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

To: Cosmo Daisey who wrote (17052)	12/3/2001 9:41:04 AM
From: slacker711	Read Replies (2) \| Respond to of 196559

China could be the largest CDMA market in the world but QCOM won't necessarily collect royalties. We had a discussion about this over on the unmoderated Qualcomm thread.... 1) The agreement with China requires that they use Qualcomm's ASIC's. It has an out clause (based on price/performance) but for the forseeable future they will be using Q's ASIC's. I think Qualcomm will be able to figure out if something weird is going on when a company order 10 million ASIC's but only pays royalties on 1 million handsets. 2) Many of the handsets are going to be produced by JV's between Chinese and foreign companies. They will have quite a bit of leverage over the foreign partners if some type of cheating were to occur. Slacker