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No. of Recommendations: 7
OnAJungleHunt wrote:

certainly there are reasons to be hopeful that it may some day be the wireless gorilla, but for now, it is really GSM that is the gorilla: they have leading market share in a proprietary technology with high switching costs (although, as far as I know, there is now one company fortunate enough to be profiting off of this).

3G wireless systems are based on QCOM intellectual property. GSM will transition to 3G technology like all the others.

scrim1 wrote:

My take (and it's probably totally wrong), how can qcom be a gorilla when it's main advantage is it's patents? I mean those run out..

It IS wrong. QCOM is not just a patent collection. It is the leading designer of CDMA chipsets. It is the leading researcher of CDMA technology. As such, it comes up with new inventions on a continuing basis. I have no doubt that its intellectual property will keep growing and new patents will replace old ones. It is the company enabling CDMA deployment around the world, and CDMA will become the dominant technology with the coming of wireless data transmission. It has a strong value chain.

But I guess you don't care to know anything about QCOM so, for you, it's a moot point.

vumaverick wrote:

It seems to me as if revenues have NEVER approached tornado proportions, and while earnings arguably have, they are slowing down.

You really need to examine the numbers beyond simple arithmetic. This company has been undergoing a major reorganization over the past year and a half, like the divestiture of various businesses that contributed heavily to revenues. If you isolate revenues and earnings for the businesses that continue, you will detect adequate growth characteristics.

The GG book sometimes gives the impression that detecting the "right" companies is easy and arithmetic. It is not.

CDMA is the future with the coming of wireless data. There is no company with nearly the resources dedicated to developing CDMA intellectual property AND to enabling CDMA implementation (through chipset design) than QCOM. These two areas are enabling wireless data transmission and QCOM will be in the middle of all this for some time to come.

--fox







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