Kerrisdale wrote a silly short report against Qualcomm $QCOM.First half of the report is all about how Qualcomm will lose the FTC case because of their "monopolistic practices": Qualcomm has gotten away with this anomalously (indeed, “humongously”) lucrative licensing for so long is simple: it has such a dominant position in the markets for CDMA and premium LTE modem chips that OEMs, though regarding Qualcomm’s licensing fees as unfair and thus in violation of its FRAND commitments, felt they had no choice but to pay up."But then later in the report, they argue that regardless of the outcome of the FTC case, Qualcomm's business outlook is poor, completely undercutting their logic that Qualcomm is engaged in extortionary pricing:"As recent worries over Apple’s iPhone sales have shown, the global smartphone market is maturing, as consumers keep old devices for longer and balk at paying higher prices. Meanwhile, though Qualcomm still produces the best wireless modems, competitors like Intel and MediaTek have become more capable, while major Qualcomm OEM customers Samsung and Huawei have increasingly moved to insource their modem production, starting with lower-end devices but threatening to further displace Qualcomm as time goes on. Weak end-market growth coupled with intensifying competition will suppress Qualcomm earnings power for the foreseeable future even without considering the ramifications of the FTC case."First they say Qualcomm has so much market share that it's abusing OEMs forcing them to pay up, that OEMs have no other options, but then according to their own research, they admit this actually isn't the case, the industry is actually competitive, Intel and MediaTrek are catching up and offering alternatives, Qualcomm is losing market share, and OEMs are insourcing - oh so their counterparties do have options now, and the industry is competitive after all? It's either a competitive industry, in which case the OEMs have options and aren't being extorted, or it's not, in which case Qualcomm would have a wide moat and pricing power, meaning the business outlook isn't poor absent the regulatory risk. Seems to me the industry is competitive, OEMs just don't like the deals they made with Qualcomm, and now are trying to use a nebulous legal standard to pay less after the fact. $QCOM, QUALCOMM Incorporated / H1 Notes via user @ Enchilada ManBuy the dip in QCOM stock. A rebound back to $55 - $58 will follow.