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Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: ggamer who wrote (52942)	11/7/2002 1:58:39 PM
From: Mike Buckley	Respond to of 54805

ggamer, I hope you don't mind if I answer one of your questions directed to Eric. What do you think a company like QCOM can do to become a gorilla of wireless at this point in time? QCOM only has one option to accomplish that and I don't think it's particularly viable. I'd like to be proven wrong in the future, but I don't think I will be. That option is to get CDMA2000 and/or future generations of it adopted by about 60% of the worldwide market. In other words, I don't believe there will ever be a Gorilla of the wireless market. My investment in Qualcomm has never required that Qualcomm becomes the Gorilla of all things wireless. --Mike Buckley

To: ggamer who wrote (52942)	11/7/2002 3:00:34 PM
From: Eric L	Read Replies (2) \| Respond to of 54805

GGamer, << In your opinion is QCOM a gorilla? >> Yes. QCOM is the gorilla of cdmaOne/cdma2000. << Should we be invested in QCOM knowing what you know now? >> I don't know about you, but I'm invested in QCOM knowing what I think I know now. I am assuming they'll start to put consistent GAAP earnings on the bottom line. I'll continue to watch earnings closely in that regard, however. << What do you think a company like QCOM can do to become a gorilla of wireless at this point in time? >> I'm not sure they can. I think it's too late. Having said that some miracle could happen. The Chinese government and MII could mandate cdma2000 migration for all C3G to China Mobile, China Netcom, China Telecom, China Y and china Z. SKT and KTF could flip back their IMT-2000 3G decision, blah blah, blah. << Where did QCOM go wrong to become a gorilla? >> Focus on air interface rather than the complete platform, including lack of emphasis on underlying services and protocols, lack of emphasis on vendor to vendor and network to network interop and uniform deployment, lack of emphasis on voice and now data roaming. Things are getting much better in all these regards, but it is pretty late in the transition, IMO to undo what's done. << Are you 100% that the rest of the clowns will be able to make WCDMA work? >> No. My confidence factor is only 98.7%. Best, - Eric -