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

To: Maurice Winn who wrote (17200)	10/26/1998 4:53:00 PM
From: Bon Scott	Read Replies (2) \| Respond to of 152472

Profit is the name of the game and for all we know, the terms of the contract were poor. Companies do sell things too cheaply at times. So far, QUALCOMM has not shown any inclination towards doing that, though they are heading in that direction with the underpriced Globalstar handsets. But competitive pressure can lead people to accept excessively low prices. So we don't have the full story yet. **************************** Maurice, I have to disagree with your theory above when applied to US West. Favorable terms of a contract ($$) would hardly be a reason for a company like US West to choose QCOM over others such as LU or MOT. US West would stand to lose a lot more $$ than that in revenue if the base stations were unreliable or had poor voice quality. I would believe that favorable terms would be lower on the criteria list when purchasing hardware. There would have to have been some kind of clear advantage (reliability, voice quality, size, $/channel...etc.) for US West to have chosen QCOM. However, you theory hold a lot of water if we were talking about a developing nation that just starting basic cellular phone coverage and is leap-frogging straight to digital cellular.

To: Maurice Winn who wrote (17200)	10/26/1998 11:50:00 PM
From: SKIP PAUL	Read Replies (1) \| Respond to of 152472

Maurice, you are right on how handsomely Korea has benefited from being the pioneer in CDMA technology. 10-27-98 IT Sector Posts $8.6 Billion in Surplus Korea's telecommunications equipment and semiconductor makers have shipped $21.56 billion worth of products overseas in the first nine months of this year, or 72.3 percent of their annual $29.8-billion target, the Ministry of Information and Communication said yesterday. Their imports stood at $12.96 billion, posting a sectoral trade surplus of $8.6 billion, the ministry said in a report on business trends in the information and technology (IT) industry. While exports slowed by 5.9 percent from last year, imports plunged 20.9 percent during the nine-month period due to flagging domestic demand, the report said. Among export products, satellite broadcast receiving equipment showed strong growth with $50 million in exports, an increase of 82.7 percent from last year. (NIS) The ministry attributed the increase to the start of digital TV broadcasting in Britain last month and the planned service launch in the United States next month. Exports of mobile phone handsets also showed robust growth with $980 million, up 62.9 percent from $600 million last year. The exports focused on the U.S. and Hong Kong markets, which adopted code division multiple access (CDMA) technology. Korea was the first country in the world to commercialize CDMA technology in mobile handsets. Exports of personal computers rose 58.3 percent to $180 million, boosted by a growth in shipments under original equipment manufacture (OEM) bases. Memory chips, a key export item in the IT industry, decreased 0.3 percent to $4.17 billion from the corresponding period of last year. By region, Asia, which contains such major markets as Japan, China and Hong Kong, remained the largest export market with $10.16 billion, or 47.1 percent of the total export volume. The U.S. market was second with $6.26 billion or 29 percent, followed by Europe, which assumes 18.8 percent or $4.06 billion, the report showed.