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Sat, Nov 21, 2009 - 04:53 PM EST  —  AAPL: 199.92 (-0.59, -0.29%)  |  NASDAQ: 2146.04 (-10.78, -0.5%)

Qualcomm ruling may stall Apple iPhone ‘rivals’
Friday, June 08, 2007 - 04:08 PM EST

"LG and Samsung, the Korean handset makers, are scrambling to ensure that their sales are not disrupted by a decision earlier this week by the US International Trade Commission to ban imports of all new phones containing chips made by Qualcomm," Maija Palmer, Jung-a Song, and Chris Nuttall report for The Financial Times.

"Both LG and Samsung are key Qualcomm customers and seen as hardest hit by the ban," Palmer, Song, and Nuttall report. "LG, which has the heaviest exposure to the US CDMA market, is pinning its hopes on getting the ban suspended until an appeal can be heard. It has joined Qualcomm, AT&T and Sprint in petitioning the courts to do this. The appeals process could take up to two years, giving the industry time to make alternative supply arrangements. Samsung, meanwhile, said it was “actively working with its suppliers and customers to ensure a continued uninterrupted supply of its future mobile phone models and is confident it will do so.”

"The company could either get Qualcomm to modify its chips to remove the technology under dispute, or change chip suppliers. However, analysts warned that either process could be long and costly," Palmer, Song, and Nuttall report. "Redesigning chips is a process that could take up to a year or more.

“Motorola is less reliant on Qualcomm but would still be impacted with its 3G variant of the RAZR2 being affected," Palmer, Song, and Nuttall report. "Nokia and Sony Ericsson, on the other hand, would benefit from a ban, as they do not use Qualcomm chips and would be able to continue introducing new products into the US market while rivals were blocked.

"The Apple iPhone, which is due to be launched at the end of this month, could also be boosted by the ban. It does not use Qualcomm chips and its chief rivals are high-end devices from Samsung and LG," Palmer, Song, and Nuttall report.

Full article here.

The Associated Press reports, "If the hype surrounding Apple's iPhone wasn't enough, now analysts say the gadget may also benefit from a federal agency's ruling to ban imports of certain cell phones that use Qualcomm chips."

"Bear Stearns analyst Philip Cusick said if the ruling holds up and prevents the shipment of new handset models, 'then we would see some new high-end handset launches in the U.S. frozen until there is a solution.' While this could affect carriers that planned to launch new music devices to combat the iPhone, "volumes of these phones would have been small anyway," he wrote. 'We believe that iPhone sales for the next 3 to 6 months will be constrained by the number Apple can build and ship, not by competitive devices,' he wrote."

Full article here.

[Thanks to MacDailyNews Reader "macvicta" for the heads up.]

MacDailyNews Take: If Samsung and LG with their so-called, but not very "high end" devices (throw HTC with their latest mess in the list, too) are Apple's "chief rivals," then Apple is going to alter the industry so profoundly that most observers are in for awakening whose rudeness they cannot fathom.

Tacking a junky non-multi-touch screen to something trying to run Windows Mobile or some other baby cell phone OS and pretending it's "just like an iPhone" is going to turn out just like the iPod. This is 2007, not 1995. Consumers are more tech-aware now and can see fakes from a mile away and they stay at least that far away from the knockoff junk as a result. Regardless of this Qualcomm fiasco, Apple's iPhone has no real competition. This is going to be a bloodbath.

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Jun 08, 07 - 03:12 pm Comment from: Bobby Skinner

Like they need another advantage! Apple's only problem is they will not be able to make iPones fast enough

Jun 08, 07 - 03:14 pm Comment from: Zorrin

Okay, I need some honest feedback. You guys, of everyone I know, should understand my Apple obsession. Would it just be stupid to sell 5 shares of my Apple stock in order to buy the iPhone at the end of the month?

Jun 08, 07 - 03:15 pm Comment from: Jeff

15 minutes to go before: Apple shares hit new all-time closing high - again. Are you ready?

