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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 (41291)	6/25/2004 2:59:03 PM
From: JohnG	Respond to of 196989

Wireless China handset makers 'significantly' affected by component shortage - analyst , 06.25.04, 10:21 AM ET BEIJING, Jun 25, 2004 (AFX-ASIA via COMTEX) -- China's mobile phone manufacturing industry has been "significantly" affected by a shortage of handset components including chips, vibrators, LCDs and connectors, amid booming demand for the components from the communications and IT industries, an industry analyst said. "Domestic handset makers have been affected more or less, which had slowed and will slow their launch of new models in the market," Chen Jian of Galaxy Securities Co Ltd said. "However, multinationals such as Samsung Electronics, Nokia Corp and Siemens AG, were (affected only) slightly or not affected (at all), as they either have certain electronic component production lines or have secured stable source of supply due to larger scale of production," Chen added. China's major handset makers including the top three -- Ningbo Bird Co Ltd (SHA 600130), Konka Group Co Ltd (SZA 000016; SZB 200016) and TCL Corp (SZA 000100), have been affected in various ways, including delayed or disrupted handset production plan, domestic media reported. The 21 Century Business Herald had reported earlier that Ningbo Bird Co Ltd (SHA 600130), China's top mobile phone handset seller last year, has cut orders for relevant components in the first half of this year as it failed to receive delivery of chips in time. It quoted Bird's vice general manager Dai Maoyu as saying that "Bird is engaged in integration with suppliers" and the company "has been aware of the importance of tying up with industrial leaders to solve the problem of handset components". The newspaper also quoted Wan Mingjian, general manager of TCL Mobile, as saying that the company has "formed strategic alliance with key suppliers." When contacted by AFX-Asia, a spokesman from Bird however denied that that company has been affected by a component shortage. Meanwhile, Konka said in a statement that the company "encountered some minor problems in raw material supply earlier. However, all these have been solved." A company spokesperson denied a media report that its handset production plan was affected due to disruption in component supply. "China's handset makers lack core technology and rely largely on imports of electronic components, which are doomed to be severely hit amid global supply shortage," commented Wang Guoping, another analyst with Galaxy Securities. "In the global electronic components supply chain, Chinese handset makers cannot compete with multinationals in attracting sources of suppliers, as the latter has much larger orders as well as better established links (with suppliers)," Wang added.

To: Jim Mullens who wrote (41291)	6/26/2004 11:14:34 AM
From: slacker711	Read Replies (2) \| Respond to of 196989

I was about to write a lengthy response to your post.....but I realize that wont accomplish much. The essence of your argument boils down to the fact that if it isnt confirmed by Qualcomm that it cant possibly be true. I will agree to disagree and move on. Personally, I look at this a single negative data point and will begin looking for possible confirmations/contradictions. Qualcomm's growth during the first half has been all the more remarkable considering the fact that not all of its end markets have been performing well (India has been terrible and China mediocre). The question going forward will be whether those markets can recover and if they dont if it will have significant impact on results. Slacker