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

To: DaveMG who wrote (27891)	4/21/1999 11:38:00 AM
From: Valueman	Respond to of 152472

It sounded like demand was way high still for the QCP-2700, 1820, and 1920(contracts to fill?). Like any company should, I guess they will feed that demand as long as it's there. They have the manufacturing on that line down pat, and margins are great. I agree with you though, I would think it would be in their best interest to crank up the ThinPhone production straight away.

To: DaveMG who wrote (27891)	4/21/1999 11:39:00 AM
From: JGoren	Respond to of 152472

Management said it was because of the popularity of those phones. Go to the local Sprint store and see what sells. They are reaching peak efficiency on those phones (margins), they are selling well, and their prices can be kept low so they compete well against handsets from other manufacturers. I don't recall exactly how it was put, but I think they said they would continue to produce through the third quarter. That indicates to me that the company may cease production on some or all at the end of the third quarter, i.e., June 30. I think it will depend on the success of the new phones as to the mix of phones produced. If there is very heavy demand for the Thin Phone, then obviously the company will switch as much production as possible to it because it has high margins and is easier to produce. One problem the company is having is that it has to spend a lot of time and money "dumbing up" the current phones due to the shortage in some components. The Thin Phone has fewer parts.