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

To: bananawind who wrote (17757)	11/4/1998 4:27:00 PM
From: bananawind	Read Replies (2) \| Respond to of 152472

MS/QCOM - Looks like more than rumor... • Qualcomm Inc. and Microsoft Corp. plan a joint venture to create a network operations center for connecting wireless data users to corporate IT networks, Wireless Week has learned. Qualcomm Chairman Irwin Jacobs confirmed the plan's general outlines but would not discuss details pending a news conference Tuesday in San Diego. "It's fair to say that yes, it would provide services for wireless as well as wired users," Jacobs said. "But the interesting growth, we think, will be in wireless." Other sources say John Major, president of Qualcomm's Wireless Infrastructure Division, will head the new venture, to run separately from the parent company. A number of Qualcomm employees are expected to join him. There are unconfirmed reports the companies also may develop a wireless handset using Microsoft's Windows CE platform for handheld devices. Such a plan could raise questions about Qualcomm's licensing of Palm Computing's rival platform, already being used in the pdQ phone unveiled in September. News of the NOC venture follows Microsoft's announcement at last month's Wireless I.T. '98 Expo that it is developing a microbrowser for "thin-client" devices such as pagers and data-capable handsets and could precede more announcements concerning wireless. "This is just the second of four or five 'rolling thunder' moves that Microsoft plans to make" in wireless data, one source said. From: wirelessweek.com

To: bananawind who wrote (17757)	11/4/1998 5:21:00 PM
From: Dave	Respond to of 152472

Off Topic Jim, What I have been trying to argue is that lower ASPs are not necessarily good for all. Lower ASPs have hurt uP manufacturers, Computer manufacturers (Compaq, Packard Bell, AST Research [remember them?]) and have hurt D-RAM manfacturers. Of course, for the last example, it wasn't a gradual reduction, but a mammoth one. That is so true about Intel. They are still able to lower prices, compete and make a profit because of many things including excellent management and being a low cost producer. However, since March/April of 1997, Intel has been in a trading range of high 60s to low 90s and their earnings haven't grown. In order for a stock to appreciate, it must either have growing earnings or, in the case of Internet Stocks <g>, the appearance of huge future earnings. If you lurk on the Intel thread, Intel has segmented the market in order to raise ASP. Remember, it costs money to produce a chip, but Intel, like all companies, has fixed costs too! Look at their competition such as AMD, Cyrix/NSM, Motorola, IBM, Integrated Device Technology. Some left the uP business and others are unprofitable. In those examples, lower ASP have not helped at all. With your analogy, are you trying to compare Qualcomm to Intel? Would you consider Qualcomm a low cost producer for handsets? I understand you, as I, have made an analogy, but lower ASPs are not necessarily good for companies and/or their stockholders. dave