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From: lunch3/17/2011 11:35:13 PM
   of 117889
 
Question on the GOBI chip. I've seen some people refer to this as a software-defined radio (SDR), but I have some confusion as to whether this is truly the case. Does GOBI simply combine/aggregate multiple chips onto one larger chip? Or is it truly one chip with one radio that can be tuned and reprogrammed to work with multiple signals?

If the latter is true, then does anyone have any perspectives on when a true SDR will be developed that can be used with mobile phones and other consumer devices? Is this something that is 1-2 years off, or more like 5-10 years off?

Thanks in advance for your insights!

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To: engineer who wrote (100673)3/18/2011 2:23:57 AM
From: A.J. Mullen3 Recommendations   of 117889
 
I take your point that Japan has spare capacity, but one sentence might mislead te credulous. (If they shut off the 10 000 lights all over downtown Tokyo, they probably reduce the country electricity by 10%)

Say the lights are 100W each, that's 1 MW. The six reactors at Fukishima have 4.7 GW between. That's 4 700 times the power of your 10 000 lights. Yes, a 10% shortfall can be managed without too much dislocation, but switching off 10 000 lights isn't going to do it.

Ashley

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From: slacker7113/18/2011 9:06:50 AM
3 Recommendations   of 117889
 

FWIW, CTIA starts next Tuesday. It isnt traditionally a big event for Qualcomm announcements but I can imagine that handsets with Q's dual-core solutions slated for a summer launch will be announced.

Slacker

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To: The_Net who wrote (100678)3/18/2011 11:07:04 AM
From: Jim Mullens2 Recommendations   of 117889
 
The Net, re: reactors shutdown

I agree with most of your post however I strongly disagree with the following statement “I can say that once the reactors are capped and shut down, they will be shut down for ever.” You have to look at case by case

The info I heard early on was that flooding the reactors with sea water to cool them would cause irreparable corrosion damage. That decision was further rationalized with the statement that those reactors were 30 + years old and close to replacement in any event.

I later heard that the sea water flooding was in the outer pools, outside the reactors themselves. Those pools were a storage area for spent rods / pellets.

With all the conflicting info it’s difficult to know just what to believe.

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From: benhorseman3/18/2011 11:31:40 AM
7 Recommendations   of 117889
 
Qualcomm continues to dominate share of smartphone applications
Mar 17, 2011

compoundsemiconductor.net 

According to Strategy Analytics, both Qualcomm and Samsung registered triple-digit unit shipment growth in 2010, despite their contrasting approaches to the smartphone applications processor market.

Smartphone applications processor revenue showed 77 percent year-over-year growth to reach $4.52 billion in 2010, according to, “Smartphone Apps Processor Market Share: Qualcomm’s Revenue Share Reached 41 Percent in 2010”, from Strategy Analytics’ Handset Component Technologies service.

This 2010 market surge helped most applications processor vendors grow in terms of both revenue and unit volume.

Qualcomm led the overall applications processor market with 41 % revenue share, followed by TI with 27 % and Samsung with 19 %. Also, the baseband-integrated applications processors continued to gain share, accounting for 74 percent of total 2010 smartphone applications processor revenues.

“Strategy Analytics recognises Qualcomm as a top-tier supplier in the smartphone applications processor market in 2010, due to its active participation in the multiple software ecosystems and its highly integrated Snapdragon processors,” noted Stuart Robinson, Director of the Handset Component Technologies service.

He added, “In our view, Qualcomm has a two-to-three year advantage over most of its competitors in terms of integration; and is ideally situated for further share gains from on-going radio technology shifts, such as HSPA+ and LTE.”

“With strengthening product portfolios and increasing competition, 2011 is shaping into an interesting year for the applications processor market,” commented Sravan Kundojjala, Senior Analyst. “According to Strategy Analytics, applications processor vendors should build competitive barriers by investing in integration, graphics processing technologies, multi-core processors and software expertise. Otherwise, they risk becoming commoditised, since the entry barrier is relatively low for new vendors to enter into the ARM-based chip ecosystem."

