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Technology Stocks : Qualcomm Moderated Thread - please read rules before posting -- Ignore unavailable to you. Want to Upgrade?

To: Dennis Roth who wrote (331)	7/6/2000 5:59:42 PM
From: Dennis Roth	Respond to of 197469

CDMA handset exporters in Japan and Taiwan applaud the Ministry's mecantilist policy that will make Korean handsets uncompetitive in the world market and cripple Korean handset exports. Korean handset manufacturers were not importing parts because they enjoy wasting money. They use imported parts where it makes commercial sense. I thought this kind of mecantilist thinking went out in the late medieval time. I think once the handset exporters carefully explain to the Ministry bureaucrats that this will cost them export orders and hurt the trade balance, not help it, that they will back off. Announcing the plan, which envisions 100 percent domestic production of CDMA and ADSL parts by the end of next June, the Ministry of Information and Communication said it was prompted to take action by the steep increase in parts for mobile communication devices which are taking a heavy toll on the nation's trade balance.

To: Dennis Roth who wrote (331)	7/6/2000 10:00:31 PM
From: Dennis Roth	Respond to of 197469

Open letter This started ad a response to a PM but mysteriously I am now no longer authorized to send PM's so I'll just post my answer here while I'm still permitted to post. >> Do you know if this article about Korea producing components internally, came out before the market closed, or not? << I don't know and I don't care. >> I didn't want to bring this up publicly, but do you think this will tank the stock tomorrow? << It could, I've been in since 1996. I could use a buying opportunity to pick up some more. I've greatly reduced the amount of margin I'm using this year and I'm relatively bullet proof to short term gyrations and panics. >> I didn't realize that Samsung was licensed or capable of making their own CDMA chipsets. << They, LGIC and some others. They don't use their own chipsets because it cheaper and quicker to market to use Qualcomm's >>If this really happens next June, that could be the end of all QCOM chipsets to Korea. << It would also be the end of Korean CDMA handset exports. Trying to develop your own chipsets is the Nokia CDMA path and it means you're always a generation behind Qualcomm and the handset makers who have no quams about using Qualcomm chips will always beat you to market.