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Technology Stocks : Qualcomm Incorporated (QCOM) -- Ignore unavailable to you. Want to Upgrade?

To: brian h who wrote (6452)	12/14/1997 7:04:00 PM
From: SKIP PAUL	Read Replies (1) \| Respond to of 152472

Sk telecom raises $100 million. This company is q's best customer in Korea. biz.yahoo.com

To: brian h who wrote (6452)	12/14/1997 7:37:00 PM
From: kech	Read Replies (3) \| Respond to of 152472

Brian - Thanks for pointing out the reference to Powers' comments in the Frezza forum. I think you must have meant post #715 though by Gregg Powers. Very good appraisal of approximate $33 million penalty - before including somewhat higher demand elsewhere for Samsung phones with QCOM asics. I.e. presumably QCOM would rather have Samsung get the sales than Mot and Nokia since Samsung uses the QCOM asics. Also an interesting point about the role these cheap phones might have in the US market! PCS doesn't have the offering of a super cheap analog phone for the low end customer or "emergency" user. These Samsung phones could play this role. They are clearly not as appealing as the QCOM phones and this price differentiation could provide a valuable way for QCOM to reach the market. BRING ON the CHEAP Phones! Doug- you are absolutely right the margin for QCOM communication services is $370 million not $270 - did it in my head and missed! Some combination of your analysis with Greg's would be interesting. I would also want to add to your analysis though. Even if the won may have dropped by 50%, since much of the costs of phones are denominated in dollars the price will rise in won. This will increase the royalties from the 50% drop level. Also, as Greg Powers pointed out above, demand for Samsung and other Korean phones will increase, and I am all for their sales cutting into sales of Nokia and Motorola (hopefully less so into the high end leader which will hopefully by QCOM despite some battery life deficiencies). Also as Brian H points out this does not include the other postive events that are not widely incorporated into this years earnings forecasts. This is what Harvey White was talking about when he said this is a scratch or a dent not a wreck. See Michael Allard's post #6055 which indicates $350 million in WLL contracts in 4th quarter 1997. Many houses don't have much operating income from these orders in their models yet.