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: Gregg Powers who wrote (19732)	12/14/1998 6:31:00 PM
From: Joe NYC	Respond to of 152472

Gregg, What exactly is going on with QPE? Are they increasing the capacity? When is Brasil coming on-line? To be capacity constrained is good and bad. Your manufacturing operation is working at maximum profit, but you are turning away customers. Both Sprint and BAM salespeople made several attempts to dissuade me from getting QCOM products. (while they all used them for personal use). When I said I definitely want QCOM phones, they said they will have to get back to me if they can be delivered by my deadline. Joe

To: Gregg Powers who wrote (19732)	12/14/1998 7:35:00 PM
From: kech	Respond to of 152472

Gregg - Tero has a handset fetish. He tried to talk about infrastructure but just used it as the Achilles heel for Motorola. He really doesn't see any synergy between being in handsets and being in ASICS and having royalties on IPR. Just because Nokia concentrates on handset design doesn't mean this is the only way to skin a cat. It is clear to me that in this business you don't get anything from royalties alone unless those royalties are imbedded in leading edge ASICS (both Motorola and Nokia found this out the hard way). Royalties are nice but you clearly have to be a player in handsets and even geographic regions in order to maintain the value of royalties on IPR (note the current 3G debate). Where would the Q be if they just depended on royalties and didn't have to option to supply a full CDMA2000 system including infrastructure, handsets, and the works? How Tero could miss this in the current context is amazing. In turn, you don't just come up with leading edge ASICS unless you know the constraints and challenges of coming up with leading edge handsets. How do you do that? You have a capacity constrained production capability in handsets and always pursue the next challenge (PdQ phone etc.) This focusses attention on innovation and technical inputs rather than economies of scale and costs. The Koreans can do this better than the Q in San Diego. He also thinks bigger is always better (Economies of Scale). Somehow the much vaunted advantages of scale aren't helping Ericsson that much. Tom