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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 (41366)	6/30/2004 11:02:18 AM
From: slacker711	Read Replies (2) \| Respond to of 196764

Here’s the deal. Its my understanding that Q’s production costs are under $10/chipset (before the markups) which would allow the Q to price it very competitively with any of the GSM stuff if it chose to do so. All indications are that’s the Q intent, and why not. It would be an insanely bad business decision....that's why. 1) TI has a lower cost structure for GSM chipsets than Qualcomm. Their chips wouldnt include a CDMA component so it would require lower processing power. They also have a substantially higher volumes and they have their own fabs (no 10% margin for TSMC). 2) You cant just lower the price on the MSM6300 and keep the rest of the chipset pricing the same. If the MSM6300 was a sub $20 chip, orders for the MSM6100 and the MSM6050 would dry up entirely. ASP's and margins would tumble immediately. Luckily, I trust Qualcomm's management enough to believe that this isnt even remotely on their radar. Slacker