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

To: the_rich_janitor who wrote (125221)	11/8/2002 2:27:43 AM
From: Maurice Winn	Respond to of 152472

<John is right about one thing. Chinese manufacturers will not pay QCOM royalties on exports for a long time.> That's okay by me. I take a long range view of these things. I've been waiting for over a decade for QUALCOMM to finish the development phase of CDMA and then the cyberspace connection. I've been happy that all the money went back into development and research. Now though, I'd like to see some dividends. I think QUALCOMM should start paying out profits. There's a big stack of cash in the bank with mountains of it rolling in. CDMA doesn't need support to be accepted as a standard now. Everyone knows it works and there are $$billions to be made. China is on the bandwagon too and all QUALCOMM needs to do is show them how and get out of the way. Sure, it'll take a few years before China's 7% exports get underway and money drops to QUALCOMM Mothership's bottom line. That's okay. There's a lot of work to do to get China up to speed so I'm happy for the money earned in China to go back into developments in China. It won't be much anyway. At 2% royalty, it's a piffling amount. I am interested if ASIC revenues are reported by a Chinese subsidiary of QUALCOMM and the money can't leave China. But that shouldn't matter unless the expected situation in 5 years or 10 years is for the Chinese government to steal the money. I don't think that'll happen. But anything is possible in politics [NZ has gone down the Kremlin route in recent years]. QUALCOMM will sell ASICs to the China subsidiary, which will sell to local manufacturers. Like stock options, it's a potentially serious problem. But as with QUALCOMM stock options, I think they'll manage the agreements with China reasonably enough that shareholders won't be left bereft. As you say, QUALCOMM can stop ASIC shipments any time royalties are slow coming. USS Enterprise won't have to spend long dealing with Saddam. They could park alongside China if China adopts theft as their modus operandi. I doubt that'll happen. China's trend is to become the global leader they were 2000 years ago. They can't do that by stealing. Mqurice