The truth about W-CDMA

So I was wrong about W-CDMA. Qualcomm do not own the patents for this technology; they just sell chipsets for it. This explains why the market was so spooked when Reliance said they were considering switching from CDMA-2000 to W-CDMA.

However I do not think this will affect QCOM's earnings growth in the short term. And the market will soon go back to focussing on the excellent growth rate, dividend yield and share buy back and forget about Reliance. And the share price will surely rise about $40 before the end of the year.

In fact I like QCOM so much I am going to buy some more. I regretted not buying any last year when it was below $35 so I am not going to miss this chance.

I think QCOM can earn $2 in 2007. That is a 2007 PE of 18 - far too low for a company of this quality.