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From: Bill Wolf3/18/2011 12:16:44 PM
   of 117889
 
HTC Thunderbolt (Verizon Wireless)
REVIEW DATE: 03.18.11
BOTTOM LINE:
The HTC Thunderbolt, the first 4G LTE smartphone for Verizon Wireless, has the fastest Web speeds we've ever seen, but be prepared to carry an extra battery.

PROS:
Incredible Internet speeds. Big, gorgeous screen. Elegant interface. Simultaneous voice and data. Lots of storage.

CONS:
Heavy. Poor battery life when surfing or streaming on 4G. Occasional bugs.

COMPANY:
High Tech Computer Corp. (HTC)

SPEC DATA
Price: $179.99 Direct
Operating System: Android OS
Screen Size: 4.3 inches
Screen Details: 480-by-800, 16.7m-color TFT LCD screen
Camera: Yes
Megapixels: 8 MP
Camera Flash: Yes
Flash Memory Type: Micro SD
802.11x: Yes
Bluetooth: Yes
Web Browser: Yes
Form Factor: Candy Bar
Network: CDMA
Bands: 850, 1900, 700
High-Speed Data: 1xRTT, EVDO Rev A, LTE
Storage Capacity (as Tested): 2.46 MB
Processor Speed: 1 GHz
EDITOR RATING:

By Sascha Segan

The first 4G LTE cell phone, the HTC Thunderbolt, lands with a bang, scorching the landscape and sending mere 3G phones fleeing for cover. This is the fastest Internet phone ever, and it wins our Editors' Choice for the top touch-screen smartphone on Verizon Wireless. But that scorching speed has a price: it burns up the phone's battery, so you'll need to bring a spare.

The HTC Thunderbolt looks and feels huge. It's classy looking, though, in all-gray with a glass front and a soft-touch back. There's a small 1.3-megapixel camera next to the earpiece, and a larger 8-megapixel shooter on the back, along with a kickstand, so you can prop the phone up on a table or a desk. The 4.3-inch, 800-by-480 screen looks unusually rich. But at 6.4 ounces, the Thunderbolt will weigh down any pocket, and at 4.8 by 2.6 by 0.5 inches (HWD), it won't fit in some of them. That's the price you pay for being an early LTE adopter.

LTE Internet Access and Speeds
Let's get to the most important thing first: this smartphone has the fastest Internet access, ever. It sets the Web on fire.

Verizon's LTE network currently runs in about 40 metro areas, give or take a few, and it's constantly expanding. The carrier doesn't charge extra for LTE: the $30/month smartphone data plan costs the same as a 3G data plan does. And for now, you get unlimited data. An extra $20/month buys you 2GB of data for a laptop or other device to use via USB or Wi-Fi tethering. The phone's hotspot mode supports eight devices rather than the usual five (the faster to use up your 2GB allotment with.)

I ran Ookla's industry-standard speed test on the phone itself, on a PC connected via USB cable, and on a PC connected via Wi-Fi hotspot. Speeds were awesome. As expected, tethering is the fastest— you're using the phone's modem, but a fast PC processor—followed by the on-phone speed test and then the Wi-Fi hotspot, because Wi-Fi bleeds speed.

On average, I got 11.8Mbps down tethered, 9.6Mbps on the phone and 6.3Mbps with the hotspot. Upload speeds were also fast; about 2Mbps with the hotspot and 4Mbps tethered. (The upload part of the Ookla speed test app isn't compatible with this phone.) Latency was generally around 85ms.

These numbers translate into super-fast file downloads; I grabbed a 99MB episode of The Colbert Report from Bitbop in four minutes. Most smaller files, like anything from the Android Market, just zip along. With unlimited data, I downloaded huge video files without fear or concern, and that felt great.

To test Web page loads, I compared the Thunderbolt against an HTC EVO 4G ($199, 4 stars) for Sprint. Around here, I can get between 3-5Mbps on Sprint's 4G WiMAX network. Complex Web pages loaded about 1.5 times as fast on the Thunderbolt as on the EVO, with many pages coming in under 10 seconds.

