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Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: Uncle Frank who wrote (47554)	10/5/2001 6:34:27 PM
From: Eric L	Read Replies (3) \| Respond to of 54805

re: QCOM << Arguable, but they seem clearly destined to be the Gorilla of 3G >> Doesn't look like it to me. No proprietary control of the architecture for what will be the dominant installed base and with no architectural lock the competitive advantage is significantly diminished. Their great IP platform makes them a fine investment medium to long term but they are destined to be the chimpanzee of wireless and 3G will not have a gorilla. 3G is committee open architecture with the single exception of the niche Qualcomm will control. Gorilla's are first and foremost market leaders an if you look at the dominant players in wireless (and their are 2 huge ones in the two dominant segments) Qualcomm must grow in a manner well beyond what licenses, royalties and ASIC sales can deliver to be a market leader in wireless or 3G wireless. They will still be the gorilla of cdmaone/cdma2000 but hypergrowth there is over and infra revenue will be minimal compared to 3GSM and eventually same for handsets. All just my considered opinion, but one I give thought to each and every day. QCOM remains after all, my largest port holding (19.4% - boy did that come down recently), and wireless my principal sector (33%). Best, - Eric -