The "commercial" production is nothing more than a large scale trial using a fab that Foxlink and Q built back in 2009. The billion dollar fab with the volumes capable of supporting a tier one or tier two customer isnt scheduled to come on line until the end of this year.
If you expected them to be introducing high-volume ereaders right now, you simply werent paying attention to management. As for smartphones, management has repeatedly stated that this is not a near-term event.
badgert3 -- Regarding stock buybacks, management, as noted in the conference call, typically buys back shares by selling put options. The current price of $64.10 (around 11 am eastern time) is not, in my view, a bargain price that would justify a put option sale. You need a really bad market day, perhaps brought about by further turmoil in European economies, that would cause the price of QCOM and other shares as well to fall another 5 to 10 percent. If the shares fell closer to $61 and the company sold in-the-money put options with a striking price of, say $65, with expiration in October or the following January, then the potential benefits look very interesting.
That's an interesting proposition. Isn't that what they did?
It takes two to tango. Analysts mostly use calls to milk that which is presented to them. They know they aren't going to get certain answers but persist in their shallow prodding. It's all just the nature of their business. All have an agenda. In Qualcomm's case, it seems to be to present a good picture based upon the prosperity of others rather than their own direct actions.
At times like this, I'd just like to hear more about actions rather than outcomes. That's how one controls a conversation. By the time outcomes are impacted actions have long been taken.
ps A year ago I pondered Qualcomm getting into the fab business. Given the challenges with Mirasol, I concluded it was too early. I now see that it is never too early to garner the experiece one need for one's success, especially when you have mustered a substantial army. Good point about accent of the negatives. Doesn't it always come down to "us verses them"?
We shall survive and prosper. It's a good day to move stuff around.
Intel's Medfield Atom makes its debut in Lava's Xolo X900
Intel finally gets inside a smartphone By Lawrence Latif Thu Apr 19 2012, 15:34
CHIPMAKER Intel has chosen India as the first market to receive a Medfield Atom powered smartphone in Lava's Xolo X900.
Intel and Indian handset maker Lava announced their intention to ship an Atom smartphone at Mobile World Congress in January. However Lenovo's K800 received all the attention, so Lava's Xolo X900 slipped under the radar to become the first shipping smartphone to feature Intel's Medfield Atom processor.
Lava's Xolo X900 smartphone has a 1.6GHz Atom processor that supports Hyperthreading with the graphics core clocked to 400MHz. According to Intel, those specifications are good enough to power HD 1080p resolution video playback through the device's HDMI port, while the device's 8MP camera can take 10 pictures in under a second.
Externally, the Lava Xolo X900 has a 4.03in LCD screen with the factory-encased battery giving it a claimed eight hours of talk time and five hours of 3G web browsing. Intel and Lava will be judged on how well battery life stacks up against ARM-based smartphones with 4in screens, because ARM has always claimed that the X86 chip architecture is not efficient enough for smartphones and tablets.
One place where Lava did slip up is its decision to ship the Xolo X900 with Android 2.3 Gingerbread, however the firm said it will roll out an update to Android 4.0 Ice Cream Sandwich shortly, though it wouldn't be drawn on a specific date.
Intel's decision to focus on Lava and Lenovo in the Indian and Chinese respectively is a good one. Although prestige markets such as the US and Europe sound good in a press release, the general thought among industry watchers is that China and India will be the largest smartphone growth markets, meaning that Intel has an opportunity to win new business rather than take market share from ARM.
If the "large scale trial" you describe comes from the initial factory built in 2009, that is good news in one sense. In mass production, the general rule is that you get one quality from one factory. The pilot or original factory may have a lot of defects that might be corrected or moderated in the new factory. That would help explain a low yield. I simply cannot believe that the first factory built for Mirasol was so small that it would have a tough time filling anything but small orders.
I was a buyer in the after-hours market and this morning for long term hold. Also fattened up Jan13-50s and Jan14-60s and 65s. Hope to start to roll out of the Jan13-50s if/when we see 68 again or by November if we don't. That being said, following my lead has NEVER been a good thing :)