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

To: pass pass who wrote (129918)	6/26/2003 8:39:42 AM
From: Art Bechhoefer	Read Replies (2) \| Respond to of 152472

>>take partial ownership of some Asian wireless carriers<< This is definitely not a good idea, since outsiders are generally at a disadvantage when trying to run a business or set policies for businesses in many of these countries. The same corporate objectives for QUALCOMM are met through royalties from the sale of handsets in these countries. What QUALCOMM has done, especially in China, is to make licensing agreements that are so advantageous to Chinese companies that they have difficulty NOT adopting CDMA. Also, in my view, QUALCOMM has wisely avoided getting into the manufacturing business. They did this initially with Sony, at a time when nobody was making CDMA handsets, and QUALCOMM needed to assure the service providers of a reliable source for handsets. Manufacturing requires a different set of skills from those needed to design new products, and QUALCOMM prefers to do what it does best--design new products. The only exception is OmniTRACS, which was QUALCOMM's first product, and which continues to be a real money maker because there is almost no competition for the product. (Other products available on the market do only a small part of what OmniTRACS does.) I'm sure that if partial ownership of Asian telecom service providers were feasible and potentially more productive than the present policy, QUALCOMM would have made the appropriate investments. Art