LG: complaining about chip ban

[difenbaker]

LG wants end to Qualcomm chip ban

Most likely to hurt from ITC ruling

By Tony Dennis: Sunday 10 June 2007, 10:34

KOREA'S LG has joined the chorus of complaints about the US's recent decision to ban import of 3G phones containing Qualcomm chips. AT&T could be biggest winner.

The world's fifth largest manufacturer of mobile phones, LG, is going to hurt most from the ban since it relies heavily on the US Cdmaone market for its sales.

That's not to say that Samsung and Motorola won't suffer – only that they'll suffer less. According to market watcher, Isuppli, the ban will hit some 4.2 million handsets in 2007.

Significantly – although it has joined in calls to have the ITC ban lifted - AT&T (the former Cingular) could come out smelling of roses.

That's because it isn't heavily reliant of Qualcomm chip based handsets and could feasible source 3G handsets from Nokia and Sony Ericsson which use alternative products including those from TI.

Plus – and this is a strange one – AT&T just so happens to be the sole US supplier of the Apple Iphone. The Iphone's Achilles heel is that it doesn't support 3G. So the lack of new 3G handsets should help boost sales.

Qualcomm CEO Paul Jacobs has declared that, "We will ask the White House to veto [the ITC] decision and avoid turning back the clock on the tremendous gains that have been achieved in mobile broadband communications, disaster preparedness and emergency response."

Unfortunately for Qualcomm, Bush might not wish to be seen interfering in the legal process – especially since both Broadcom and Qualcomm are American based companies.

The President has less than 60 days to make up his mind. µ

http://www.theinquirer.net/default.aspx?article=40222

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[carcomptoy]

I think Broadcom and Qualcomm should just settle instead of doing a ban. Especially since they're both American companies, they shouldn't be competing and trying to kill each other so cutthroat. While it's almost funny and ironic that all the other big companies are affected save for my personal favorite, it is still definitely a big misfortune that can't be laughed at.