Lately, I’ve been having a lot of discussions with
my close circle of friends about the stocks of
various players; Apple up, Verizon down,
Samsung (News - Alert) wins due to the use of
their flash memory.But by far the biggest winner was Qualcomm,
and here is why:
1) The CDMA network is alive and well thanks to
Verizon ’s choice to make it the platform for
Apple’s (News - Alert) iPhone. This adds a
whole new level of opportunity for the CDMA
developer market and gives them access to a
consumer market that is not use to ease of use
devices. I expect the CDG M2M ecosystem to
expand for CDMA as a result of this access.
2) Speaking of the ecosystems, we ran a
webinar with Qualcomm (News - Alert)
about a month ago in the off hours. The webinar
showed that CDMA is alive and well in the rest of
the world. The great story there is that Verizon
has opened the door for CDMA iPhones for the
rest of world and the iPhone is a status symbol
world-wide. Based on Verizon Wireless ( News -
Alert) we should expect that CDMA brings another
20M devices world-wide.
3) Eschewed Standards are now the norm. The
term 4G is hiding a diversity in the market that
consumers will have a rough time
discerning. The reality is that while everyone is
expecting DSL on 4G you are not going to do that
much better than existing networks and for
sometime you should expect that CDMA
networks will be more ubiquitous.
While people will get confused CDMA was the
best of the 3G networks and it may get the benefit
of being the people ’s standard.
On 1.11.11 QCOM closed at 52.23
I will warn you that I am not an active trader and
there are many people better qualified to advise. I
may not write the Gilder report, however, this is
a very logical discussion.
Source: Http://m2m.tmcnet.com/topics/m2mevolution/articles/133935-the-verizon-iphone-winner-qualcomm.htm
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