That's all compared to Sprint's 4G. Compared to Verizon's 3G, the LTE network is even faster. In last year's 18-city tests, we got average speeds around 1Mbps down on Verizon's 3G, with latency of about 100ms compared to LTE's 85ms.

Early Verizon modems had trouble switching between 3G and 4G. I got the Thunderbolt to successfully trade from 4G down to 3G, and back up to 4G, depending on coverage. Switching up does take longer than dropping down; while the phone can drop to 3G in a instant, it takes about two minutes to get back to 4G.

The Internet access here is so fast that it becomes critically important that Verizon offers an unlimited data plan. Even without tethering, you can eat a lot of data very quickly.

If you don't have LTE, the phone also offers 3G data and 802.11n WiFi. Speeds on 3G were comparable with other top-of-the-line Verizon smartphones like the Motorola Droid X ($199, 4.5 stars)

Phone Performance and Battery Life
Hey, remember all those AT&T ads where they complained you can't talk and surf at the same time on Verizon? No longer. The Thunderbolt allows simultaneous talking and Internet access on both 3G and 4G networks. I tried it, and it worked well.

As a voice phone, the Thunderbolt is just fine. RF reception is on the good side of average. Voice quality is strong; the earpiece is loud and there's an unusual amount of side-tone, the reflection of your own voice in your ear that prevents you from yelling. I like that, because it makes you talk more quietly into the phone and should help make Thunderbolt users more socially acceptable in public places. The speakerphone isn't very loud, but it's just loud enough to be usable outdoors. Voices transmitted through the mic are totally intelligible but sound a bit computerized; the speakerphone lets through a bit more background noise than I'd like, but it isn't awful. The phone paired easily with my Aliph Jawbone Era Bluetooth headset ($129, 4.5 stars) and activated the voice dialing system.

Battery life here is an interesting issue. On 3G, it's great. I got nearly eight hours of talk time on the surprisingly small 1400 mAh battery. In another test, I watched a local video file with the phone connected to the LTE network, but not downloading. I got about six hours of video playback.

Heavy LTE use, on the other hand, totally nukes the battery. I tapped out the battery in only two hours and 20 minutes of LTE streaming using Bitbop and YouTube. If you intend to do a lot of 4G surfing, you'll have trouble lasting a day. Since there's no way to turn off 4G, use Wi-Fi when you can to save battery life.

Another option is to buy a second battery. Verizon offers a second standard battery for $39.99 and a gigantic 2750 mAh "extended" battery for $49.99. Two batteries, or one extended battery, would probably give this phone a full day of life.

Processor, Android and Apps
The Thunderbolt runs on a 1GHz, second-generation Qualcomm MSM8655 Snapdragon processor and runs Android 2.2 with HTC's attractive Sense overlay. On our benchmarks, it performed as well as any high-end smartphone that doesn't have Nvidia's dual-core Tegra 2 chipset. Unless you're an avid gamer, there's no reason to skip this and wait for a for Tegra 2.

HTC and Verizon have baked a ton of extra software into this phone. Much of it is bloatware, stubs for apps that charge you every month. Verizon has actually taken bloatware to a new level, installing an entire alternative app store called "V Cast Apps" that is sluggish and ugly, but has one big advantage: you can charge app purchases to your phone bill. Of course, you also have access to the 100,000-plus apps in the standard Android Market, along with whatever you sideload from other sources.

The most intriguing app here is Bitbop, Fox's downloadable TV store. The phone includes a two-week teaser; after that, it costs $9.99 per month. Right now, the app has a lot of Fox content and stuff from a few other cable networks, such as Comedy Central and TLC, but none of the other major broadcast networks. But Bitbop kept throwing errors when I tried to browse or see my queue. Repeated clicking let me get past the errors, but it was irksome.

