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

To: Stock Farmer who wrote (76871)	5/4/2008 5:49:32 PM
From: Art Bechhoefer	Read Replies (1) \| Respond to of 197255

aside from interest, Nokia doesn't have much to lose Yes they do. They have demonstrated over the past year that they can't compete with companies such as LG and Samsung, which keep increasing market share. Now if Nokia ends up having to pay the same royalty rates as LG and Samsung, Nokia will face a profit squeeze, and they know it. That, in my opinion, is why Nokia is fighting so hard to get even just a small comparative advantage over its real competitors. They just can't compete with efficient operations like LG, Samsung, and of course several new Chinese and Taiwan companies all looking for a piece of the pie. Nokia is experiencing the same kind of ossification process that other dominant companies experience after being in the cat bird seat too long. Consider how GM lost its competitive position to Japanese companies, especially Toyota, beginning about 1980, and is still losing market share. Or, look at Kodak, which simply couldn't accept the demise of conventional photography and finally entered the digital camera and printer market only after other firms, such as Canon, Nikon, Epson, Sony, and Hewlett Packard had established strong positions in the market. And worse, Kodak refused to invest in flash memory, which is, in effect, the digital form of film--until it was too late. Nokia's problem is, like GM and Kodak, that they tried too long to preserve a declining market for 2G handsets--doing everything they could to prolong the use of GSM, while deterring the adoption of WCDMA, for which other firms owned the key patents. The delays that Nokia is forcing on the resolution of matters involving IDCC and QCOM are easily explained by their effort to preserve an obsolescent system for which they had a preponderance of intellectual property. Art