To: Dan Ross who wrote (7787 ) 1/30/1998 7:08:00 PM From: Clarksterh Respond to
OK, I'm confused. Why is everyone in a panic over the Anadigics fiasco? Having looked at their statement, given below, only a little of it looks bad for Qualcomm, and even that isn't horrendous news. In fact some of it looks good.Increased competition Since Anadigics is a major supplier to Ericsson, QPE, and Nokia (as of 1996 10K 16%, 16%, 12% respectively), increased competition among these vendors would have little impact on Anadigics. Therefore this must be a reference to competition at the component level. This is actually good for Qualcomm.a shift in demand to lower cost phones not using ANADIGICS' products Very bad for Anadigics, but not necessarily bad for Qualcomm. If they sell twice as many phones at 2/3 of the price it is actually good for Qualcomm and a disaster for Anadigics.customer delays in the ramp-up of new generation dual-band phones using our new products Ok, this might be a bad sign for Qualcomm, but I'm sure Ericsson and Nokia et al are also working on a 'new generation of dual band phones'. So, there is a good chance that it is no impact to Qualcomm at all. And even if it is an indication that Qualcomm is slow to produce the next generation, I don't see this as a catastrophy. They can still sell the current generation which is more than Motorola can say.effects of the Asian financial crisis on the wireless market They saved the worst (for Qualcomm) for last. However, the very fact that they listed this last indicates that it is the smallest of their problems. If they had listed it as the primary reason for their shortfall I would be concerned, but they did not.