Other Verizon bloatware includes the Blockbuster Movie Store, a golf game, Kindle, Rhapsody, Rock Band, and VZ Navigator. You can also download visual voicemail, a cloud storage app and a music syncing app. HTC adds its standard Sense apps, including the Twitter client Peep, Quickoffice for mobile document editing, and TuneWiki, a great alternative music player which adds lyrics to your songs.

Very notably missing is Skype, Qik, or any way to use the phone's front camera. Your only downloadable video chat option is Fring (Free, 2.5 stars), which we've had generally poor experiences with. You don't even get Verizon's voice-only Skype solution—you have to download the generic Skype, which only works over Wi-Fi and not 3G. Boo.

HTC's Sense is all free and all useful, including a really good-looking alarm clock, social networking widgets, enhanced calendar and address book apps, and lots of other attractive touches. It really takes the geeky edges off of Android's UI.

I found some bugs; many of them have to do with half-baked Verizon bloatware. HTC's Sense UI popped up occasional error messages, but none of them crashed the phone, so I'm not going to worry too much about them. Trying to sign up for Rhapsody gave me an error. V CAST Videos threw an error, and as I said before, I ran into several errors with Bitbop. My Thunderbolt never froze or crashed during testing, though.

Media
You get about 2.5GB of free memory and a preloaded 32GB MicroSD card, so there's plenty of room for media. If you want to remove the memory card, you must remove the battery first. To get media onto the phone, you can drag and drop with the included USB cable or use the free doubleTwist syncing software.

The Thunderbolt's 8-megapixel camera is pretty good, for a cameraphone. The shutter is acceptably fast at 0.6 seconds. Exposure is a mixed bag depending on what part of an image you aim the camera at, but I like that, as it gives you control over dark and light areas. Low-light images are sharp but show a lot of color noise.

The video camera mode records 720p videos, but it works far better outdoors than indoors. Outdoors, both 720p and 800-by-480 videos were sharp and smooth enough. But indoors in lower light, videos looked wobbly and somewhat jerky, with frame rates around 20-22 frames per second. The autofocus also sometimes took a few seconds to lock in. The 1.3-megapixel front camera is fine if you like taking pictures of your own face, but there aren't many other uses for it.

I love the kickstands—it makes it easy to watch video on your phone. It flips out from the back, although you can't use it when the phone is also plugged into its AC adapter.

The Thunderbolt plays most media formats, but you need to be just a little thoughtful about what you load onto it. MPEG4 and H.264 files up to the screen resolution looked great. 720P HD files were a bit jerky, but watchable. DivX was okay, but some Xvid files lost their sound, and WMV was out. AAC, MP3, and WMA music, as well as the sound from videos, sounded fine over both wired and Bluetooth headsets. And if you're looking for free, high-quality video, YouTube HQ streams beautifully over LTE. There's also an FM radio that works when a wired headset is plugged in.

Conclusions
The HTC Thunderbolt is the most powerful smartphone for Verizon Wireless right now, so it gets our Editors' Choice for touch-screen smartphones. Just make sure to buy a second battery.

Verizon has a bunch of new LTE phones coming out soon. The Motorola Droid Bionic looks intriguing because of its Nvidia Tegra 2 processor, which should make it terrific for games. Maybe the LG Revolution or Samsung Stealth will solve the Thunderbolt's battery issue. We don't know, though, so for now we're recommending the Thunderbolt.

We'd recommend the Thunderbolt for 3G users as well. It's a bit better than the Motorola Droid X because HTC Sense is smoother than Motorola's Blur software, and you get the benefit of 4G when it comes to you. Until then, enjoy the better battery life on 3G.

The unlimited 4G data plan is another reason to buy this phone now—after all, you don't know if that plan will be offered with any future phones.

