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Technology Stocks : THREE FIVE SYSTEM (TFS) - up from here? -- Ignore unavailable to you. Want to Upgrade?

To: Noblesse Oblige who wrote (1582)	5/31/1998 8:39:00 AM
From: michael c. dodge	Read Replies (1) \| Respond to of 3247

A couple of other things...... 1. Under its traditional structure, MOT's (i) paging, (ii) cellular, and (iii) two-way radio businesses operate as distinct groups, each with its own infrastructure and HANDSET divisions. These groups compete with each other for resources within Motorola, and compete in the marketplace where their services and products overlap. (This is the infamous "warring tribes" culture within MOT, which the new CEO, Christopher Galvin, is trying to change.) As reported in April, a proposed restructuring of MOT would combine the similar functions of these three separate sectors into their own divisions.....there would be one industrial division that sold cellular, paging and two-way radio infrastructure to corporate and national clients, and a separate division for all paging, cellular, and two-way radio HANDSETS. If this is actually occurring, and if TFS's anticipated production orders are caught up in this, we could lose orders, gain orders, or be unaffected other than pushbacks. Does anyone on the thread know if this is what is happening ??? 2. MOT was late in CDMA. Wanted to build its own chipsets, rather than pay Qualcomm CDMA royalties. Gained that long-term advantage, but lost first-to-market share, and has not yet made any penetration in CDMA handsets. Meanwhile, Samsung owns Korea (largest CDMA system in place) and is out of the gate strong with a current U.S. sales program; Qualcomm earlier had a monopoly in partnership with Sony (now each on its own, too), and Nokia, Ericsson, and several lesser lights are selling CDMA handsets....all doing better than MOT, according to "analysts". MOT just now beginning to ship small quantities of CDMA handsets. If TFS displays are used in the MOT CDMA handsets, a delay may be coming from MOT's lateness in getting its chipsets ready. Anyone know about that ??? 3. Demand for high-end phones by Nokia and Ericsson in CHINA is far outstripping supply. If we are building in China to supply MOT there, we are creating additional customer-concentration risk, along with the sales opportunity. If we are building to supply Nokia or Ericsson, or all three, we are solving a problem and winning at the same time. If we are building without firm orders to follow, we are fools (I do not think this is the case, but cannot find anything in my TFS notes to clarify this.) Anyone know about this ??? 4. There is a move afoot to develop a software driven handset, such that only one platform (handset type) would be needed....all the hundreds of permutations would be software driven. Nothing is going to happen for a couple of years on this. If it occurs, we will be SOL, IMO. The display would become a commodity item. Anyone know if this is moving ??? Any lurkers who know an accurate answer to any of the above, please put something up here. Put it up under a new name, if need be. All take and no give is inappropriate. Thanks. mcd