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

To: Art Bechhoefer who wrote (33004)3/2/2003 11:51:25 AM
From: kech  Respond to of 197246
 
Art- The direct effect of a price reduction is a loss of revenue and profit. The hoped for follow on effect is that demand increases to reduce these losses. This would only be the case if the price elasticity of demand was greater than 1. The rest of my discussion was about why it would not be greater than 1. Tom



To: Art Bechhoefer who wrote (33004)3/2/2003 1:45:25 PM
From: engineer  Read Replies (1) | Respond to of 197246
 
Your argument is totaly wrong, Art. they are competing wiht a technology which has an AVERAGE royalty rate abgove CDMA and is still ouselling (in absolute numbers) them around the world. If this were true then GSM would be not selling at all.

No, it is a thinly veiled attempt to take away teh cash flow that fuels the competitor, plain and simple. And the lower royalty rates would not significantly increase teh chip sales.


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