Qualcomm Drops
By Yaser Anwar, CSC of Equity Investment Ideas
Other than JP's rating cut to neutral, QCOM is trading lower due to, Reuters reports:
Due to lower prices for the cheapest GSM handsets which cost less than $30 before local taxes, reflecting the GSM market's scale and low GSM royalties for major players such as Nokia, Ericsson and Motorola which also developed the technology.
The cheapest CDMA phones cost between $40 and $50, but analysts said these are not widely available because the top CDMA phone makers LG and Samsung focus on high-margin, pricey models sold in the United States and South Korea.
The inability to take CDMA phones abroad and swap SIM cards is also blamed for the shrinking market share.
"SIM card swapping is important in countries like India where a vacationing family does not want to pay expensive domestic roaming fees," said wireless telecoms consultant Ben Wood at Collins Consulting in Britain.
A third factor threatening CDMA is Qualcomm's policy to require its customers to render their intellectual property if it is included in a Qualcomm chip, without compensation.
That is another reason why Nokia decided to pull out of CDMA, according to sources close to the company.
In the last 15 years, Nokia has pushed ahead with its own wireless technology development, and claims to have a larger share of patents in the main wireless technology of the future WCDMA than Qualcomm. Nevertheless, Qualcomm is still demanding the same terms for its WCDMA chips as for CDMA chips.
http://www.equityinvestmentideas.blogspot.com/
Other than JP's rating cut to neutral, QCOM is trading lower due to, Reuters reports:
Due to lower prices for the cheapest GSM handsets which cost less than $30 before local taxes, reflecting the GSM market's scale and low GSM royalties for major players such as Nokia, Ericsson and Motorola which also developed the technology.
The cheapest CDMA phones cost between $40 and $50, but analysts said these are not widely available because the top CDMA phone makers LG and Samsung focus on high-margin, pricey models sold in the United States and South Korea.
The inability to take CDMA phones abroad and swap SIM cards is also blamed for the shrinking market share.
"SIM card swapping is important in countries like India where a vacationing family does not want to pay expensive domestic roaming fees," said wireless telecoms consultant Ben Wood at Collins Consulting in Britain.
A third factor threatening CDMA is Qualcomm's policy to require its customers to render their intellectual property if it is included in a Qualcomm chip, without compensation.
That is another reason why Nokia decided to pull out of CDMA, according to sources close to the company.
In the last 15 years, Nokia has pushed ahead with its own wireless technology development, and claims to have a larger share of patents in the main wireless technology of the future WCDMA than Qualcomm. Nevertheless, Qualcomm is still demanding the same terms for its WCDMA chips as for CDMA chips.
http://www.equityinvestmentideas.blogspot.com/
posted by douglas mcintyre at 11:59 AM
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