Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: J.B.C. who wrote (17548)	11/2/1998 2:33:00 PM
From: Douglas V. Fant	Respond to of 152472

JBC, QCOM's earnings out tomorrow right? Sincerely, Doug F.

To: J.B.C. who wrote (17548)	11/2/1998 2:33:00 PM
From: tero kuittinen	Read Replies (4) \| Respond to of 152472

John, it's in Nokia's interest to give their GSM/TDMA models an edge - and they have that by virtue of getting into market 12 months before the CDMA version. Moreover, the 100 dollar 51xx will bring a new standard of quality to this price segment in GSM/TDMA market - Nokia's 61xx CDMA phone will be priced above 200 dollars. I think Nokia is doing well in giving the TDMA/GSM models the priority while still getting a slice of the CDMA market. Not an issue of intentionally making inferior handsets - just a question of allocating resources into the segments where you are strongest. Nokia could not have brought out a dozen different 61xx variants into TDMA market if it had poured its resources into the CDMA race. If we for one minute disregard the emotional standard issues the bottom line for an investor is this: margins in CDMA handsets will be under intense pressure as the Koreans and Japanese conquer the world market. In GSM and TDMA the Asian companies have been sent home packing by Nokia. Profit growth over sales growth is what an average investor needs. Whatever market these Asian consumer giants touch turns to dust - memory chips, tv's, stereos, CDMA phones. The victory of 100% annual growth in CDMA handsets will be a hollow one if it drags down the profit margins. ATT's current subscriber expansion is limited by Nokia's production volume - they can and will grow faster as the production expands. From a stockholder's POW this is the place to be... when the manufacturer can sell everything it makes. Somebody said that it is all about marketing: if that would be the case a certain dead horse would still rule the roost in the handset biz. Did that 100 million dollar "Wings" campaign fool the canny US consumers? No. Nokia has had considerable problems because of lack of brand identity in USA - the fact that they are doing what they are doing shows that word of mouth is still the most important weapon in market share battle. The point about Lucent, Philips, Mitsubishi etc was this: profitless phone manufacturing is so expensive that even a small handset division can and has wiped out the profit growth of a huge, diversified company like Philips. GSM and TDMA are one of the last havens for Western tech companies seeking multi-billion dollar profits in manufacturing. I would buy Qcom tomorrow if it spun off the phone division. But instead they are intending to go to the mat with the Asians. For this they would need a substantial, obvious technological edge in phone specs - the one thing that I've been waiting in vain to materialize. Tero