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   Technology StocksQualcomm Moderated Thread - please read rules before posting

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To: benhorseman who wrote (158571)6/16/2019 9:45:25 PM
From: Doug M.
2 Recommendations   of 164543
Thanks - this one is good - the others are as well:

<<2. Antitrust Duty to License IP to Competitors?

The court concluded that Qualcomm had an antitrust duty to license its modem chip rivals under the Supreme Court’s decision in Aspen Skiing, relying heavily on the fact that Qualcomm had previously licensed its rivals, but later determined that it was more profitable to license solely at the OEM level. It is unclear from the evidence cited in the opinion what role changes in the U.S. law on patent exhaustion may have had on Qualcomm’s licensing practices over time. But beyond that key factual question, there are purely legal reasons to question the court’s embrace of Aspen Skiing to impose a duty to license intellectual property given that the case did not involve the licensing of intellectual property. Moreover, the Federal Circuit has held that the antitrust laws do not impose any duty to share intellectual property and the relevant Ninth Circuit precedent has been widely criticized. 15>>

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To: benhorseman who wrote (158571)6/17/2019 12:42:26 AM
3 Recommendations   of 164543
while her colleagues Commissioners Rohit Chopra and Rebecca Slaughter issued statements praising the decision as “a thorough accounting,” “meticulous,” and a huge victory “for every American who believes in competitive markets.” 3 When it comes to this case, the Commission appears to remain starkly split.

Rohit Chopra....... He was previously Assistant Director of the Consumer Financial Protection Bureau. He was appointed by the Secretary of the Treasury as agency's first Student Loan Ombudsman, established by the Dodd–Frank Wall Street Reform and Consumer Protection Act. [1] On October 19, 2017, the White House announced its intent to nominate Chopra to fill the open Democratic seat on the Federal Trade Commission.

Consumer Financial Protection Bureau.............Liz Warrens's baby

Rebecca Slaughter........Rebecca Kelly Slaughter was sworn in as a Federal Trade Commissioner on May 2, 2018. Prior to joining the Commission, she served as Chief Counsel to Senator Charles Schumer of New York, the Democratic Leader. A native New Yorker, she advised Leader Schumer on legal, competition, telecom, privacy ...

Chief Counsel to Senator Charles there's a confirmed leftist if I ever saw one

as I've said many times.........PEOPLE = axiom which seems to escape many on this board

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From: benhorseman6/17/2019 6:17:13 AM
   of 164543

Even After Apple Settlement, Risks Abound for Qualcomm Stock Maybe the biggest issue here is that QCOM stock still is largely a smartphone play
By Vince Martin, InvestorPlace Contributor Jun 17, 2019, 5:16 am EDTI'm

The Qualcomm (NASDAQ: QCOM) roller coaster continues. Qualcomm stock has mostly traded sideways for much of this decade — but with quite a bit of volatility. Even by those standards, however, the last two months for QCOM stock have been something to see.

Source: Karlis Dambrans via Flickr

On April 15, Qualcomm stock closed below $58. Investors were worried about the company’s exposure to its slowing semiconductor segment, regulatory inquiries, and a high-stakes legal battle with Apple(NASDAQ: AAPL). The next day, Qualcomm announced a favorable settlement, surprising investors. That drove QCOM stock up 23% and beyond. It would touch $90 in early May — a cool 55% gain.

Since then, however, QCOM has fallen by nearly 30%. Trade war concerns have hit the stock and the semiconductor space more broadly. A negative FTC ruling added pressure last month, and again last week.

The sell-off might seem overdone. As I wrote recently, Wall Street seems to think so, with a consensus price target of $96. And I see the case. But any investor looking to time the bottom here — with QCOM stock in the $68 range — needs to realize that all for the noise surrounding the Apple relationship, there are many other risks lurking. Some already are playing out — and some may be yet to come.

Chip Sector ProblemsOne clear risk is that Qualcomm stock is going to be exposed to general sentiment toward semiconductor stocks. That sentiment has turned negative of late — one reason why QCOM stock has tumbled — and seems unlikely to get much better soon.

