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

To: brian h who wrote (113298)	2/14/2002 3:24:34 PM
From: Jorj X Mckie	Read Replies (1) \| Respond to of 152472

That is part of my point. Nobody ignores China. But, I think that almost everyone overestimates the opportunity in China. They see this huge population and assume that it is there to be exploited. Most importantly, the Chinese know this and in turn exploit the vendors selling into China by forcing price competition that brings margins down to the absolute minimum. Right now, you have companies giving away goods and services just so they can get their foot in the door in China. The idea of course is that the incumbent will be best positioned to sell into China in the future at more profitable prices. This should concern QCOM shareholders at two different levels; 1. It is true that incumbents have an advantage and QCOM is not the incumbent. 2. What if China runs into an overcapacity issue on their buildout like the U.S. did? Where is that future business going to come from?