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

To: Jon Koplik who wrote (32665)	2/19/2003 10:22:38 PM
From: Jim Mullens	Respond to of 197227

Jon, thanks for the WSJ Qualcomm/ Nokia article. The following statement by the WSJ authors DAVID PRINGLE and PUI-WING TAM indicates they don’t understand Qualcomm business model. FWIW I have emailed the following to the authors. DAVID PRINGLE and PUI-WING TAM Thanks for your recent WSJ article “Nokia Qualcomm Battle Over 3G Market-Share”. From the following statement, I believe you fail to understand Qualcomm’s new business model. >>>>>“If Nokia is to increase sales in its flagship mobile-phone division much further, analysts believe it must win share from Qualcomm's customers in the 3G market. That, in turn, would limit the San Diego chip maker's own growth prospects. <<<< Qualcomm’s future business model in support of the mobile wireless handset business will soon include sales of chipsets to support GSM/GPRS, and all flavors of CDMA (CDMA95, CDMA2000 and WCDMA), and as such represents virtually 100 percent of an ever expanding market. Qualcomm’s current market of mobile wireless subscribers has been limited to the “niche” of CDMA95 and CDMA2000 which currently stands at less than 15%. Qualcomm’s chipset sales represented approximately a 75% market share of that 15% slice of the total mobile wireless market. I venture to say that having only a 20% share of chipsets for the total world mobile wireless market would significantly enhance Qualcomm’s “own growth prospects” You quote Dr. I. J. as saying- “his company aims to capture 50% of the market for chips to control GSM/WCDMA handsets.” In addition to the chipset business, you apparently fail to understand that Qualcomm would receive (a not to be sneezed at) ”token” (5% approximately) royalty fee on virtually every 3G phone sold. IMO. irregardless of what Nokia is able to come up with for 3G, Qualcomm’s “own growth prospects” going forward are substantial. Thanks for your time. Jim Mullens