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


To: marginmike who wrote (29813)5/11/1999 4:59:00 PM
From: Ruffian  Respond to of 152472
 
Our market cap is now 7.8 billion, not a good day <gg> eom.



To: marginmike who wrote (29813)5/11/1999 7:27:00 PM
From: DanD  Read Replies (2) | Respond to of 152472
 
Well the one thing I remember from economics is marginal rate of return. The place where supply and demand curves cross. Increasing demand by increasing supply and lowering the price may actually increase the marginal return on the dollar.
If demand is significant and the phone is very popular the margins would make the profit higher than if the phone were expensive and less available.
Maybe the Q is looking to have regain some of the so called market share it lost to the Nokias and MOT's over the last year or two in the handset world.
The competition could also be a reason. Keeping the price down is another competitive edge.
Yet another is just growing the CDMA base. This is the first phone to market in the US that integrates the Internet. Getting that into a lot of hands may be the impetous to grow CDMA demand in general
I think the pricing of this product is not nearly as simple as it might be for a MOT or a Nokia.

Dan D