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To: Candle stick who wrote (8325)	2/10/1998 12:25:00 PM
From: T.R.	Respond to of 152472

*OFF TOPIC** Candle... If you have an "e-mail" address you don't mind sharing with me drop me a line... I have a stock which I think you might find interesting. T.R.

To: Candle stick who wrote (8325)	2/10/1998 1:19:00 PM
From: Gregg Powers	Read Replies (1) \| Respond to of 152472

Candle stick: you need to do some research, not just parrot Forbes. Although the won declined by roughly 80% from September 30st to December 31st, unit volume increased dramatically during the Christmas selling season--so, on a prima facia basis, the impact on royalties should only be a few million dollars sequentially. More subtlely, and this is why reporters are reporters and people with agendas can use them, Korean phones sales OUTSIDE of Korea are denominated principally in dollars--so, to the extent that Samsung and LG shift sales to foreign markets, the royalty impact due to the won's decline will be mitigated. The lower won could allow the Koreans to sell their phones for less, but it's certaintly not a dollar-for-dollar relationship. Imported components (like QC ASICs and Japanese lithium ion batteries) all have substantially increased in price. Also, Korean phone prices were much higher in the domestic market than they have been in the international area--some would argue that prior to the Asian crisis, the Koreans were using their home market profits to subsidize their marketshare ambitions overseas. With the domestic (i.e. Korean market) slowing down, Samsung et al will need to earn more dollars on their foreign sales, which should mitigate against dumping. Clearly the Forbes reporter was sourcing his quote from a short attempting to spin the Korean situation in the most negative light. Too bad.