Comments on: Update Qualcomm (QCOM) http://jubakpicks.com/2009/11/18/update-qualcomm-qcom-2/ Fri, 12 Mar 2010 16:13:40 -0500 http://wordpress.org/?v=2.9.2 hourly 1 By: blw2002 http://jubakpicks.com/2009/11/18/update-qualcomm-qcom-2/comment-page-1/#comment-1875 blw2002 Thu, 19 Nov 2009 13:58:46 +0000 http://jubakpicks.com/?p=2225#comment-1875 We at Seeking Alpha think your blog is great and would love to have you join our team. Please contact me at contributors@seekingalpha.com. Thanks, Becci About Us Seeking Alpha (www.seekingalpha.com) is the premier financial website for actionable stock market opinion and analysis. Handpicked from the world's top blogs, money managers, financial experts and investment newsletters, Seeking Alpha publishes more than 250 articles daily. Seeking Alpha gives a voice to over 2500 contributors, providing access to the nation's most savvy and inquisitive investors. The award-winning site is the only free, online source for over 3,000 companies' quarterly earnings call transcripts including all of the Russell 3000 Index. Seeking Alpha has 40 million page views each month and combined with their distribution partners (Yahoo Finance, Google Finance, Reuters, Bnet, Etrade and others) has a total reach of 50 million unique monthly readers. Seeking Alpha was named the Most Informative Website by Kiplinger's Magazine and received Forbes Magazine's 'Best of the Web' Award. We at Seeking Alpha think your blog is great and would love to have you join our team. Please contact me at contributors@seekingalpha.com.

Thanks,
Becci

About Us
Seeking Alpha (www.seekingalpha.com) is the premier financial website for actionable stock market opinion and analysis. Handpicked from the world’s top blogs, money managers, financial experts and investment newsletters, Seeking Alpha publishes more than 250 articles daily. Seeking Alpha gives a voice to over 2500 contributors, providing access to the nation’s most savvy and inquisitive investors. The award-winning site is the only free, online source for over 3,000 companies’ quarterly earnings call transcripts including all of the Russell 3000 Index. Seeking Alpha has 40 million page views each month and combined with their distribution partners (Yahoo Finance, Google Finance, Reuters, Bnet, Etrade and others) has a total reach of 50 million unique monthly readers. Seeking Alpha was named the Most Informative Website by Kiplinger’s Magazine and received Forbes Magazine’s ‘Best of the Web’ Award.

]]> By: boettger http://jubakpicks.com/2009/11/18/update-qualcomm-qcom-2/comment-page-1/#comment-1872 boettger Thu, 19 Nov 2009 07:33:15 +0000 http://jubakpicks.com/?p=2225#comment-1872 The amount of misleading information here is unfortunate. To wit: TD-LTE is not the "home-grown" China standard; TD-SCDMA is. And it's not at all clear if/when China (specifically, China Mobile only) would deploy TD-LTE. The overwhelming majority of China Mobile's subscribers utilize GSM, not TD-SCDMA. As a fraction of China Mobile's subscriber base, the number of TD-SCDMA subscribers is utterly irrelevant. Thus, even if we assume that the TD-SCDMA subscribers will be converted to TD-LTE, the net contribution to Qualcomm's revenue is a rounding error. While Qualcomm likely supplies chips for substantially all cdma2000 handsets in China, the number of cdma2000 users in China is dwarfed by the number of GSM users -- by an order of magnitude at least. Qualcomm does not supply GSM-only chips, and the company only has a portion of the GSM-WCDMA market. The only operator in China that utilizes WCDMA is China Unicom -- the weakest of the three. Even if Qualcomm derives 23% of its revenue "from China", it is a virtual certainty that a huge portion of that revenue is derived from re-exported handsets -- i.e., not the local market. This is precisely the reason that Korea is Qualcomm's "largest market": Because Korean manufacturers supply the bulk of the world's cdma2000 handsets and a large portion of the WCDMA handsets. So if the takeaway here is meant to be that Qualcomm is hitching its wagon to the China rocket... I call bunk. The amount of misleading information here is unfortunate. To wit:

TD-LTE is not the “home-grown” China standard; TD-SCDMA is. And it’s not at all clear if/when China (specifically, China Mobile only) would deploy TD-LTE.

The overwhelming majority of China Mobile’s subscribers utilize GSM, not TD-SCDMA. As a fraction of China Mobile’s subscriber base, the number of TD-SCDMA subscribers is utterly irrelevant. Thus, even if we assume that the TD-SCDMA subscribers will be converted to TD-LTE, the net contribution to Qualcomm’s revenue is a rounding error.

While Qualcomm likely supplies chips for substantially all cdma2000 handsets in China, the number of cdma2000 users in China is dwarfed by the number of GSM users — by an order of magnitude at least. Qualcomm does not supply GSM-only chips, and the company only has a portion of the GSM-WCDMA market. The only operator in China that utilizes WCDMA is China Unicom — the weakest of the three.

Even if Qualcomm derives 23% of its revenue “from China”, it is a virtual certainty that a huge portion of that revenue is derived from re-exported handsets — i.e., not the local market. This is precisely the reason that Korea is Qualcomm’s “largest market”: Because Korean manufacturers supply the bulk of the world’s cdma2000 handsets and a large portion of the WCDMA handsets.

So if the takeaway here is meant to be that Qualcomm is hitching its wagon to the China rocket… I call bunk.

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