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

To: Dexter Lives On who wrote (117941)	5/2/2002 1:45:37 PM
From: David E. Taylor	Read Replies (1) \| Respond to of 152472

rob: ...Qualcomm has priced cdma out of the market... Oh come on! QCT has about a 50% margin on the ASIC's it sells, and collects on average, about 4.5% royalties on CDMA handsets. Cisco sports around a 60-65% GM on its its gear, so what's the difference? And don't tell me these startups are altruistic enough to give their stuff away. You keep overlooking the fact that it's the carriers that have to buy the technology and the equipment, and that they already have huge investments in their existing core networks. Flarion's stuff - or some development of it - may eventually get there, but you only have to look at how slowly circuit switched voice telco networks are being supplanted by VoIP to realize that the enormous investment in existing wireless networks just isn't going to be junked overnight just because someone has invented a better mousetrap, no matter how many Cisco's put their shoulder to the wheel. Cisco has been pushing its vision of all telecom going VoIP for years, and been after the LU/NT et al Telecom equipment business for years, and hasn't exactly won yet. JM2c worth, and I guess we agree to have diametrically opposite points of view on this - not on the technology itself, but on the speed and the extent to which it will see commercial deployment and success. David T.