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Technology Stocks : Qualcomm Incorporated (QCOM) -- Ignore unavailable to you. Want to Upgrade?

To: puzzlecraft who wrote (110353)	1/7/2002 11:52:19 AM
From: q_long	Respond to of 152472

If ASP goes down as a result of radio one there might be some offset in Latin America, India and China with greater penetration. IJ did mention the need for a sub $100 1 x handset for these markets.

To: puzzlecraft who wrote (110353)	1/7/2002 12:10:42 PM
From: P. W. Herman	Read Replies (1) \| Respond to of 152472

I don't see that shrinking BOM cost necessarily shrinks ASP. Especially when the same article said circuit board shrinks too. Smaller IC => smaller handset => greater/sustained demand/turnover. With same/similar ASP handset vendors get higher margin from lower BOM and Q gets same/similar royalty. Win, win, win . . . everybody happy.

To: puzzlecraft who wrote (110353)	1/7/2002 12:38:16 PM
From: kech	Read Replies (2) \| Respond to of 152472

Royalties go down if prices go down. But prices don't have to come down as much as costs if Q is the only supplier of these Direct Conversion Asics. Thus royalties will go down some but profit margins on ASICS should go up.

To: puzzlecraft who wrote (110353)	1/7/2002 2:33:01 PM
From: David E. Taylor	Read Replies (1) \| Respond to of 152472

puzzlecraft: People should re-read the Qualcomm PR on the seven planned members of the MSM 6xxx family before jumping to conclusions about the effects of the MSM 6000 chipset on royalties: qualcomm.com MSM6000 solution, announced on March 12, 2001: * Optimized entry-priced 3G cdma2000 1x integrated circuit and system software * Optimizes handset BOM, offering equal or lower pricing of 3G cdma2000 1x handsets compared with standard GSM terminals * Optimized system solution, allowing manufacturers to rapidly design new entry-level handsets for the 3G market * Leverages significant traffic capacity benefits of cdma2000 versus GSM * Fully backward compatible with IS-95A/B * Optimized to support voice and basic data capabilities * Two-way Short Message Service (SMS) * Offers seamless migration path to 3G services and applications * Sample shipments expected in early calendar 2002, with production quantities expected in the second quarter of calendar 2002 This "entry level" chipset is clearly aimed at the emerging mass markets in China, India and elsewhere, and is likely to be a very high volume product, albeit with lower ASP, and one that probably only QCOM will be able to supply. OTOH, the other planned MSM 6xxx chipsets will clearly command higher ASP's, and I bet the multi mode CDMA 1x plus GSM/GPRS/WCDMA chipsets will extract a much higher bounty from the GSM upgrade market, a market that, at least for a few years, QCOM will also dominate. David T.