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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 (21115)	4/4/2002 8:22:48 AM
From: Dexter Lives On	Read Replies (2) \| Respond to of 196634

slow 1xRTT adoption in the US I don't get it - I've been reading here for months that 1x was going to fly out of the gate!? Say an early goodbye to Sprint... Rob Message 17284098

To: Dennis Roth who wrote (21115)	4/4/2002 8:35:41 AM
From: Dennis Roth	Read Replies (1) \| Respond to of 196634

Korean sales may aid Qualcomm 2nd qtr - analysts totaltele.com By Reuters staff 04 April 2002 Better than expected sales offset low U.S., China sales. Strong cellular handset sales in the first quarter of 2002 in South Korea could offset weakness in other key markets and help wireless technology vendor Qualcomm Inc. make its fiscal second-quarter earnings estimates, two industry analysts said on Wednesday. "Better than expected results in Korea could offset weakness in other markets, giving us confidence that our total 2002 CDMA handset estimate of 76 million units is achievable," UBS Warburg analyst Jeffrey Schlesinger said in a note to clients. CDMA refers to Qualcomm's Code Division Multiple Access wireless technology. The high-speed "2000 1x" version of the CDMA technology, which has been dominant in the U.S., is now gaining a foothold in Asia as well. Bear Stearns analyst Wojtek Uzdelwicz said in a client note that leading South Korean carrier SK Telecom , which uses the 2000 1x technology, reported a total of 1.3 million new subscribers in the first quarter of 2002, its third-best quarter ever. A total of 13 operators worldwide have launched the new CDMA 2000 1x networks, including Japan's No. 2 cellular carrier, KDDI Corp., earlier this week. Uzdelwicz said the higher prices for 1x chips compared with regular CDMA chips and higher-than-average royalties from Korean carriers would generate additional income for Qualcomm that would offset what he said was weakness in subscriber growth for U.S. CDMA carriers. But Schlesinger said late-year U.S. sales were key. "With Korean handset shipments tracking ahead of our estimates and expectations for demand in China greatly reduced from last year's forecasts, we believe the biggest swing factor for Qualcomm this year will be the take-up of 1x product in the U.S. market in the back half of the year," he said. Expectations for demand in China fell after China Unicom Group last week said it had signed up only 650,000 CDMA subscribers in the first quarter. The company has said it expects 7 million by the end of the year, which analysts now say is unlikely. Unicom spent $2.9 billion last year to build a nationwide CDMA network but said last week it would cut capital spending by 30 percent in 2002 over 2001, in the face of the slow take-up of the new service. Earlier on Wednesday, Jeffrey Belk, Qualcomm's vice president for marketing, told reporters in Hong Kong that the company still expects to see 4 million subscribers in China this year. Shares in Qualcomm were up 2.4 percent, or 91 cents, at $38.18 in afternoon trade on Nasdaq. (With additional reporting by Rico Ngai in Hong Kong) 2002 Reuters Limited. All rights reserved.