The gloom and doom in the news about a recent ITC-sanctioned ban on Qualcomm's
Yesterday, Taiwan's High Tech Computer, or HTC, said that it will launch 10 different smartphones and personal digital assistants (PDAs) that include the latest Qualcomm chips before years' end. This includes bringing the Microsoft
But with a product ban in effect, barring the importation of these devices into the U.S., just how will HTC's iPhone-killer make it to the shelves? A few options are possible. Verizon Wireless already struck a license deal with Broadcom directly to keep its supply chain wide open for the holidays and beyond. Sprint Nextel
With these mitigations for the product ban, Qualcomm may see little actual impact in terms of product flow for its customers in the near term. There will definitely be other significant -- but possibly less measurable -- consequences to Qualcomm, however. While HTC's CEO announced his pleasure with a close strategic relationship with Qualcomm, other device manufacturers will likely be looking harder at alternative suppliers.
The world largest cell-phone maker, Nokia
But even with increased pressure from the ban, the work put into mitigating its effect and getting products to the U.S. means that American gadget lovers can keep their dreams of the latest whizbang mobile devices alive. In the longer term, though, Qualcomm needs to resolve the core legal issues before other large device makers decide to jump ship.
For further Foolish insight:
Looking for great stocks with great potential? The Motley Fool Stock Advisor newsletter profiles two new companies each month poised to beat the market. Check out the full list of recommendations with a free 30-day trial.
Fool contributor Dave Mock knows the secret of telling twins Chip and Dale apart. He owns shares of Qualcomm and is the author of The Qualcomm Equation. Microsoft is an Inside Value selection. The Fool's disclosure policy is not designed for space flight, but could do remarkable things if only given the chance.