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

To: djane who wrote (23952)	3/10/1999 4:17:00 AM
From: Maurice Winn	Respond to of 152472

//Qualcomm hasn't completely stalled because of this standards battle. It has two new product offerings this year--a thin cell phone and something called the pdQ smartphone (a cell phone with a built-in Palm Pilot organizer). But these products have a lot of competition, including the introduction of new Nokia CDMA phones and a CDMA version of Motorola's popular StarTAC phone. And even if Qualcomm's new offerings are hits, it'll still lag behind leading handset manufacturer Nokia (see chart). As a result, warns Michael Ching, a wireless equipment analyst at Merrill Lynch, pricing pressure could slow Qualcomm's revenue growth to 16% this year.// Michael Ching seems a bit out of date! And the article seems to see Q! in trouble. Just amazing. From reading this, one would think Q! is in trouble and nearly stalled, but not completely. I bet the people working at Q! don't feel they are 'stalled'. Has Michael not heard of the very, very strong quarter, 24 hr, 7 day production lines with increased margins, tsunami of cdmaOne. It won't stop in 3 weeks time! The article goes on to say: //Analysts say that such a deal makes sense, but that both sides may need to compromise about who owns which parts of the technology. Compromise, though, has never been Jacobs' strong suit. After battling for acceptance for years, striking a deal with the enemy can't be easy. In late February a Qualcomm spokeswoman insisted to FORTUNE that the company's position hasn't budged. That stubbornness could be Qualcomm's Achilles' heel. Key players like Japan's NTT are siding with Ericsson. If it doesn't change its tune, Qualcomm may end up with only its lawyers to keep it company.// Are they quite mad? Q! has got some company already in Japan and if NTT keeps siding with Ericy, then they'll be the only one in Japan not selling cdmaOne, cdma2000 or WWeb. If NTT doesn't change their tune, it might end up with only 20m obsolete PHS handsets to keep it company. Compromise wasn't the car dealer's strong suit either - they just go on wanting the sticker price for their cars! When will everyone 'get it' that ALL companies have in common the wish to reduce Q! royalties so ALL companies, governments and subscribers will have that in common and it will seem that it is Q! versus everyone else in the world. Because that is what the situation is. ALL will use what leverage they have to get Q! to cut their expectations of royalties. Governments will try to with-hold spectrum from them, Ericy will try to hold the line in court and in license negotiations, NTT, Nokia, Vodafone, Motorola, Lucent, Nortel and all the rest will feign support of VW40 to frighten Q! into thinking that they won't get any business. China will postpone or cancel cdmaOne rollout. All this to save a derisory 15% royalty fee which they have to pay to use GSM anyway which is a scungy, inefficient, expensive, obsolete technology. Go Irwin! He must be having a LOT of fun. Mqurice