Indeed, cautious guidance from Broadcom (NASDAQ: AVGO) after Q2 earnings on Thursday seems likely to only add to the pessimism. AVGO stock fell more than 7% in after-hours trading and QCOM stock dropped 1.8%. Broadcom’s broad reach gives its management credibility in judging the outlook for much of the semiconductor industry. Its guidance undercuts the predictions of a second-half rebound made by Nvidia (NASDAQ: NVDA), Intel (NASDAQ: INTC) and other chip leaders.

That might seem a short-term problem. But it also means QCOM, in the context of the sector, isn’t quite as cheap as it used to be. A 13x forward P/E multiple sounds inexpensive — but INTC is at 10.3x. Even NVDA is at 21x, with better end markets for growth in datacenter and gaming. QCOM not that long ago was one of the cheapest chip stocks out there and that’s simply not the case anymore.

Is Apple Done?As my InvestorPlace colleague Dana Blankenhorn detailed last month, at least part of Apple’s willingness to sell came from Intel’s inability to deliver a baseband modem of its own. With nowhere else to go, Apple was forced to pony up.

But how long will Apple be willing to sit quietly? Already, rumors are swirling that Apple is going to buy Intel’s modem business, presumably as a first step toward bringing development in-house. Whether Apple makes that move or not, it’s not going to sit idly by forever under Qualcomm’s terms.

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From: benhorseman6/17/2019 6:39:10 AM
   of 164543

What US trade ban? Huawei has 56,492 patents and isn’t afraid to use them now
By: Bloomberg |
Published: June 17, 2019 11:22:05 AM

Qualcomm and Huawei are seen as two of the biggest players developing 5G that could bring not only faster speeds
Huawei is in protracted licensing talks with phone-services provider Verizon Communications Inc. and is in a dispute with chipmaker Qualcomm Inc. over the value of patents. Huawei also lodged claims against Harris Corp. after the defense contractor sued it last year alleging infringement of patents for networking and cloud security.

“Patents are, at their basic level, weapons of economic warfare,” said Brad Hulbert, a patent lawyer with McDonnell Boehnen Hulbert & Berghoff in Chicago. “They’re being hurt by the sanctions that the Trump Administration imposed and saying ‘You have hurt us and our ability to sell, and we can hurt back.’ It’s saber-rattling.”

Broader national security concerns also hang over this technology battle. In some circles Huawei’s outsized role as a supplier to next generation, or 5G networks makes it a potential threat either as an espionage agent or network disruption tool. Huawei has not only become a flashpoint in the middle of a 5G arms race, it’s also one of several companies targeted in President Donald Trump’s ongoing trade dispute with China.

Trump signed an order in May that’s expected to restrict Huawei from selling equipment in the U.S. Shortly after, the Department of Commerce said it had put Huawei on a blacklist that could forbid it from doing business with American companies.

For its part, the Asian nation sees Huawei as a potent symbol of its evolution from the world’s factory to a technology powerhouse, while the U.S. claims the tech company steals inventions from American firms.

“Huawei has invested a lot of money and they want to be recognised,” said Jim McGregor, a Mesa, Arizona-based technology analyst with Tirias Research. “Huawei is just playing out standard business practices for the wireless industry.”

Patent disputes are common in the tech industry, and the coming revolution predicted by advances in “5G” wireless technology promises to bring even more. Traditional players like Ericsson AB and Nokia Oyj are ramping up efforts to get more money from their patents. Qualcomm is appealing a ruling in a lawsuit by the U.S. Federal Trade Commission that threatens the licensing program that accounts for the bulk of its profits. Huawei and Samsung Electronics Co. ended a two-year royalty fight in February.

Qualcomm and Huawei are seen as two of the biggest players developing 5G that could bring not only faster speeds but bring new capabilities including remote surgery via robots and self-driving cars that talk to each other. The global ban on Huawei equipment promoted by Trump has roiled telecom companies worldwide. It’s a reminder, McGregor said, that 5G relies on both the U.S. and China.

“Huawei, over the past couple of years, has really ramped up its efforts in not only patents but in the standard bodies, particularly in wireless technology,” McGregor said. “They can say ‘whether you’re using our equipment or Ericsson’s equipment, you’re using our inventions. You still have to take a license.’”

The Chinese government and companies have been investing billions in high-tech research, and have the patents to show for it. Last year alone, Huawei received 1,680 U.S. patents, making it the 16th biggest recipient, figures by Fairview Research’s IFI Patent Claims Services show. Huawei’s total portfolio of active patents and published applications is 102,911, according to Anaqua, an intellectual property-management software firm.

