E Market Briefing For Monday, April 22

  

 

This year is a technology transition time. I've regularly emphasized watching 5G become a reality starting next year. There's little reason to be a first adopter of the initial devices becoming available this year. 

So we want to see the market coalesce a before dropping dollars both on stocks (or on devices) that may or may not be useful to you as yet. At the same time, by the time 2nd or 3rd generation 5G hardware and services (more efficient and reliable) are out, most stocks will already have advanced and discounted that (as investors sort-out 'winners').

  

Friday we heard that Apple is paying Qualcomm a high $9 royalty per iPhone (or at least more than the $7.50 they disputed originally). If in fact that's true, and especially if they paid a few Dollars per iPhone for other patent royalties; then you 'could' have a $5-6 Billion windfall for Qualcomm resulting from the global litigation settlement.  

A subtext to this settlement might be how important (perhaps why they caved) Apple sees 5G technology to the future. 5G seems set to drive a second tidal wave of change; as you know; way beyond smartphone or other devices. Next-gen wearable computing; contextually-sensitive voice-interfaces; smart cars; connected health services.. all soon will be relying on 5G. And that's regardless of the controversial nature of microwave or RF interference or ramifications, which are out there (a correlation with crowd-suppression control by sounds on frequencies in that range is occasionally heard; because a US Army weapon used for crowd dispersion as far back as Iraq is cited). However, whether or not there is valid concern about 'big brother' with 5G on utility poles is not our focus for now; but rather the constructive broad applicability.  

Speaking of AT&T, there is a big story not covered that I'm aware of. One key reasons DirecTV (conventional satellite) has continued to survive, is 'Sunday Ticket'; as AT&T has a lock on it. As I have said (remains the case); DirecTV Now (the streaming service), has at least a better chance for eventual success, 'if' they migrate the services together (essentially ending satellite delivery; or making it a pricier stepchild for rural or even foreign language customers).  

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Moon Kil Woong 1 month ago Contributor's comment

The Apple Qualcomm deal is a marriage of convenience more than anything long term or stable. They both didn't want the risk of a drawn out court battle and having to morph their business around each other at great cost. That said, they both will be looking for alternatives and they both are not fair players. Expect war to emerge again once one finds out the other doesn't need them.

Duanne Johnson 1 month ago Member's comment

Well said.