The Thunderbolt is still a big, heavy, expensive phone ($249 with a two-year contract), so it's not for everyone. On Verizon, the iPhone 4 ($199, 4 stars) is very easy to use and has an even better selection of apps, and the HTC Droid Incredible ($99, 4.5 stars) is an Android phone which fits better in smaller hands than this device does. But neither of those phones come anywhere near the HTC Thunderbolt's Internet speeds in LTE areas. While we're concerned about the Thunderbolt's short surfing time on 4G, we think the incredible speed of LTE is worth it.



pcmag.com 

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From: Bill Wolf3/18/2011 12:38:48 PM
   of 117889
 
March 18, 2011, 7:34 am
Is Amazon Working on an Android Kindle?
By NICK BILTON
Illustration by Nick Bilton/The New York Times

Amazon has been incredibly successful with its Kindle e-reader, offering a lightweight reader at an affordable price. But the pizazz of the iPad 2 and the dozens of Android-based tablets that are slowly making their way off of conveyor belts and onto store shelves is rekindling a number of unanswered questions about the next generation of Amazon’s e-reader.

First and foremost, will Amazon finally release a full color Kindle? If the company decides to go down the color rabbit hole, what operating system will it choose? And finally, will it still be primarily an e-reader, or will a color Kindle compete with other tablets on the market by offering e-mail, more immersive apps and video.

Although Jeff Bezos, Amazon’s chief executive, has said in the past that a color Kindle is “multiple years” away, new job listings on the Lab 126 Web site, the division of Amazon that makes the Kindle, show that the company is building up its team of Android developers, which might involve developing software for a color screen.

At least five new jobs were added in the last week alone seeking developers with Android programming experience.

Now this could simply mean that Amazon is hiring engineers to work on new software for other Android devices. But it could also pave the way for a Kindle that runs Android, which would in turn be a color device. The current Kindle runs the Linux operating system.

It’s still up for debate whether an Android Kindle would be good for Amazon, or better for Google. With tablets becoming a competition over the number of apps available for the platform, Amazon would have a lot of catching up to do if the company decided to introduce an entirely new tablet operating system.

What do you think? Should Amazon join forces with Google and develop an Android Kindle, or should the company stick to its own platform?


bits.blogs.nytimes.com 

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To: benhorseman who wrote (100683)3/18/2011 12:45:45 PM
From: Paul V.   of 117889
 
Threaders, will the downgrade of Apple negatively impact QCOM?

Blasphemer!: Meet The Analyst Who Downgraded Apple
Article

By Matt Phillips

Stick your neck out. Not always a good thing

JMP Securities analyst Alex Guana got quite a bit of attention — as well as the honorary MarketBeat “Golden Guillotine” award for sticking his neck out — earlier this week, with a rare downgrade of Apple to “market perform” from “market outperform.” He took a few moments to parry a few questions from MarketBeat via email. Here’s our exchange.

MarketBeat: Alex, thanks a lot for taking a few minutes. Just to give our readers a sense of your background you’ve been a tech analyst for a while, first at Banc of America Securities, then UBS and now at JMP Securities, is that correct?

Alex Guana: Yes, that is correct. Prior to beginning my career as an Analyst on Wall Street, I was an electrical engineer for a hybrid electric vehicle start up, for Toyota Motor Corporation (based in Japan for three years), and with IBM. It is from my Japan, IBM and associated TRW relationships that I first evolved some expertise in advanced materials used in cellular and fiber optic communications.

MB: TRW?

AG: TRW, a defense and aerospace company that at the time of my early engineering work was looking for commercial applications for its technology. Much of our advanced communications technology, including the RF deck of Apple products, can attribute its origins/biggest break-thrus to such activities.

MB: Ah. Ok, you lost me there for a sec. So, you made some waves [Wednesday] with your downgrade of Apple to “market perform.” Did you have any second thoughts about chopping your rating on Jobs & Co.?

AG: No, not at all. Deceleration in the company’s primary manufacturing partner, Hon Hai, was something that we wanted to make investors aware of and to that end we achieved our goal. Investors raised some valid questions around the potential that there may have been some seasonal pre-build ahead of the Chinese New Year, or that Apple supply chain diversification efforts could have accounted for the Hon Hai slow down.

While this is true, we have conducted research subsequent to our downgrade that clearly points away from a pre-build explanation and we simply do not see any evidence of diversified manufacturing activity of a scale that would explain away developments either.

