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

To: laodeng who wrote (8297)	3/8/2001 12:25:58 PM
From: Caxton Rhodes	Respond to of 197214

MSDW-Qualcomm (QCOM-$58-SB) Addressable Market Highlighted Louis Gerhardy QCOM highlighted how its addressable market will expand from 20% to 100% of the growing handset market as it progresses to 3G. Unlike a vast majority of its competitors, QCOM's ICs are turnkey; QCOM's chips include protocol stacks and software that allows QCOM to capture roughly $20 per baseband processor IC. This compares with TXN's average baseband processor price that we estimate to be $10 per baseband unit. In addition to facing a expanding serviceable handset market, mgmt believes they will expand their dollar content in each handset. The incremental content includes power management, direct conversion RF ICs, power amplifiers, GPS functionality, and co- processors (the MSP family). We believe suppliers of the baseband processors are in a strong position to leverage their control of the baseband handset "heart" into adjacent IC opportunities in the handset. QCOM reiterated their guidance for 90MM CDMA handsets in C2001 (and 16MM+ in C1Q01 and more in C2Q01), vs. our estimate of 85MM. Upside to our estimate is possible in C2H01 as cdma2000 1x products ramp. Rapid progress in China or the conversion of non-CDMA networks to CDMA technology (e.g. Nextel) could serve as additional catalysts for QCOM.