Jun 08, 07 - 03:20 pm Comment from: mike

Exactly, it's not like they have anything to compare... Apple has 200 patents on the nuances of the iPhone's technology... Samsung and LG have nothing that a) competes with the iPhone at a competitive price and b) skirts Apple's massive IP holdings

Blaming it on supplier issues is a nice way to get your ass kicked with a smile on your face, though.

Jun 08, 07 - 03:22 pm Comment from: DLMeyer

I'm not sure how this freezes development by companies that are Qualcomm clients. OK, I can see how it would stall their efforts, force them to go back and design around the problem, but that isn't the same thing. And any other decision could be suicidal - something these companies are NOT.

Jun 08, 07 - 03:31 pm Comment from: G Spank

Looking at threads on Slashdot and Fark, most of the world is truly clueless as to how amazing the iPhone really is.

Jun 08, 07 - 03:43 pm Comment from: It's Not

that Apple needs another advantage. The competition needs an excuse for poor and declining sales

Jun 08, 07 - 03:57 pm Comment from: ChrissyOne

@ Zorrin

Yes. Hang on. Believe me, I know how hard it is. I really want a Canon 5D but I'm not taking money out of my stocks just yet.

Jun 08, 07 - 04:06 pm Comment from: Crabapple

The blood bath occured after the MacWorld Keynote address, the evidence was seen at CES where every new technology was over shadowed by the iphone spectre.

The media were unable to get over the keynote presentation and still haven't.

The FUD Mongers have been hard at work to no avail.

This seems to be the dying throes of one last FUDscuse to explain why they have lost the war before the battle has began!

Jun 08, 07 - 04:17 pm Comment from: Zorrin

Thanks for the honest feedback, ChrissyOne.

Jun 08, 07 - 04:29 pm Comment from: Quito

Zorrin, Considering this may be a monumentual event this late June, I'd suggest you sell 10 of your shares and get 2 iphones. One to use, and the other to sell on ebay 5 years from now. Has anyone seen how much 1st Gen iPods are going for ebay right now? Hell if you had one of those to sell right now you could get 2 iphones this month!!

Jun 08, 07 - 04:51 pm Comment from: MacMania

WOW! Is MDN every busy!

I'm slumming, and currently using a friends ghetto peecee with IE. Normally I run either Safari with Pithhelmet or Bon Echo with Adblock Plus. MDN is like Vegas and Times Square in one!!

raspberry

Jun 08, 07 - 05:01 pm Comment from: switcher

MDN, let's hope for the sake of your credibility your right?

Jun 08, 07 - 05:56 pm Comment from: Bob

switcher

For the sake of *your* credibility, you were looking for the word "you're", weren't you?
Me. You.
Mine. Yours
I am. You are.
I'm. You're
Class dismissed.
magic word *any* more questions?

grin

Jun 08, 07 - 06:37 pm Comment from: soothsayer

MDN's take: "Regardless of this Qualcomm fiasco, Apple's iPhone has no real competition. This is going to be a bloodbath."

prediction: while the iPhone certainly won't be for everyone and every market segment (for example, ignore the low-end/low profit end of the cellphone market), "iPhone-killer" will soon become as popular a term in the press as "iPod-killer"... and just as mythical

you heard it here first

Jun 08, 07 - 07:01 pm Comment from: z

just like the iPod everyone will have an iPhone in 5-6 years. iPhone mini.. iPhone nano.... the works. Including all the nay-sayers of today.

Jun 08, 07 - 07:03 pm Comment from: LinuxGuy and Mac Prodigal Son

The ruling may help Apple, but if it is not blocked somehow, it will be a disaster for the country. For the shysters to get the power to shut down so many businesses because of a dispute between their vendors, would allow the legal vampires to extort businesses at will and severely damage industry and the economy. We don't need such a Pyrrhic victory.

Jun 08, 07 - 07:21 pm Comment from: ken1w

Amazingly fortunate that the iPhone does not use those parts. Apple is charmed...

