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Technology Stocks : Nokia (NOK) -- Ignore unavailable to you. Want to Upgrade?

To: Puck who wrote (7508)	10/11/2000 1:07:38 PM
From: slacker711	Respond to of 34857

This must no doubt be a direct result of Nokia's aggressive program to take market share and fully exploit its superior cost structure and economies of scale to its opponents detriment. One thing that was slightly odd that came out of the MOT CC was that ASP's were basically flat from the second to the third quarter. They expect a more normal mid teens annual reduction in ASP's to resume in the fourth quarter. I'm not sure how this squares with the price cuts that Nokia had instituted during the quarter. I may have misheard....The 7:00am CC was a little early for me. Slacker

To: Puck who wrote (7508)	10/11/2000 1:33:55 PM
From: sisuman	Read Replies (2) \| Respond to of 34857

The QCOM advocates continually "enlighten us" with their huge claims regarding the speed superiority of CDMA technology. But the cell phone industry is about business, business, business, not technology. Motorola and Ericsson should be the leading "beneficiaries", and important keys to the success of, QCOM's technology and royalty based business approach. Motorola's latest results, and forward "guidance" show that it's barely making a profit in its handset business, and is rapidly becoming a niche player. Ericsson's forthcoming earnings results are expected to be a continuing handset financial disaster - leading to further clamor for them to exit the handset business. How can you have a successful business where only the technology patent holder makes money? I would expect that Motorola and Ericsson's respective managements regret the day that they ever fell for the great technology promise of CDMA. I doubt very much that they are going to continue to risk capital in pushing 1x, 2x, 3x or nx CDMA technology, only to see big profits go to QCOM while their profits are marginal at best. Furthermore, the I-Mode model demonstrates that business success, and profits, depend on "always on" and easy links to internet sites, rather than who has the fastest uplink/downlink speed. The worldwide move to WCDMA is gathering momentum. Even QCOM's chip business is being spun off in an effort to gain a foothold in the forthcoming lucrative WCDMA business. The next few years will continue to expose the impossibility of QCOM's and CDMA's position. I expect Nokia's earnings report for Q3 to be just one more example of the emerging world success of GSM and an open business model.