QCOM vs Nokia

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By Bdaz
August 3, 2004

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We've been jousting for a couple of years now. It is hard for me to understand what goes on in Nokia's boardroom, but I think IC's posts shed a lot of light in this area. IC is an intelligent guy. The reasoning must be there. Although reasoning that must reach further and further to nitpick QCOM "mistakes", while excusing huge Nokia gaffs rings more and more hollow as this story continues to unfold.

No matter how this does unfold, Nokia's biggest mistake will always be choosing QCOM as a competitor. Notice I used the word "choosing". They did not and still do not have to make this choice. After the years of CDMA disappointments one wonders why they continue to follow this failed strategy. Surely Nokia can see that the success and superiority of QCOM's technology continues to boost Nokia's handset competitors to new heights, steadily gaining ground on the Finns. Surely Nokia can see that their anti-QCOM strategy is [such] a strong ally of these competitors, they thank their lucky stars every day that Nokia continues to make this irrational choice. Surely they now realize the superiority of QCOM's CDMA R&D, and business strategies that have led to Nokia being dethroned in market cap by QCOM.

By contrast, Sprint recognized its mistake in choosing EVDV over EVDO. Sprint moved quickly, admitted their error, and made immediate plans for EVDO. This is what businesses are supposed to do. Nokia can see this new market unfolding, knows QCOM has the best proven EVDO handset chip technology, yet once again may very well be choosing to make QCOM the competitor rather than what would be a strong ally in this market. Again their competitors will dance in celebration as Nokia makes it easier and easier to be dethroned in handset share as well.

For years Nokia has chosen to compete with QCOM in the CDMA arena. It has cost them and their shareholders in a major way. One can only wonder if there is anyone in that organization at least hinting to change the failed strategy that has helped to sink this company to its recent lows. Has the idea even been mentioned that "Maybe we should use QCOM as an ally in our CDMA handset wars instead of simply giving this huge advantage to our competitors."

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