Jun 08, 07 - 07:35 pm Comment from: HOLD YOUR STOCK

@ Zorrin
Zorrin, I am facing the same conundrum. Here's my logic:

Sell a few shares today and buy One First Generation iPhone

OR

Sell a few shares in a few months and buy Several Updated iPhones

your call.

Jun 08, 07 - 07:51 pm Comment from: Mr Grammer Person

Bob,

You're in no position to criticize switcher's grammer. Your knowledge of the subject is obviously limited.

"You're" is a contraction of "you are".
"Your" is the possesive of you.

For example:
Your poor grammer indicates you're in no position to be criticizing the grammer of others.

Jun 08, 07 - 07:55 pm Comment from: Mr. Spelling Person

Mr. Grammer Person, You were looking for the word "possessive", weren't you?

Jun 08, 07 - 08:09 pm Comment from: One guy from Finland

Qualcomm sucks really bad! Bain that is what they should Enron.

Jun 08, 07 - 09:22 pm Comment from: Everaldo

I keep hearing that qualcomm is trying to get the president to overrule the supreme court decision. If it were that easy for a sitting president to overrule the supreme court, Gore would have been president. Unless of course Bush has increased the power if the presidency far beyond what the founding fathers had envisioned.

Jun 08, 07 - 09:41 pm Comment from: @ Zorrin

Comment from: Zorrin
"Okay, I need some honest feedback. You guys, of everyone I know, should understand my Apple obsession. Would it just be stupid to sell 5 shares of my Apple stock in order to buy the iPhone at the end of the month?"

Zorrin, does your mommy still hold your hand when you go pee pee?

What kind of a stupid question are you asking? How the hell does any of us know how deep in debt you are or how drastically you live beyond your means?

Jun 08, 07 - 09:51 pm Comment from: misanthrope

@Mr. Grammer [sic] Person

What an ass. The only "Grammer" I know of is in Indiana.

Jun 08, 07 - 09:55 pm Comment from: misanthrope

I don't remember voting for the U.S. International Trade Commission. Socialism can be quite annoying.

Jun 08, 07 - 09:56 pm Comment from: misanthrope

MW: required ----- Ha! You are REQUIRED to submit!

Jun 08, 07 - 10:42 pm Comment from: One guy from Finland

USA is so poor that they can´t even provide health care for everyone. USA can´t even feed their poorest nor educate them.
USA and they distroy the hole planet?

Jun 09, 07 - 12:30 am Comment from: agree

usa healthcare is a disgrace but they still pump billions into other shit

everyone in australia has government healthcare

Jun 09, 07 - 02:05 am Comment from: Camel Milk Drinker

Hole Planet? Made of Camels Milk Cheese perhaps? that would explain alot. The incredulous amount of farting would produce some interesting holes!! Laughing Out Loud!! ps I know the abr....

Jun 09, 07 - 03:03 am Comment from: Zorrin

@ @Zorrin

A little info about me: I'm 22, I have no debt, I have a somewhat diverse portfolio that only includes 20 shares of Apple. I'm also a nicer person than you.

Basically I was just wanting some feedback. We have a lot of older and more experienced folks on this site who share a love of Apple and I was curious what they would do because I still have a lot to learn about the stock market. Is that really so stupid?

The final decision is mine.

Jun 09, 07 - 03:45 am Comment from: Mr Annoying Person

@Mr Spelling Person:
Mr. Grammer [sic] Person, You were looking for the word "possessive", weren't you?

No need to capitalize the 'Y' after a mere comma.

@Bob:
You forgot the punctuation after "You're".

@Mr Grammer [sic]Person:
Just what was your complaint about Bob?

@misanthrope:
Is Kelsey Grammer in Grammer, Indiana?

@The next commentator in this thread:
Don't even think of it!

Jun 09, 07 - 03:57 am Comment from: Troll

Would it just be stupid to sell 5 shares of my Apple stock in order to buy the iPhone at the end of the month?

