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

To: Eric L who wrote (45726)	5/6/2005 12:10:22 AM
From: kech	Respond to of 196989

Follow-up jogged memory from Eric's post: Sanjay also spent a lot of time on QCT margins compared to competitors over time. He was trying to make two points: 1) QCT's margins change a lot from investment phase to harvest phase and the low recent margins represent an investment phase but that margins would rise as the harvest phase from WCDMA and EVDOrA kicked in. 2) Qualcomm's margins were still higher than many in semiconductor area except Intel. He also showed the operating margins in 3G of unnamed direct competitors and showed that the R&D costs were high and that one really needed 20% market share in order to justify these costs. It was from a point 2 that he was implying there would be a shakeout in the 3G market and that he hoped Qualcomm would pick up some of that share. I.e. the easiest if one of these, like Motorola, would start to buy from Qualcomm.