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Technology Stocks : Qualcomm Incorporated (QCOM) -- Ignore unavailable to you. Want to Upgrade?

To: tekboy who wrote (71274)	4/27/2000 12:37:00 AM
From: DWB	Respond to of 152472

An interesting read... something that caught my eye under competitive analysis... Having positioned itself as primarily a chip-only entity, Qualcomm now faces some major challenges in its core business - CDMA-based chipsets, which provide the critical functions in a cellular phone handset. Qualcomm is expected to get some new and formidable competition from the likes of Intel Corp. and Lucent Technologies Inc. and established CDMA chipset suppliers, including LSI Logic Corp., and Philips Semiconductors, are preparing to expand their presence in the chip market this year. LSI Logic recently shipped its initial CDMA-based chipset. Perhaps the biggest threat to Qualcomm's market share are two major OEMs-Motorola and Nokia-both of which sell CDMA handsets based on their own, internally developed chipsets. Shortly after Intel acquired DSPC in November, it renegotiated the CDMA-based chipset license with Qualcomm. This, in turn, gives Intel the rights to sell DSPC?s line of CDMA-based chipsets in the market, according to a Qualcomm spokeswoman. [2] Qualcomm doesn't compete with Lucent, as far as I know. All press releases out of Lucent usually mention a collaborative effort between the two. Calling LSI and Phillips established CDMA chipset suppliers is a bit of a stretch. In fact, Phillips currently doesn't have a license since they haven't been able to renegotiate the VLSI license that became null and void when they bought the company. If Motorola (who is now QCOM's fastest growing ASIC customer per Sulpizio at the last annual meeting) and Nokia (who still can't get Sprint to take their CDMA phones) are the biggest OEM threats, we should be sipping umbrella drinks around the pool right about now... and while it is true that they renegotiated the license with Intel, they didn't have to, so I imagine the terms were favorable, and they weren't terribly afraid of the DSP lineup that INTC bought. DWB Q2.5K/Y2K+5