If the stock goes up, no. If it goes down, no. Whether it goes up or down, no. If you want to know what the stock will do, I can give you an accurate but limited prognostication:

It will go down and up, up and down, down and up and down and up. Then it will split. Continue from the beginning of this sentence.

I'm only kidding, 'K? If you need to sell stock to buy an iPhone then you won't have an iPhone if you don't sell stock. If you don't need to sell stock to buy an iPhone then you might consider rephrasing your question by eliminating the purpose of the sale of stock, in which case, the answer would be slightly different:

If it goes up, yes, unless it goes back down and you can buy it for less. If it goes down, no, unless it goes back up and you can't buy it for more.

If you want to know what the stock will do, I can give you an accurate but limited prognostication....

Jun 09, 07 - 06:35 am Comment from: Awesome

Hi All,

Me again. Wo wow wo Imac Phones to cool.!!

I am sooooo Excited about Tuesday:

PS : MS is Crap agan

Jun 09, 07 - 08:34 am Comment from: Toby Belch

Zorrin,

you're certainly right about being nicer than @Zorrin (although you say it yourself!)
His post was one of the most unnecessarily nasty posts I've read in a long time.
Your question was quite normal and natural; I've often been in similar dilemmas.

Jun 09, 07 - 09:49 am Comment from: Roland Burgan

I like the Apple iPhone. I think its pretty cool.

Jun 09, 07 - 02:01 pm Comment from: drmacnut

@zorrin, good you're thinking about this. I am by no means a investment advisor, but here is my opinion as both an Apple stockholder and one who wants an iPhone.

First of all, Troll (above) is exactly right. So re-read that post.

Now, I don't know what percentage 5 shares is of your total AAPL holdings, and that should play into your decision.

But let's say you take the 5 shares (a very small amount) that you want to use for the phone. If the stock goes up 10 points to 134, you'd earn (5x134)-(5x124)-(commission) which equals, what, $50 at the most? But how long will it take to go up 10 points? Re-read Troll's post. It might in the next 2 weeks, or 2 months, or maybe longer depending on so many factors. (It could go down, too, but I doubt by much and not permanently unless something terrible happens.)

So is "earning" $50 on a long-shot of hoping the stock will go up, really worth it instead of getting an iPhone? I say, if you can get some added value to your life from having the iPhone that is greater than $670 to you, then you should get the iPhone and call it "opportunity cost." Why not enjoy life?

On the other hand, if you've already got a cell phone that does just fine, and you've got credit card debt or other debt, then you should sell your $620 of stocks and pay your debts off. Those stocks may not be even paying for the interest on any debt you have.

Once again, I am no investment advisor, and people can probably poke many holes in the simplistic reasoning I am using. So if anyone else out there has something positive to add to this point, please go ahead.

As far as Qualcomm and this whole problem of blocked imports, why the heck didn't Qualcomm do something about this when they first heard of Broadcom's complaint two years ago?? They should have been working on a solution at that time. I hope the courts take care of this and not the President.

Jun 09, 07 - 03:14 pm Comment from: Mr Grammer Person

I want to thank Mr. Annoying Person (and misanthrope too) for bringing my attention back to this thread so I could look back soberly this morning and realize I owe a sincere apology to Bob. His grammar was fine, as was his spelling, unlike that of some of us.
I think MDN should install a sobriety test that you must pass before your post can be submitted. It could save readers from the pain of posts like these.

Jun 09, 07 - 04:17 pm Comment from: doG

...and now, Viewers, back to your regular programming...

Jun 09, 07 - 08:50 pm Comment from: awesome

Zorrin Shares will go down, Sorry to say in 1- 2 months,

They will rise again after that,

Not because apple does not rock but investors are money people.
We all know here at MDN but hate PC people

So be looking for easy cash ie Oil, Gold.

When PC and Linux becomes a business standard Appl
Will rise again and again,

Keep cool get an iphone.

Jun 10, 07 - 02:38 am Comment from: aka Mr. Annoying Person and aka Troll

Guilty as charged too - you're welcome.

MW: followed - completely irrelevant except that one post followed the other, and so on.

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