I am surprised by the inactivity on this board. Have we all given up on Ericy due to the restructuring problems?Could someone please remind me why I should hold on to this company? I originally bought in because I thought the company was and would be a world leader in wireless technology. When they settled their dispute with Qualcom, I still held on to my shares. I did finally pick up some Q shares, thank goodness, but am wondering what I should do with Ericy.Input would be greatly appreciated.
Having similar thoughts. Is Ericsson going anywhere or is best to switch to Nokia on the belief that they have the handset market sown up. Also have owned Qualcomm for some time and this year has been stellar and puts Ericsson to shame. Thoughts?
I too have owned QCOM for some time (3+ years).My thoughts... Hot money CHASES hot stocks, smart money finds companies that will be well positioned in tomorrow's world. That strategy has paid off in spades with Qualcomm. There were many times that I had the same feelings (should I move on?)but always came back to the question of whether I thought it was a quality company that would be competitive in the future. Now I'm wishing I had bought more QCOM back then. Bottom line: I am not ready to write off ERICY. If you no longer believe in the future of the company, then by all means, move on.
I have read very recently that AT&T appears to be shifting some of its infrastructure away from Ericsson to Nortel and Lucent. This could indicate a problem as Ericsson makes most of its money in the infrastructure side of the wireless business. Its market share in handsets doesn't concern me as much because that isn't as profitable. But if the infrastructure side of the business begins to slide, I would be concerned about the long-term prospects of this company.
"But if the infrastructure side of the business begins to slide, I would be concerned about the long-term prospects of this company."I agree totally. Where did you read this info ?? The only news I've seen is related to ERCY equipment delivery problems not an infrastructure problem.This post from InfoBeat. Shares in ERICSSON TELEPHONE were lower on Monday after its most important U.S. customer, AT&T Corp, signed contracts with Lucent Technologies Inc and Nortel Networks Corp. Ericsson, which had problems delivering equipment to AT&T earlier this year, will now see its share of AT&T telecoms equipment purchases fall to one-third from one-half. "We had problems last spring. This is nothing to sweep under the rug. It may have hurt us," Erik Osterberg, spokesman for Ericsson Operator, told Reuters. He said in future AT&T would increase its orders from Ericsson's competitors. Nortel had not supplied AT&T with equipment in the past. (Reuters 09:08 AM ET 08/30/99) For the full text story, see http://www.infobeat.com/stories/cgi/story.cgi?id=2560933606-bb8
I heard on Bloomberg Television about the issue with AT&T. They were interviewing the wireless group's CEO and he seemed unhappy with Ericsson. Since I posted this, I found an article at Individual Investor Online where one of their analysts is really down on Ericsson and pointed out a couple of other issues that I was unaware of. Here's the linkhttp://www.iionline.com/tbd/anfdt_frm.asp?ff_id=2797
Curiously, the iionline article did not say anything about the CDMA side of ERICY's infrastructure business. Now that they have bought the business from QCOM, has anyone heard how they are doing? It looks like CDMA is the wave of the future, and that purchase must have significantly helped ERICY's position. Thoughts???Helofool
By now you probably heard the news (CDMA).The iionline article is lots of speculation.The lost business with T is definetely a serious blow,as lost marketshare is hard to get back.However, US marketshare is on the upside, CDMA can only help.3rd generation mobile is the future for the company.Mobile Internet.Does anyone have an idea what the competition is doing in that field?Gerd
"Bottom line: I am not ready to write off ERICY. If you no longer believe in the future of the company, then by all means, move on."Thank you Helofool for your response. It fits into my original reason for investing in Ericy.I purchased Ericsy on a recommendation from someone I thought very knowledgeable. He originally suggested that I buy leaps but being pretty conservative in my investing, I bought shares instead. I knew from the beginning that I might not see reward for a long time as the company restructures.I will be patient.Melody
Helofool et al: I am posting the original press release that announced the settlement between qualcom and ericsson. You probably have already read it but a re-read helped me remember why I have held on to ericy so long.To me it looks like both companies gained substantially. I own shares in both companies, so it is not a loyalty issue. I think that when ericy has positive results from its restructuring, the market will have a better appreciation of their potential (IMO). Any comments? 1999 PRESS RELEASES | QUALCOMM Press Room | QUALCOMM Home P R E S S R O O M 1999 PRESS RELEASES 1999 Press Releases QUALCOMM Inc. (ticker: QCOM, exchange: Nasdaq) News Release - Thursday, March 25, 1999 --------------------------------------------------------------------------------ERICSSON and QUALCOMM Reach Global CDMA Resolution Agreement Paves the Way for the Next Generation of Global Wireless Communications NEW YORK, March 25 /PRNewswire/ -- ERICSSON (Nasdaq: ERICY - news) and QUALCOMM (Nasdaq: QCOM - news) today announced that they have entered into a series of definitive agreements that resolve all disputes globally between the companies relating to Code Division Multiple Access (CDMA) technology. Under the agreements, ERICSSON and QUALCOMM agree to jointly support a single world CDMA standard with three optional modes for the next generation of wireless communications, to enter into cross licenses for their respective patent portfolios and to settle the existing litigation between the companies. The cross licenses are royalty bearing for CDMA subscriber units sold by either party. In addition, ERICSSON will purchase QUALCOMM's terrestrial CDMA wireless infrastructure business, including its R&D resources, located in San Diego, Calif. and Boulder, Colo., and will assume select customer commitments, including a portion of vendor financing obligations, related assets and personnel. The