Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Maurice Winn who wrote (41376)	6/30/2004 6:02:43 PM
From: Jim Mullens	Respond to of 196769

Clark, Maurice, Re: Unicom / Gsm1x 1. “All the benefits you stated accrue to the service provider. Why shouldn't they subsidize the phones, not Q?” <<<<<<<<<< It’s a Win/Win for all. Unicom saves a bundle on GSM infrastructure upgrade costs and can gradually relieve capacity from their GSM network as GSM1x handsets are sold, shifting it to the CDMA side. Unicom can now sell BREW and other high speed data services to their GSM customers at higher speeds and lower costs comparable to what GSM provides. The GSM subs should be happy with the new data services. The CDMA subs get better coverage in the outlying areas with GSM. 2. “Because of the integration of the CDMA and GSM technology, Texas Instruments would lose any advantage they have over QUALCOMM in the chip production. GSM must be easy to do.”<<<< Nokia, also loses its advantage- a. as their volumes stagnate / diminish with the onset of 3G and the competitive changes that come with it. b. One of NOK’s main advantages was it’s ability to exert extreme pressure (price and supply priority) on its component suppliers. This advantage is diminished as more and more components are integrated on the Q’s baseband chipset. (remember the NOK CDMA head that ridiculed the Q’s integration strategy) Integration helps the Q to increase their chipset pricing (maintain / or mitigate the decline for the lower tiers) as the handset manufacturer benefits from- b.1. reduced component costs b.2. reduced procurement costs associated with less components to procure b.3 less assembly and test effort. IOW, as the QCOM MSM get more complex, the job of the handset manufactures is simplified.