Originally posted by Lanbrown
Since GSM has more market share, 86% or so globally, the R&D is divided over a larger user base because they sell more phones, which also decrease the cost of the components because of the higher volume. So to get a CDMA phone with the same technology is going to cost more, the CDMA carriers don't like this and want cheaper phones.
If SE sold that phone now, it will be obsolete within a year. So they may never see a profit from that phone in the US and why not take the hit now rather then every quarter.
Why? because as you said the R&D cost is high, and since that is already spent, they might as well sell them and (maybe) reduce the amount of money lost?
Just because the carriers want them for less, doesn't mean they have to sell them for less - its ultimately the customer's decision how much they want to spend for a phone, and there are a number of people who are willing to pay a premium for a bluetooth phone and who live in markets where no bluetooth phones are currently offered.
The phone may be obsolete in a year, but given the paucity of the handset choices for cdma, it could remain a popular choice for 2 or 3 years. Hell, people are still buying moto 720's.
There isn't a substantial market. Most of the rural areas are covered by third parties and they already or will offer TDMA, GSM and CDMA.
So now the 33% of the *current* market that Verizon and Sprint hold is not significant? Huh? I don't know how many cell phone users there are overall, but we are talking about *millions* of customers here.[/B][/QUOTE]
GSM/TDMA market share is going up, while CDMA is going down.
I repeat, I am not questioing long-term decisions. Maybe this is true. Maybe cdma will drop off the face of the earth in two years. Some people argue that cdma's 3g network is/will be better than gsm, but I will go along with you for the sake of discussion.
I am not questioning SE's long term decision. All I am questioning is their current plans with the current phones that they have already developed.
I think this has gone far enough, though, so I'm done.