Royalty demands against cell-phone carrier Verizon by Huawei, reported Wednesday by the Wall Street Journal, could be become part of the political battle, said Peter Toren, a Washington-based patent lawyer who consults with other firms and companies on licensing and litigation.

“Given Huawei’s position and the pressure they are feeling, they have nothing to lose at this point than to go after American companies in the patent arena,” Toren said. “They get poked in one area and they’re going to stick back in another to show there are consequences for this continued pressure.

“I don’t see how the government can stop them,” he said. “They have ownership in the patents.”

Verizon, while declining to comment on specific talks, sees the negotiations as more than just a typical patent-licensing discussion.

“These issues are larger than just Verizon,” the company said in a statement. “Given the broader geopolitical context, any issue involving Huawei has implications for our entire industry and also raise national and international concerns.”

Officials with Huawei had no immediate comment.

McGregor said it makes sense for Huawei to demand royalties from Verizon because it’s the largest cell-phone carrier in the U.S. Verizon claims it’s the first to offer speedy new 5G services for mobile phones, though it’s only available in a limited area.

“If they don’t go to them within a reasonable amount of time and at least try to enforce those patents, those patents become unenforceable,” McGregor said. “You have to pick a starting point. It’s better to pick one of the major players and it makes sense to pick one of those who’s rolling out that technology.”

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From: benhorseman6/17/2019 6:59:56 AM
   of 164543

US Chip makers seek easing of Huawei ban: report

Mike Murphy

MarketWatchJune 17, 2019

Major U.S. chip makers, including Intel Corp. , Qualcomm Inc. and Xilinx Inc. , have quietly lobbied the Trump administration to ease its ban on sales to Chinese tech giant Huawei Technologies Co., Reuters reported Sunday. One source told Reuters that the aim was not to help Huawei, but to prevent harm to U.S. companies. Reuters said Huawei spent about $11 billion buying components from U.S. companies in 2018. The Trump administration announced the ban in May, after trade negotiations between the U.S. and China stalled. Earlier this month, the acting White House budget chief sought to delay implementation of the ban, the Wall Street Journal reported, arguing that the burden would fall on U.S. companies that did business with Huawei.

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From: benhorseman6/17/2019 7:11:43 AM
4 Recommendations   of 164543

LG: We do not expect supply chain disruption if Qualcomm agreement isn’t met

Update: June 13, 2019 at 11:28 a.m. ET: An LG spokesperson has reached out to Android Authority to clarify the situation. According to LG, the company does not expect there to be a disruption in the supply of 5G chips from Qualcomm. In fact, whether or not there is an agreement in place by June 30 “has no bearing on the supply agreement.”

Original article: June 12, 2019 at 4:36 a.m. ET: Sales of LG’s V50 ThinQ 5G smartphone are reportedly in doubt after negotiations to renew a chip licensing deal with Qualcomm fell through.

According to Reuters, the South Korean firm has completed a court filing in the U.S. opposing Qualcomm’s bid to set aside a landmark antitrust ruling against the chip designer.

“If Qualcomm does not participate in negotiations with LGE in accordance with the court’s order, LGE will have no option but to conclude license and chipset supply agreements once again on Qualcomm’s terms,” read an excerpt of the filing, according to the newswire.

Last month’s antitrust ruling found that Qualcomm had charged “onerous” fees to companies wanting to use its patents. Judge Lucy Koh also ruled that the U.S. firm needs to sign new patent licensing deals without the offending terms.

LG is calling on Qualcomm to abide by this ruling, while the Qualcomm seemingly thinks that it’s still the status quo for now until it’s exhausted its options to appeal the verdict.

It’s unclear when this impasse will come to an end, but LG is certainly in a bad position. If the court battle isn’t resolved soon, then the South Korean manufacturer will be forced to delay the LG V50 ThinQ and potentially other 5G-related devices too. It isn’t clear if the deal relates to 5G technology only or 4G devices as well, but an analyst told Reuters that LG’s mobile business could suffer “catastrophic” damage if a deal isn’t reached. This suggests that LG’s 4G devices, which forms the bulk of its smartphone shipments, are also affected by the legal battle.

