QCOM most probably just won the CDMA chipset game as NOK and Sanyo announced to merge their respective CDMA handsets businesses into a joint-venture. NOK/Sanyo JV would hold the #2 position in CDMA handsets after LG, putting Samsung in #3 position. This could be the last nail in coffin for the non-QCOM CDMA chipset consortium. NOK will most probably end up utilizing QCOM part as is the case with Sanyo currently. What it means that the Royalty King aka QCOM will continue its reign on the CDMA profilieration making nice healthy-margin on every CDMA handset sold in the world.
There are not many royalty based models in tech (MSFT, RMBS, TSRA..to name a few) but one of the best and most secure is QCOM. QCOM has never lost a lawsuit in its history. Companies like QCOM deserve premium valuation- where else can you get a 45% operating margins. Investors should always look out for opportunities to buy a name like QCOM whenever it's on sale.