agreements are subject to necessary regulatory approvals and other customary conditions. The agreement settles the litigation between ERICSSON and QUALCOMM and provides for cross licensing of Intellectual Property Rights (IPRs) for all CDMA technologies, including cdmaOne(TM), WCDMA and cdma2000(TM). QUALCOMM also will receive rights to sublicense certain ERICSSON patents, including the patents asserted in the litigation, to QUALCOMM's Application Specific Integrated Circuits (ASICs) customers. The companies have also agreed to jointly support approval by the International Telecommunications Union (ITU) and other standards bodies, including the U.S. Telecommunications Industry Association (TIA) and the European Telecommunications Standards Institute (ETSI), of a single CDMA third generation (3G) standard that encompasses three optional modes of operation: 1) direct sequence FDD, 2) multi-carrier FDD, and 3) TDD. Each mode supports operation with both GSM MAP and ANSI-41 networks. QUALCOMM and ERICSSON believe that rapid adoption of the single CDMA standard is in the best interests of the industry and allows each operator to select which mode of operation to deploy based on marketplace needs. As part of the agreement, the companies will each commit to the ITU and to other standards bodies to license their essential patents for a single CDMA standard or any of its modes to the rest of the industry on a fair and reasonable basis free from unfair discrimination. The companies will notify the ITU and other relevant standardization entities of the agreement to remove all IPR blocking currently in force. The grants of licenses and the settlement of all litigation, as well as the commitment to standards bodies to license their essential IPRs, will become effective upon closing of the purchase of QUALCOMM's terrestrial CDMA wireless infrastructure business. 'With the resolution of 3G and the cross-licensing of our patents, QUALCOMM and ERICSSON have paved the way for the expansion of global CDMA-based wireless communications,' said Dr. Irwin Mark Jacobs, chairman and chief executive officer of QUALCOMM Incorporated. 'ERICSSON's purchase of our infrastructure division underscores its commitment to CDMA, and allows ERICSSON, one of the world's leading telecommunications equipment manufacturers, to expand its CDMA capabilities. QUALCOMM can now focus on its core businesses, including CDMA phones and chipsets, the Globalstar and OmniTRACS systems and new opportunities in digital cinema, wireless data and Eudora products and services.' 'ERICSSON, through its agreement with QUALCOMM -- a pioneer in developing CDMA technologies -- now has complete 3G competence,' commented Sven-Christer Nilsson, president and chief executive officer of ERICSSON. 'We are ideally positioned to support any operator anywhere in the world to migrate to 3G regardless of technology heritage or technology choice.' QUALCOMM's terrestrial CDMA wireless infrastructure research and development and manufacturing division comprises infrastructure for cellular, PCS and wireless local loop. The acquisition provides ERICSSON with leading CDMA research and development, including the cdmaOne and cdma2000 product lines that ERICSSON will further develop and market. ERICSSON will establish a global CDMA center in San Diego, Calif. 'With the addition of cdmaOne and cdma2000, we will be well positioned to serve current and future CDMA markets, including the fast growing CDMA handset market,' said Mr. Nilsson. 'By combining this competence with our industry-leading capabilities in WCDMA, we intend to play a leading role in the converged world of wireless data services.' QUALCOMM will incur a one-time charge in connection with the transactions contemplated by the agreements, the details of which it anticipates will be available when the Company announces results for its second fiscal quarter ending March 31, 1999. QUALCOMM Incorporated (Nasdaq: QCOM - news) is a leader in developing and delivering innovative digital wireless communications products and services based on the Company's CDMA digital technology. The Company's major business areas include CDMA phones; integrated CDMA chipsets and system software; technology licensing, and satellite-based systems including OmniTRACS® and portions of the Globalstar(TM) system. QUALCOMM is headquartered in San Diego, Calif. QUALCOMM's fiscal 1998 revenues exceeded U.S. $3 billion. For more information please visit the Company's web site at http://www.qualcomm.com. ERICSSON (Nasdaq: ERICY - news) is the leading provider in the New Telecoms World with communications solutions that combine telecommunications and data communications technologies with freedom of mobility for the user. With more than 100,000 employees in 140 countries, ERICSSON simplifies communications for its customers -- network operators, service providers, enterprises and consumers -- the world over. For further information, please visit the company's web site at http://www.Ericsson.com. QUALCOMM was advised by Lehman Brothers as financial advisers and Cooley Godward LLP as legal advisers, and ERICSSON was advised by Merrill Lynch & Co. as financial advisers and Shearman & Sterling as legal advisers. Except for the historical information contained herein, this release contains forward-looking statements that are subject to risks and uncertainties, including the risk that the transaction contemplated by the definitive agreements will not be consummated, as well as the other risks detailed from time to time in the Company's SEC reports, including the report on Form 10-K for the year ended September 27, 1998, and the most recent Form 10-Q. QUALCOMM and OmniTRACS are registered trademarks of QUALCOMM Incorporated. Globalstar is a trademark of Loral QUALCOMM Satellite Services, Incorporated. cdmaOne is a trademark of the CDMA Developm
MCK7238,You don't need to convince me! I think it was a big win - win deal! My only issue is that I sold my equity position in ERICY (for a tidy profit) quite a while back (before the QCOM deal) and replaced it with LEAPS (Jan00). Timing has become an issue for me. I am up in the neighborhood of 80% on my LEAPS (now Jan00 options) and may convert back to equity, but probably not until Dec.Helofool
Just curious -- are you the same Mike McLain who works for Nokiaemail@example.com
Best Of |
Favorites & Replies |
Start a New Board |
My Fool |