Qualcomm Inc (QCOM)

[jackmore]

From GS
CHATTER ABOUT MOT DEVELOPING OWN 1X CHIPSETS IS JUST THAT

There was chatter yesterday suggesting Motorola is designing its
own 1x chipset and QCOM's business with MOT is at risk. While we do
believe that MOT would like to drive down the cost of CDMA handset
development to bring it more in-line with GSM and it sees enabling other
chipset suppliers besides QCOM as a means to achieving this, we do not
believe MOT is designing its own chipsets currently. MOT SPS said
publicly it has no intention of designing a 1x platform solution but
does provide some RF and power management ICs that complement QCOM's MSM
5K/6K offerings. We believe concerns on 1x chipset competition are
overblown but are likely to resurface again either later this year or
early next as there could be handsets that get launched into the market
based on competing chipset solutions. QCOM's market share, however, is
still only likely to increase, in our opinion, with the MSM6XXX raising
the attach rate of its RF ICs and thus increasing its total dollar
content per handset. We believe MOT is set to launch four 1x phones
this year for the Americas, all of which will be based on QCOM.

http://www.siliconinvestor.com/stocktalk/msg.gsp?msgid=17818439