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

To: Caxton Rhodes who wrote (8650)	2/19/1998 9:35:00 AM
From: Greg B.	Respond to of 152472

Caxton, Thanks for other post. Korea events are yesterday news, IMO. Won devalued and affects royalty stream. Cancelled and deferred orders, coupled with higher cost structure, will impact this and subsequent quarter's earnings. However I find the explanation that San Diego politics helped orchestrate the move of ALL handset production to QPE while blaming Asian flu quite palatable - and intelligent to boot. (Not everyone did it intelligently - ANAD) However, what's interesting is the escalated battle between ERICY and QC. Correct me if I'm wrong, but why would Mexico want to take a step backwards to GSM, when the next generation handsets will eventually be compatible with CDMA/W-CDMA? A Mexican businessman travels to Europe and place a call over W-CDMA/GSM network to anywhere. (Separately and BTW, does the competition really think the GSM operators will economically benefit from limiting the one "CDMA band" to only a local loop?) Since the operators serve the consumers, and face stiff competitive pressures in the future, they will consider the consequences of their technology implementations. It seems that success in the standards game depends on compatible interfaces. The winner is the one with the 1. best technology 2. key compatible interfaces and 3. the best economic model (e.g., cost vs. value provided). GSM and CDMA operators understand their business. Neither QCOM or ERICY can hoodwink operators during this standards war. But the momentum is on QCOM's side. Although smaller, QCOM is on the road to emerge as a world class partner to telecom operators around the world. Was thinking how amusing it was how North American GSM consortium responded QCOM's series of announcements on Tuesday. Obviously a last ditch effort to stall CDMA plans for Mexico. In thinking about it in the above context: besides coming a bit late (didn't MOT recently sign CDMA equipment contract with Mexico operators?), the release almost does not even warrant a response from CDMA camp. Cheers, Greg