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

To: William Hunt who wrote (383)	7/7/2000 9:02:48 AM
From: Junkyardawg	Read Replies (1) \| Respond to of 197505

Anyone know why we haven't heard anything offically from the company(QCOM) yet? dawg

To: William Hunt who wrote (383)	7/7/2000 9:26:02 AM
From: Jeff Vayda	Read Replies (1) \| Respond to of 197505

I dont think the Korean's view this as a Zero Sum Game. They have shown they can produce superior CDMA products. The export market is very lucrative. IMO, the Telcos went to the government and asked for the mandated subsidy ban. The subsidies (and the churn it produces) seriously cuts into the profit margins of all the companies. In order to save face (and not be crushed in the market place if one tried it unilaterally) the government action was the only way they could get out from under the dependency the telcos established in their consumers. Stopping the churn reduces costs to the telecos and has the added benefit of freeing up capacity for a more profitable export market. This is all about money and in the commodity business money means market share. Koreans dominate CDMA market share. Where to turn? WCDMA. Is that so difficult? Does it mean they will turn their backs on their dominance of CDMA market share? Not a chance. All they are doing is attempting to increase worldwide market share. In the government supported industrial relationship that is Korean phone production, some allowances to WCDMA are only logical - and makes sound business sense. The best course for them is to play both sides of the fence - for the same reason it was the best course for Qualcom to exit infrastructure and handsets. Jeff Vayda