In recent weeks, the Chinese market has grown murky, with some analysts saying that CDMA will never play a role in China. Easy to see how a report like that could knock the stuffing out of a stock. Remember that a lot of people buy stock based on the stories they've heard about how it's gone up. You'd probably panic and sell. But as investors, we need to look under the rug and see what's going on here.
China is the biggest market in the world.
The Chinese would be foolish to give it away on a platter. They're being coy. Qualcomm has not been eager to sign on for this. It is no longer a manufacturing company and it cannot build a Chinese factory to make handsets, for example. But Qualcomm must offer something to the Chinese government.