Ruski

Qualcomm Loses Again

I am once again astonished that this seems to come as some sort of "a big surprise" to so many investors in the US. From an European perspective this has been evident for many years and the question has, in my mind, only been - how long can Qualcomm continue doing things the way they have until they have everybody in the industry food chain against them?
And now it seems we are finally getting to that point. And it sure has taken much longer than I personally thought. Glad I didn't short it too early.

Going forward, with
1) Current trends of CDMA IS-95 networks gradually but surely being phased out
2) Qualcomm's so called critical patents in the growing WCDMA world being questioned
3) Nokia's new (and old) 3G WCDMA chipset partners building scale (and more and more of the other top 5 handset vendors turning to the same names for chips ...)
4) and finally, Qualcomm's overall royalty schemes being critized and questioned (as relics from ancient history ...)

... I can not conclude anything else than that the stock is likely to be very volatile and potentially a very dangerous long position. In the bigger picture their business model seems to be running on fumes.