If we have any regrets, it would be around the timing of our actions given the greater importance and significance of all that is going on in Japan. Unfortunately the data was the data and came out when it did and set our research efforts in motion. If I may, to all my friends and former colleagues there: take care, and God Bless. We are thinking of you and just let us know if there is anything we can possibly do. Especially you Sherman, and you Katoh-san tachi. Ganbatte!

MB: No problem, we’ve been doing a lot of thinking about folks in Japan here at MarketBeat too. Now, let me boil down your argument about Apple. Basically, you see a slowdown at Apple’s contract manufacturing partner. Got that. So you think that reflects a slowdown in builds for Apple, which might transfer into slightly disappointing sales numbers? Do we understand that right?

AG: That is correct. Given the high degree of correlation between the two companies in 2010, the most probable explanation for a Hon Hai slow down of this magnitude is that it at least in part if not in its entirety reflects developments at Apple. Some have pointed out that the train wreck going on in other electronics verticals, for example PCs and parts of communications, could also be to blame.

Again, this is true, but these factors were in place well before we rolled into 2011, so I don’t see why they would cause such a pronounced divergence only now and there is ample, if not excess, weakness being seen in other contract manufacturing and ODM channels to account for other slow downs. It occurs to me that Apple is a good bit of the reason many other technology companies have [been] struggling (think Nokia) so their loss should be Apple and Hon Hai’s ongoing gains if trends were still intact.

MB: Ok, so bottom line. You’re reading this as something of a slowdown in demand for Apple products? Right? I mean, if it was just a supply hiccup it wouldn’t be worth downgrading the shares right?

AG: Correct. And this is where it is important to bring up Apple’s over five year track record of beating and raising Wall Street estimates by an average of +23%. Despite all the well-warranted media and market attention paid to the name, it was evident to me that the long run of financial success had generated a dangerous amount of complacency in the investment community.

Too few clients that I was speaking to were paying attention to the readily available channel data, or were inclined to even get into a serious discussion about it. At the same time, many on the Sell Side appear to have gotten themselves into a one-upmanship frenzy of pin the tail on the price target. It never ends pretty.

I can tell you this from experience. As a younger analyst I was guilty of falling prey to the same trap with Broadcom, a dot com darling before the bubble burst and present day supplier to Apple. Paul Wick, a portfolio manager for Columbia Management Investment Advisors/J&W Seligman and one of the greatest technology minds of our time, correctly called me on my lack of vigilance and care. Ten years later and I am still losing sleep over the way I let him and others down. I may be early with this downgrade. I may be wrong. But I am trying in earnest to be, and help others be, vigilant with their capital.

MB: As we noted before, we gave you the MarketBeat honorary “golden guillotine” award for sticking your neck out on this one. One last question, have you ever been this far out of consensus on a call before? [If so,] how did it go?

AG: Well, at least for the present me and my research team at JMP has earned itself a Five Star StarMine ranking for our technology coverage universe, which excludes Apple b/c we have not been following it for the requisite two year period. My understanding is that the stars are at least based in part on the magnitude of divergence from consensus, or sticking ones neck out as you put it, and our best scores appear to have been tallied in Qualcomm (another giant of the smartphone and tablet industry) where at last check we topped the lists.

That upgrade over a year ago served investors extremely well both in terms of timing and return. On the downgrade side, our earlier 2011 moves to a more cautious stance on Entropic and Nvidia have also proven to be good calls so far. I thank you for the award consideration, but if you don’t mind I will take a pass on the guillotine category and see if in a few months I have a shot at the Golden Axe. [Eds note: "The Axe" is Wall Street slang for an important and influential analyst on a particular stock, whose calls often move the price.]

MB: One more question. What kind of response did you get to the downgrade? Were you at all surprised by it?

AG: Yes, but perhaps not in the way you might think. Believe me we were well aware of the high profile nature of Apple and its importance within investment portfolios, and given our experience being on the receiving end of outsized media and investor interest before we were ready so as not to be overwhelmed by the overwhelming response.

