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

To: Carter Patterson who wrote (7387)	1/21/1998 9:32:00 AM
From: Ramsey Su	Read Replies (1) \| Respond to of 152472

My take on the Korean issue. First the bad part, it looks like they were hoping to sell handsets into that market. Now with Samsung and others being more competitive and the market may not be growing as fast, this may not materialize. However, as far as handsets are concerned, QCOM has minimal presence in Korea now and should have little or no impact. The good news is Koreans will be exporting handsets, using QCOM ASICs and paying royalty, in currencies other than the WON. It is going to be very difficult for MOT to bring their first generation phones to the market at prices that can compete with the Koreans. The net effect of Korea should be viewed as positive for QCOM and CDMA. Ramsey

To: Carter Patterson who wrote (7387)	1/21/1998 9:50:00 AM
From: Harvey Rosenkrantz	Read Replies (1) \| Respond to of 152472

To me there were a few interesting points: Handsets are capacity constrained at a production leavel approaching 600,000 units per month and they are aiming for higher produciton. This means they can sell all they make and more. With all the new systems going on stream around the world the demand for handsets will go up exponentially. It will become physically impossible for one company to supply all of that demand, Korea, while important will become less important over time. If QCOM does not supply the handset, they will supply most of the asics for the (other manufacturers) chipsets. This is a Win-Win situation. As long as cdma grows,the mighty Q will prosper. The Korean devauation has been discussed previously in this thread. It is a two edged sword. The price of QCOM handsets goes up in WON, but the price of Samsung, LG etc made handsets goes down in DOLLARS making them (cdma) more competitive in the worldwide market vs other modalities. Therefore total use of cdma goes up. Since QCOM sell the asics to the Korean manufacturers, the increased volume of asics sales will mitigate the decreased volume of handset sales in Korea. Since the current demand for handsets exceeds supply there will be no problem selling the handsets in other markets while the Korean economy recovers. The move into Mexico is interesting and exciting, it is potentially a huge market. I'm surprised the analysts did not pursue it. Does anyone know who the unamed partner is? The Vodaphone trials appear to be the first step toward the next generation technology, capable of integrating an existing digital system into a more efficient one. It would be great if they could do the same thing with the Japanese systems (PHS etc.) This might be the way to convince NTT to go to an IS-95 compatible system.