This battle could also be a sign of things to come if Qualcomm’s deals with other manufacturers are up for renewal soon. It’s one thing for LG duke it out with Qualcomm, but it’s another matter entirely if other players decide to challenge the chipmaker in accordance with the antitrust ruling.

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From: benhorseman6/17/2019 7:18:46 AM
   of 164543

Intel and Qualcomm are lobbying against Huawei ban fearing losses of $11bnThe biggest victims could be the those the rules sought to protect

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From: Bill Wolf6/17/2019 7:35:07 AM
   of 164543
Huawei has a lot of ammunition for a patent fight
The Chinese company has started a battle with Verizon over patents. Susan Decker of Bloomberg points out that it has many more arrows in that quiver to fight back against U.S. efforts to squash its business.
Huawei has 56,492 active patents worldwide, according to the research firm AcclaimIP. They cover telecom, networking and other high-tech areas. Last year alone, Huawei received 1,680 U.S. patents.
And the company is showing more willingness to use them as weapons. It has already pressed Verizon to pay licensing fees for equipment that the Chinese company says infringes on 238 of its patents. (Though Verizon doesn’t use Huawei equipment itself, some of its vendors do.)
Huawei has a lot of incentive to fight back. Restrictions imposed by the Trump administration are expected to take a significant toll on its business: It’s reportedly preparing for a drop in global smartphone sales of as much as 60 million units, according to Bloomberg.
More: Huawei could build a decent phone without U.S. components — but for now, it can’t create a great one.

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To: Bill Wolf who wrote (158579)6/17/2019 7:42:10 AM
From: Bill Wolf
   of 164543
Huawei slashes revenue forecast amid continued US pressure
Published 3 hours ago
Arjun Kharpal

Key Points

Huawei CEO and founder Ren Zhengfei said the company’s revenue will be about $100 billion for 2019 and 2020.

Ren said that Huawei will reduce its production capacity which will equate to a $30 billion hit to revenue versus its forecasts.

He also said that over the next two years, Huawei will “do a lot of switch over of different product versions,” but did not specify if it meant finding replacements for American components.

“We are strong, I think there is no way we can be beaten to death,” he added.

“In the next two years, I think we will reduce our capacity, our revenue will be down by about $30 billion dollars compared to forecasts, so our sales revenue due this year and next will be about $100 billion,” Ren Zhengfei, founder of the telecoms equipment giant said, adding that the firm will regain its “growth momentum” after 2020.

Huawei Expects $30 Billion Revenue Hit From U.S. Clampdown
It is the first time the Chinese tech giant has quantified the potential impact of American actions against it
By Dan Strumpf
June 17, 2019 6:12 a.m. ET

The U.S. campaign against Huawei Technologies Co. is taking a toll, with the company’s founder forecasting a hit to revenue of about $30 billion over the next two years.

Ren Zhengfei said he expects revenue of about $100 billion for Huawei in 2019, a decline from last year’s roughly $107 billion, following lower-than-expected growth in the wake of a U.S. export blacklisting and other actions against the Chinese technology giant. Mr. Ren had earlier targeted 2019 revenue to come in around $125 billion. The privately held company selectively discloses its finances, though it publishes an audited annual report.

Huawei, the world’s largest maker of networking equipment and the No. 2 maker of smartphones, is reeling following a Commerce Department entity listing last month that restricts the ability of suppliers to sell it American technology. Huawei procured $11 billion worth of U.S. technology last year out of a total procurement budget of $70 billion, according to the company.

Mr. Ren’s comments provide the first window into how the blacklisting is weighing on the company’s financial outlook. Huawei has grown sharply over the years, as it made quick inroads into networking equipment and smartphones, with revenue growing 20% to more than $100 billion last year. In the first quarter it surpassed Apple Inc. to become the second-largest maker of smartphones, behind only Samsung Electronics Co.

The company was poised to capitalize heavily on investment in forthcoming 5G wireless technology, which is set to roll out in countries around the world in the next few years. But before the trade blacklisting, Washington had been pushing allies to avoid using its 5G gear because of fears it could be used by Beijing to spy or disrupt communications networks. Huawei has long denied that, and Mr. Ren has said he would refuse any order to spy on customers.

