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

To: Dave who wrote (17787)	11/4/1998 7:34:00 PM
From: straight life	Read Replies (1) \| Respond to of 152472

" As I said before, I merely argued that lower ASPs are not necessarily good for a company" And argued until it was all reductio ad absurdam. OK; you said it we heard it. Next...? Personally, I'm gonna try to watch John Cuthbertson take Ben Stein's money now.

To: Dave who wrote (17787)	11/5/1998 1:09:00 AM
From: Anthony	Read Replies (1) \| Respond to of 152472

Dave: I just want to comment that not only prices of components are coming down due to more players but the level of integration in term of number of chips being used to build the phone is also will go down. Given Qcom track record such as the fifth generation MSM on schedule I am not surprise that they are already working on integrating more chipsets into one hence reducing the cost further. True ASPs is declining but cost cutting will also move down faster. I think the gross margin going forward will be up and not down like everyone is predicting. Remember their first two years of manufacturing phones had been quite a painful learning curve and I think this quarter is the marking point of a new beginning. Proof was that gross profit margin all the sudden higher than everyone is expected while asic chips sale margin is declining (common sense given all the fuss in Korea, I think Qcom had no choice but to please their customer by lower their asics price). So you see the number in this quarter is critical to show that Qcom can play in the big league(means they can mass produce phone while making profit with declining ASPs).

To: Dave who wrote (17787)	11/5/1998 10:00:00 AM
From: engineer	Read Replies (2) \| Respond to of 152472

I made those numbers up as I typed, but I went back and found the ASP from 1994, it was as high as $875 for the new do all pentium chip. Didn't last long....like 3-4 weeks. but those numbers were close. MSM is the Mobile Station Modem chip used in the phone. It is the heart of the phone. It has a cpu (was 80186...now going to ARM), a DSP processor which is homegrown and is much more power efficient and smaller than any on the market, and a complete CDMA digital processing engine for transmit and recive. Newer versions of the chip also include things like internal Audio codecs, more I/O controllers built in, a much more dense CDMa processing engine which improved the CDMA signal to noise (more rake recievers) and much lower power standby modes. The MSM3000 is the latest of these....5th generation.