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

To: waitwatchwander who wrote (17883)	11/5/1998 10:56:00 PM
From: Clarksterh	Read Replies (2) \| Respond to of 152472

Comments on the Microsoft JV: 1) Although I am not a particular fan of Microsoft, it is unlikely that Qualcomm has much to lose here. If Qualcomm had some software product that could be incorporated into an existing MS product I would worry a lot. I take it for granted that without government intervention MS would crush Qualcomm in such a situation. But Qualcomm's main business at this point is hardware and IP, and MS does not have a history of appropriating such technology. See point 2. 2) Even if MS wanted to appropriate Qualcomm's hardware technology, it is much harder to use such tactics in the hardware industry than it is in the software industry. One of the main reasons is that until recently it was very difficult to get patents for software. Obviously the same is not as true in hardware. 3) The only real risk for Qualcomm, and it is probably a minor one, is that MS will try to dominate the JV and direct it towards MS's goals instead of Qualcomm's. For instance, they could insist that the software use MS proprietary standards instead of open standards and thus slow the JV sales while allowing MS to sell more products. The leverage Qualcomm has to prevent such a future is the continuing work with other vendors and products such as the Palm Pilot. All JMO. Any comments? Clark PS NF - you talk about the JV as if Qualcomm software were going to go to it. I don't think the JV is going to takeover any product lines, although certain expertise may be given to it as a starting point. After all, does the JV really need Eudora? Again, JMO.