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

To: scratchmyback who wrote (59739)	2/4/2007 10:16:26 PM
From: masa	Respond to of 197351

"Motorola hasn't sold that many entry level phones over there despite being the winner of GSMA's entry level phone trophy for two times" Winning them has actually been negative for MOT share price. That is, to my mind, the reason they did not participate this time.

To: scratchmyback who wrote (59739)	2/4/2007 10:17:31 PM
From: slacker711	Read Replies (1) \| Respond to of 197351

The winner gets the right to sell phones for a certain price, but the operators are not obliged to buy a single one. They may buy some phones if they need them, but they can as well buy other phones for other price, if that serves them better. And I guess that's what has happened in the emerging market, Motorola hasn't sold that many entry level phones over there despite being the winner of GSMA's entry level phone trophy for two times. No doubt that a large contract order would be nice, but I have been looking at this award in a bit of a larger context. 1) It would validate Qualcomm as the low-cost leader. Nokia didnt participate because they have that option, but how about Motorola? I think it is fairly clear that Freescale didnt have a chipset that could provide MOT with a handset capable of meeting the cost/specs. Sony Ericsson may have participated and lost. Where is Broadcom, or TI, or any of the other half-dozen merchant chipset vendors? 2) Motorola's ULC handset win with the GSMA didnt create the market but I think it did accelerate the volumes. Yes, Nokia is still doing very well selling ~$70 handsets, but while Motorola isnt making any money, they are selling a huge number of low cost handsets whether they are the GSMA model or not. I see the same effect in 3G. 3G handsets have barely made headway within the European prepay market. We are finally getting to price points that are going to change that fact. Slacker