Qualcomm Incorporated (QCOM) Message Board

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Technology Stocks : Qualcomm Incorporated (QCOM)

QCOM 177.51

-0.6%

3:56 PM EDT

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To: John Hayman who wrote (139745)	10/31/2005 9:18:13 AM
From: 100cfm	Read Replies (1) of 152472

* In China Qualcomm has given exclusive chipset customers lower royalty rates for shipments inside China. For shipments outside China the rate is higher to compensate for the discount. * This is the only instance that we are aware of where chipset customers benefit from a lower royalty rate and clearly only applies in China. * Qualcomm has repeatedly stressed that outside of this exceptional arrangement all licensees pay essentially the same rate with only negligible variation. I think this statement is probably inaccurate since Q in it's response has already admitted to the accusation by defending against the accusation by stating that "it is simply a complaint about legitimate and lawful price competition". If the Eu finds against Q on this issue I wonder if Q has an out in their contract that would let them raise/remove the discount to it's exclusive chipset customers. Rather than lowering their rate for everyone.?? Thus no direct financial impact, other than those who are buying Q chips solely for the discount, who would then presumably buy from the competition.

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