But we also know how much people love their Apple technology, and it is an admiration we share (ironically Fed Ex just delivered the first of my two iPad 2 orders halfway through our dialog). So it was surprising how thoughtful and respectful the vast majority of our investor interactions were, and how noticeably it differed from past actions of a similar nature. There were only about a dozen hateful or angry calls into our firm that I am aware of. By all accounts it appears our downgrade did not go unnoticed, so I am left to conclude that most found value in the wake up call, and it also suggests to me that AAPL has a high quality and classy investor base.

MB: Alright, Alex. Thanks much for your time. We’ll be watching how your call turns out. Good luck.

AG: No, thank you. And best of luck right back.

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From: benhorseman3/18/2011 2:14:05 PM
2 Recommendations   of 117889
 
Tapping into offshore cash
U.S.-based multinationals say repatriation tax holiday on overseas earnings would boost economy; others say it’s windfall for investors
By Mike Freeman, UNION-TRIBUNE

Friday, March 18, 2011 at 12:01 a.m.

signonsandiego.com 

This year, Qualcomm said it would spend $975 million to build a factory in Taiwan to manufacture low-power Mirasol display screens for e-readers and smart phones.

There are many good business reasons to construct the plant in Taiwan and not the United States. Asia is the heart of the flat panel display industry, led by manufacturers Samsung, LG, Toshiba and others. Glassmakers and other key suppliers are clustered there. Qualcomm already makes Mirasol screens at a small factory in Asia as part of a joint venture.

But lately Qualcomm executives have been talking about another reason they chose Taiwan: The company could tap some of the $13 billion in cash it has sitting offshore to build the factory without a tax penalty.

If it brought the money home to construct the factory in the United States, the company says it would have paid 15 percent to 20 percent in U.S. taxes before putting a shovel in the ground, making the plant significantly more expensive.

“What it really means is all that money that is offshore has a little label on it, and that label says don’t spend in the United States,” said Qualcomm Chief Executive Paul Jacobs at the company’s annual meeting of shareholders this month. “It’s 180 degrees from the policy that you’d think you would want to have, which is to try to encourage investment in the U.S.”

The San Diego wireless giant is part of a fledgling group of U.S.-based multinational companies that plan to urge lawmakers to allow them to bring offshore cash home without a substantial tax penalty.

The group is in advanced planning stages. Firms that are expected to participate include Cisco, Pfizer, Microsoft, Oracle and Apple.

Their pitch boils down to this: If a repatriation tax holiday is granted, more than $1 trillion held by foreign subsidiaries of U.S. multinationals could be brought home, providing stimulus to a fragile economy.

“The simple truth is there are few policy options left that will inject this amount of money into the economy and cost taxpayers next to nothing,” said Doug Thornell of SKDKnickerbocker, a public relations firm in Washington, D.C., advising the coalition of companies.

But any proposal for a tax holiday is likely to be controversial. It was tried about six years ago, with mixed results.

While some economists say it led to investments and jobs, others contend that nearly all of the repatriated offshore cash flowed to shareholders through stock buybacks and dividends — creating a windfall for investors instead of the spending on factories, equipment, research and job creation that lawmakers wanted.

Moreover, many multinational companies find themselves with stockpiles of offshore cash in part because they set up foreign subsidiaries to avoid paying high U.S. corporate taxes on their domestic operations, said Adam Looney, a senior fellow at the Brookings Institution in Washington, D.C.

“They have clearly found this is a way to reduce the amount they’re paying in taxes,” he said. “But one of the disadvantages is you end up with a rising amount of income that is stored abroad.”

In Qualcomm’s case, it had $13 billion in cash offshore and about $6 billion in cash onshore at the end of December 2010. In September 2009, it had $9.8 billion in offshore cash and $7.9 billion onshore. Domestic cash shrank because Qualcomm used it to buy back shares.

