<I'm just wondering when we reach the point where more of revenue turns into net income rather than less. In other words when does the expense side plateau while the revenue keeps soaring thus dropping an increasing amount to the bottom line.>
There does seem to be insatiable voracious expense growth. There is obviously a need for lots of R&D as technology keeps on charging ahead, but I get the impression that the costs are not as tightly controlled as they were. In the 1990s, $10 million was real money. Now, $1 billion seems to go down the gurgler as easily as $10 million used to. Maybe everyone thinks they are entitled to $millions.
Doubling sales shouldn't result in a doubling of expenses. Sales are royalties, software and cloned ASICs. That doesn't cost any more money [much] to double sales.
There should be a bottom line gusher going on right now.
Well, there is, but it doesn't seem as spectacular as it could be.
Maybe the $1 bn in R&D is going to do something really good soon. So far, R&D has kept QCOM ahead of Nokia and co, which is obviously a substantial challenge. But the R&D now seems to be incrementally beneficial rather than step function improvement as it used to be. A bit like oil industry R&D seemed to be more like housework than inventing the wheel, or sliced bread.
I liked it better when QCOM R&D breached the laws of physics. When are they going to change financial relativity theory, [invent the Qi cybercurrency], patent reverse spin gravitons, and make photonic free space computing using hologram processing = all light, no silicon? My prototypes are doing okay but I lack a little something.
Mqurice |