Mr. Ren made the remarks at a roundtable event titled “Coffee with Ren,” at the company’s Shenzhen headquarters, the latest in a public-relations push by the formerly reclusive founder. On the panel were also two Americans, the investor George Gilder and the former Massachusetts Institute of Technology professor Nicholas Negroponte.

Last week, The Wall Street Journal reported that the company is delaying the release of its $2,600 foldable Mate X smartphone to September from a previously expected launch of June, due in part to the need to improve the screen. Problems with the screen on Samsung’s Galaxy Fold smartphone led the company to postpone that device’s launch earlier this year. Huawei also shelved the launch of a laptop, its first device to be pulled since the ban.

Huawei’s U.S. customers are also taking a hit. Last week, U.S.-based chip giant Broadcom Inc. said its revenue will be $2 billion less than expected due to the restrictions on supplying Huawei.

Separately, Mr. Ren said the company doesn’t foresee any future business spinoffs or sales following the announcement earlier this month that it would sell its stake in its undersea-cable business, Huawei Marine Systems Co. He said the decision to sell the stake was made long ago and wasn’t related to recent U.S. actions.

“It’s not a decision we made recently,” he said.

Write to Dan Strumpf at

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From: Bill Wolf6/17/2019 8:05:35 AM
   of 164543
Tech leaders and founders

Huawei CEO says he did not expect such a ferocious, large-scale US attack on the Chinese telecoms giant

The Chinese company is unlikely to see much revenue growth with total sales expected to remain at around the US$100 billion level in 2019 and 2020

Li Tao

Published: 3:54pm, 17 Jun, 2019

Updated: 6:07pm, 17 Jun, 2019

Ren Zhengfei, founder and chief executive of Huawei Technologies, said he had not expected such a ferocious US attack on the company and that the move to add the world’s largest telecommunications equipment vendor to a US trade blacklist was expected to wipe out US$30 billion of sales growth.

Acknowledging for the first time the likely impact on Huawei of US action, Ren said on Monday that total revenue was now expected to remain stagnant at around the US$100 billion level in 2019 and 2020. He also said overseas smartphone sales had dropped 40 per cent, without specifying the time period.

“We did not expect that the US would attack us with such determination and on such a large scale,” he said during a panel discussion at the company’s headquarters in Shenzhen. “We made some preparations, such as for the core business part, but we have been unable to protect some of the secondary parts [of our business].”

Big Tech

Huawei wins half of China Mobile’s 5G network contracts while Ericsson picks up a third

On June 6, China granted commercial 5G licences to the country’s three telecommunications network operators and the nation’s cable network giant

Li Tao

Published: 11:22am, 17 Jun, 2019

Updated: 6:10pm, 17 Jun, 2019

China’s largest telecommunications operator China Mobile has awarded half of its 5G network equipment contracts to Huawei Technologies, in a boon for the Chinese telecoms giant after being squeezed in overseas markets by a US decision to add it to a trade blacklist.
The award of the 5G licences came after the US government put Huawei on a trade blacklist last month, which has severed the Shenzhen-based company’s access to American hi-tech suppliers, including semiconductor firms Qualcomm and Intel as well as software providers Google and Microsoft.

“Huawei is fully prepared” for the roll-out of commercial 5G networks in China, the company said in a statement after China granted the 5G licences.

Big Tech

Huawei’s Richard Yu may have the toughest job in the tech world - taking on Apple without Android

Yu’s career success in Europe earned him a place on the company board, the small 17-person circle that has the final say on Huawei’s entire business

Despite a stellar career, Yu’s off-the-cuff remarks have also brought him some trouble over the years

Li Tao

Published: 7:30am, 16 Jun, 2019


China’s top economic planner refuses to rule out playing rare earths card against US

The National Development and Reform Commission has again hinted that it may block America’s access to the strategic resources as the trade war drags on

China produces 90 per cent of world’s rare earths and has warned it will not allow them to be used to ‘curb country’s development’

Sarah Zheng

Published: 7:37pm, 17 Jun, 2019

Updated: 7:37pm, 17 Jun, 2019


Lessons from an old trade war: China can learn from the Japan experience

In the last half of the 20th century US worries about a rising Japan led to tariffs and technology mistrust

Differences in the Chinese experience may predict a different outcome

Wendy Wu

Published: 12:00am, 16 Jun, 2019

Updated: 12:00am, 16 Jun, 2019

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