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Strategies & Market Trends : Gorilla and King Portfolio candidates - Moderated -- Ignore unavailable to you. Want to Upgrade?

To: Mike Buckley who wrote (1010)	7/17/2004 12:22:24 PM
From: Apollo	Read Replies (3) \| Respond to of 2955

but I still don't have any reason to think there will be a Gorilla of wireless communications... When carriers/providers move to 3G, WCDMA or CDMA 3G(EV, DO, etc), Qcom will earn royalties on each handset, and on infrastructure equipment; and will also make and sell a substantial portion of the chips included therein. Qcom's patents represent unique intellectual property, for which they are paid. The abundance of licenses speak to this. With Verizon, Sprint, Samsung, the Chinese handset manufacturers, etc, etc, Qcom seems to have a strong value chain. 3G goes thru Qcom, as I understand it. Qcom gets paid for the right to use CDMA and its variants, "owns" this architecture....here, it is a gorilla, I believe. Qcom and competitors can make the CDMA chips, and here, Qcom may be a royalty play. Of course, you understand all this, much better than I do. So, of course, you are referring to something I must not understand, or have forgotten, or which is not of practical importance. What are you thinking, and what am I missing? Apollo PS: the announced split is very nice, from my point of view, and speaks to Qcom's strengths, in that there aren't many other (any other?) tech companies announcing splits in recent months. This, by itself, signals strength, if one believes in management's competence. A