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Pastimes : The New Qualcomm - write what you like thread. -- Ignore unavailable to you. Want to Upgrade?

To: DWB who wrote (1733)	5/25/2000 4:06:00 PM
From: seahorse	Respond to of 12231

good sign off.

To: DWB who wrote (1733)	5/26/2000 12:13:00 AM
From: Maurice Winn	Read Replies (1) \| Respond to of 12231

Good post from Mr Fun, explaining why Nokia might not buy ASICs from Q! even if it's a big struggle. -----------------------------------------------------To: samim anbarcioglu who wrote (4983) From: Mr.Fun Thursday, May 25, 2000 10:30 AM ET Respond to Post # 4994 of 5013 Sam, since you are so fiesty with other people's posts, let me take exceptions to several points made in your recent missive. 1. >>After all, the US has very low wireless peneration at the moment(30 % or so) and it will be 80 % o so in 3 - 5 years, and the US is going CDMA.<< Experience in Finland, Sweden, and South Korea suggests that penetration rates slow dramatically when you get to about 60%. I have not seen any serious market study suggest 80% penetration in the US in 10 years much less 3-5. 2. >>But NOK has not been able to design and manufacture a CDMA ASIC that is acceptable in quality to the US carriers.Sooo, guess what. NOK goes back to the drawing board and tries to come up with their own CDMA ASIC.<< This point is true, but perhaps not for long. After a year of offering CDMA handsets Nokia has captured about 10% share in Canada and Latin America. Sprint has approved the CDMA 5100. Word on the street is that Bell Atlantic has finally approved Nokia's most recent CDMA implementation. 3. >>Why not buy them from QCOM, build the phones, conquer the market and be done with it and the NOK stock price will be $100 in 3 - 4 months, just wait 1 reporting quarter. But as you will see, this is sacrilege. What? do business with QCOM? We would rather eat moose dung. As you will see as you stay around more, that particulary some Nordic contributors on this thread see this whole thing as a chauvinistic thing i.e. my country has more wireless, We are the leaders you are not, my phone is bigger than yours etc. The concept of improving the bottomline of this company and increasing shareholder value does not cross the minds of these people. They are simply obsessed with their country's pride, how to defend it against the US technological invasion of turf (as they view it)<< There are very sound business reasons for not buying QCOM chips. First, every Nokia phone is built off of the same core TI DSP. This allows them to maintain an unheard of 80% commonality of parts, which in turn gives them enormous advantages in purchasing and manufacturing. This gives NOK a 10-15% cost advantage over every competitor. If NOK succeeds in implementing CDMA-One on the TI chipset, this advantage is carried over to the CDMA market. QCOM charges alot for its chipset and if NOK were to buy it the cost advantages of its business model would be obliterated. Given the competition is Samsung, AudioVox and Kyocera, Nokia is not exactly scared that it won't be able to make up lost ground once it has the implementation of CDMA on TI right. Sustaining margins is just as important as building market share - ask Motorola. This is not a holy war. It's just good business. --------------------------------------------------------- BUT slacker711 pulled him up!http://www.siliconinvestor.com/readmsg.aspx?msgid=13775912 -------------------------------------------------------- To: Mr.Fun who wrote (4994) From: slacker711 Thursday, May 25, 2000 11:27 AM ET Respond to Post # 4996 of 5013 . Sprint has approved the CDMA 5100. Word on the street is that Bell Atlantic has finally approved Nokia's most recent CDMA implementation. I really hope that you meant to say the 7100....the CDMA version of the 5100 (the 5170) is a two year old phone that currently shows up on the Sprint PCS discontinued list. I'm also not sure what phone BAM has approved...It's a little late for the 6185 to be approved. The tri-mode Startac and Audiovox are both better phones for a similair price. I'm still hoping for a CDMA version of the 7100....I dont care who's chips are on the inside. Slacker