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Technology Stocks : Qualcomm Moderated Thread - please read rules before posting
QCOM 177.35+0.6%9:32 AM EST

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To: rkral who wrote (62481)4/12/2007 7:59:30 AM
From: waitwatchwander   of 197091
 
---> Did Nokia under-report WCDMA handset sales when making their royalty payments?

3% of what ??? I see Nokia uses the term "aggregate handset sales". How is that defined?

Here's an example that might work. Nokia sells a handset to an operator for $200 and charges an additional $50 in marketing fees. They send a royalty cheque to Qualcomm for $7 (3.5% of $200). If they define aggregate handset costs as both costs ($250), then they can say their royalty rate on aggregate handset sales is 2.8%.

The above is somewhat like what they are now doing with ODM's (or whatever Eric calls them) for their cdma handsets.

Message 23448882

As you previously implied, the answer could also be hidden inside Qualcomm's books.
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