“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.]
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.
I don’t remember voting for the U.S. International Trade Commission. Socialism can be quite annoying.
MW: required —– Ha! You are REQUIRED to submit!
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?
usa healthcare is a disgrace but they still pump billions into other shit
everyone in australia has government healthcare
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….
@ @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.
@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!
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….
Hi All,
Me again. Wo wow wo Imac Phones to cool.!!
I am sooooo Excited about Tuesday:
PS : MS is Crap agan
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.
I like the Apple iPhone. I think its pretty cool.
@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 (5×134)-(5×124)-(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.
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.
…and now, Viewers, back to your regular programming…
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.
Guilty as charged too – you’re welcome.
MW: followed – completely irrelevant except that one post followed the other, and so on.