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

To: Dennis Roth who wrote (20292)	3/13/2002 9:14:59 AM
From: Ramsey Su	Read Replies (2) \| Respond to of 196664

Dennis, I do not think Haier is sour graping but rather pointed out the differences of the Chinese market. Here are some of the issues, most I believe are correct but cannot source for absolute authorities: Chinese carriers apparently do not order and resell handsets the way we do here. I do not understand how it works exactly. Does the retailers order handsets directly from the likes of Haier? Now who would blame the likes of Haier for not mass producing until it is clear the demand/orders are there? Unlike US consumers who are willing to buy a new handset every other month, Chinese consumers consider handsets a major investment. With 3G looming in the horizon, they are facing a "why buy Pentium III when Pentium IV coming next month" type dilemma. This is an even bigger problem for GPRS because they will need to sell consumer a clearly deadend handset. I understand that Unicom is given the authority to charge 10% less than China Mobile. How exactly does it work? Do they mean the per minute rate? In either case, may be we can just assume there is some advantage that Unicom could have in pricing but is not using yet. Handset subsidies appear to be reality. Unicom appears to be ready to take a page out of our marketing schemes. There are far more attention paid to the use of capital in China. I frequently see articles that addresses how much advertising campaigns are, something that we almost never heard of being mentioned separately here. I have to conclude that the China CDMA launch has not exactly been picture perfect. Looking on the bright side, it certainly appears that Unicom is now totally committed to CDMA. Ramsey