Tax policy is complicated. The United States taxes the worldwide income of U.S.-based companies at a 35 percent rate. But it doesn’t tax the income of foreign subsidiaries of U.S. firms as long as the earnings remain overseas.

For example, if a U.S. company’s foreign subsidiary is based in a country with a 20 percent corporate tax rate, then for every $100 the foreign subsidiary earned, it would pay $20 to the host country in taxes. No additional taxes would be due as long as the earnings stayed overseas.

But if the foreign subsidiary wanted to bring the remaining $80 to the parent company in the United States, it would face an additional $15 in U.S. taxes — the difference between the host country’s 20 percent tax rate and the 35 percent U.S. tax rate.

Qualcomm and other multinational companies think it would be good for the economy if this money could be repatriated without such large tax consequences.

“There’s $1.4 trillion that U.S. companies have so-called offshore,” Jacobs said at the Qualcomm annual meeting. “So you think about that with respect to the size of the stimulus package. These are real numbers, and so getting that money back into the United States would be very valuable for the U.S. economy, of course. So we’ve been out talking about repatriation.”

Last time there was a repatriation tax holiday, companies could bring home their offshore cash at a tax rate of 5.25 percent for one year in 2005. About 840 multinational companies took advantage of the holiday. The amount repatriated surged from an average of $62 billion during the previous five years to more than $300 billion in 2005, according to studies by economists.

Supporters of repatriation say the federal government collected taxes that it otherwise wouldn’t have. They also claim $187 billion of repatriated funds went to create or retain jobs, buy new equipment or pay down domestic debt. Qualcomm says it brought home about $500 million at the time and used it for acquisitions and hiring in California, North Carolina and Nevada.

But economists C. Fritz Foley of Harvard, Kristen Forbes of MIT and Dhammika Dharmapala of the University of Illinois found in a joint academic study that every $1 increase in repatriations during the tax holiday was associated with a 60- to 92-cent increase in payouts to shareholders, even though shareholder distributions were not a permitted use of repatriated funds under the legislation.

The report was titled “Watch What I Do, Not What I Say: The Unintended Consequences of the Homeland Investment Act.”

In addition, the 2005 legislation says that it was a one-time tax break that was not meant to be repeated. The rationale was that if multinational companies came to expect periodic tax holidays, they’d shift even more of their earnings offshore to avoid taxes until the next one comes around.

“There is really no point in having a tax on repatriation when every five or 10 years you give a tax holiday,” said Alan Auerbach, an economics and law professor and director of the Robert C. Burch Center for Tax Policy and Public Finance at the University of California Berkeley. “One thing virtually all economists would agree on is that if you think this kind of tax on repatriation is bad, it would be better to remove it permanently and reform the tax system rather than have these holidays every few years.”

Qualcomm has about a dozen foreign subsidiaries. Its overall corporate tax rate for its 2010 fiscal year was 20 percent, according to its annual report. The main reason it didn’t pay a higher rate was much of its income was generated at foreign subsidiaries in countries with low tax rates.

A significant portion of Qualcomm’s offshore cash comes from its cell phone chip business, which competes globally not only on how well its chips work, but also on price, said company President Steve Altman. The company competes with foreign firms from low-tax jurisdictions. “We have to stay at a level playing field,” he said.

The repatriation issue will likely be debated in the context of overall corporate tax reform. The Obama administration has said it would favor reform that lowers corporate tax rates as long as the burden is not shifted to individuals or other parts of the economy.

mike.freeman@uniontrib.com (760) 752-6751

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To: Rich Bloem who wrote (100646)3/18/2011 2:35:29 PM
From: Maurice Winn2 Recommendations   of 117889
 
Rolling blackouts is a ridiculous way to ration electricity. Just put the price up to whatever it takes to keep the lights on. <For instance all companies in Japan are undergoing rolling power shutdowns and some companies just cannot function having their power off for 5 hours per day. >

Having some kid sitting in front of a heater playing Nintendo isn't as valuable as having a production line rolling. The Nintendo players can put on a warm jacket and Valenki Knitgrrl boots if they are cold.

Mqurice

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