a question that I don't know the answer to any degree with strong conviction if you're referring to the maximum strength of the gorilla. I think Qualcomm would be a weaker gorilla if WCDMA dominates throughout the world. But I also believe there is merit to the case that a company can do well relying only on its IPR. Certainly selling the software in the chips would be better. --Mike Buckley