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

To: Jim Mullens who wrote (28930)	11/15/2002 12:19:32 PM
From: slacker711	Read Replies (3) \| Respond to of 197207

My reply- Agreed, I'm sure a GSM only phone would be cheeper, but with GPRS added I'm not so sure. If Qualcomm wants to break into Euroland, I'm sure they will price it attractively. Don't forget, R&D is already expended, and they will soon be supplying low-tier entry level MSM6XXX 1X chips into the Indian and S. American markets for handsets to be priced at $70 or less. I would think they could find a way to provide a basic entry level GSM/GPRS- CDMA20001X chipset without all the bells & whistles (for those who wish such ) at a competitive price just to crack the market. Maybe they don't even need a new chip, perhaps some of the features can be easily disabled. I am pretty sure that Q's MSM6300 would be significantly more expensive than a GSM/GPRS chipset from TI. Generally, I think TI gets less than $15 for its chipsets.....in contrast to the $25 or so that Qualcomm receives. Qualcomm might have to sell the chipset below cost to make it competitive with TI's GSM/GPRS offerings. Most of the world is pretty well served by a tri-band GSM handset for roaming. Telefonica and Vodafone are probably the prime European operators looking at this chipset, but I dont think they would be willing to subsidize every handset just to take advantage of international roaming. This is a pretty small part of the overall market and is probably dominated by those who can afford to buy high-end handsets (which are generally less subsidized). Slacker

To: Jim Mullens who wrote (28930)	11/15/2002 12:32:08 PM
From: gdichaz	Respond to of 197207

Jim: A special welcome. Remember the days of moons ago on AOL and the learning done there. Came to SI for the likes of Gregg Powers and continued learning here. Your letter is absolutely on the mark IMO. Since Ramsey tries hard to keep this place one of content, your first two posts meet that test in spades, so I have to add a bit here next. What will happen in the future is speculation, but we can speculate on as informed as basis as we can, and this place is a good source of background, relevant info (mostly) and opinion (some on the mark, some misses). The exchange usually clarifies - an iterative process. As a non tech myself, I am grateful to engineer, Clark and others who continue to provide solid tech views. On the Q and its future, I found the analysts meeting in London the best status report to date, and there have been excellent ones in the past, and commend it to all by going to the Qualcomm main page. Most interesting to me is the way Qualcomm's management not only are at the forefront of their technology but their clear open explanations of what they are doing, why, and what they intend to do. What continues to amaze me is the combination of technological and management skills. To me, the most interesting was the way the Q is covering all the bases. They have passed Texas Instruments in chips. Their licenses are essential and pervasive in every flavor of CDMA and in the licensing process has picked up GSM/GPRS along the way. This as you point out enables them to have "world phone" chips of not just one but multiple flavors and capabilities. Awesome. I have always felt Qualcomm's Asia "card" has been key. That is now proven. Can the Q breach the EU's moat? On that I have been a skeptic, perhaps even a pessimist, but even there I see a few small potential opportunities. Yet, when push comes to shove, I still think the EU bureaucrats will find a way to continue to impede the use of CDMA on current frequencies in Western Europe and deny the EU consumers (those stuck behind the moat) access to the world's best - which IMO is EV-DO. Hope I am wrong. Elsewhere outside of the EU I see major opportunities - although getting around government restrictions (often bought and paid for by entrenched interests) will be difficult and time consuming. Russia will be a fascinating case study for example. Last, the "world phone" to me is the 6500 which includes EV-DO. Best, and again welcome. Chaz

To: Jim Mullens who wrote (28930)	11/15/2002 1:41:28 PM
From: gdichaz	Read Replies (1) \| Respond to of 197207

Jim: I have long maintained that the US is stuck with two weak reeds on which to lean for CDMA data - Verizon and Sprint - for different reasons. But that is the real world. Verizon is old world wireline driven and saddled with lots of "legacy". Sprint weak in financial resources and hampered by the "parent company" (the old wireline guys"). Seems borderline hopeless. Yet those are the Q's horses in the US race. Fortunately, AT&T while a marketing wiz has garbage to market. Likewise T Mobile. And Cingular is a camel with humps evident. So, what will happen? Or what can Qualcomm do? Verizon has BREW and has two trials of EV-DO. So there is hope there. Sprint has neither - ugh. Curious what your views are. Best. Chaz