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

To: slacker711 who wrote (41367)	6/30/2004 12:15:21 PM
From: Jim Mullens	Read Replies (2) \| Respond to of 196765

Slacker, Re: Unicom/ MSM6300 pricing, and “ 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. “<<< Again, we’re talking about a “attacking” a potentially huge market of 78 million subs and still growing (just for Unicom). The handset replacement market for Unicom alone should be in the neighborhood of 25 Million handsets annually, a huge market. Initially I would imagine dual mode handset would sell in the range of the higher tier GSM units because of the pricing power of the ‘new ness” and the handset mfg’s desire to recapture R&D costs. However, Q has stated their desire to segment this market to the mid and eventually the lower tiers as well. Unicom has stated on many occasions the benefits of the “world phone”, differentiating their services- - allowing their GSM users to access the higher data rates CDMA affords - relieving capacity from the GSM networks - lower cost of supplying data services Re : TXN and “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).” <<<< 1. Have you compared TXN’s Operating margin to the Q’s- TXN.........12.05% QCT.........36.3% QCL.........92.7% Tot Q........50.2% GAAP 2. The Q’s production costs are dropping significantly with- .... ZIF technology, .....the advances in silicon production methods, and .....increasing volumes. Question- Who’s volumes are significantly increasing- the Q’s or TXN’s Answer- Which market does TXN predominately support (GSM), and which are the growth markets where the “old ball game” drastically changes (3G CDMA/ WCDMA). 3. The Q by integrating more components on their mid and higher tier MSM’s will be able to raise those prices significantly, yet significantly lower the overall BOM/ assemble/ test/ procurement cost to the handset mfg (LG Securities report) 4. The Q has stated they will vigorously defend / attack all market segments. To that end they offer chipsets in the “Value Platform” which are intended to support handset pricing in the $60 to $75 range. IMO only, I have no inside info- (gg)

To: slacker711 who wrote (41367)	7/6/2004 9:57:29 AM
From: slacker711	Read Replies (2) \| Respond to of 196765

KTF loses 70,000 customers to SKT over 5 days koreaherald.co.kr Defying expectations that saw churn movement tapering off, the country's leading mobile-phone operator, SK Telecom Co., lured more than 70,000 customers away from KT Freetel Co. just five days after number portability was applied to the No. 2 carrier. According to industry figures, more than 69,000 KTF users defected to SK Telecom through July 5, while only 9,600 SK Telecom customers moved in the opposite direction. The No. 3 carrier, LG Telecom Co., is banned from attracting KTF subscribers due to a sign-up suspension in place through July 20. The churn rate, the number of subscribers who switch operators each month, is higher than the first phase of number portability, when SK Telecom lost around 6,000 customers per day to rival carriers KTF and LG Telecom. The government applied number portability first to SK Telecom in January to strengthen the market positions of the runner-up carriers. Under the asymetric application of the system, SK Telecom lost more than 1.45 million subscribers to the rival companies and saw its market share drop to just over 51.5 percent from 54.5 percent at the start of the year. SK Telecom was given a chance to win back subscribers on July 1 when number portability was applied to KTF. Number portability will be applied to LG Telecom staring next year. Most industry insiders had predicted the churn movements to slow during the second phase of number portability, with the government tightening regulations on handset subsidies and other illegal marketing activity. However, Dongbu Securities now predicts that around 300,000 KTF customers will shift to its rival by the end of the month, matching the number of SK Telecom defectors in the month of January. The government last month hit the three mobile-phone operators with sign-up bans for a combined 100 days for providing illegal subsidies to lure customers. LG Telecom, currently under suspension, is prevented from signing new subscribers until July 20, while KTF will serve its 30-day ban from July 21 to Aug. 10. SK Telecom will be hit with a 40-day suspension from Aug. 20 to Sept. 28. KTF is blaming the high churn rates on SK Telecom's illegal marketing practices. In hundreds of instances this week, the No. 1 carrier was alleged to have provided handset subsidies to customers through sales agents and telemarketing, enabling them to switch services without paying a great deal for their new mobile-phones. Hit by the sign-up suspension during the high-demand season of late August and September, SK Telecom recently launched massive marketing through print media and television that emphasizes the company's advantages in connectivity and mobile-entertainment content. The company also plans to release eight new handset models this month to lure new subscribers. The Korean Communications Commission said Monday it would strengthen its monitoring of SK Telecom's supposed illegal market practices and even consider extending the company's sign-up suspension period should the situation deteriorate. SK Telecom is the country's largest mobile operator, controlling 18.5 million of Korea's 35 million customers for a 51.5 percent market share. KTF comes in second with 11.5 million subscribers and a 32.7 percent share, and LG Telecom has 5.5 million subscribers. SK Telecom reported 9.5 trillion won in revenue and 1.9 trillion won in net income for 2003. KTF earned 407 billion won and LG Telecom reported 7.8 billion won in net income during the same period. (thkim@heraldm.com)