After listening to, and reading the transcript from, Nokias Earnings Call, I get a feeling that what I wrote in
Message 22642233
must be an issue in the discussions with QCOM:
QCOM can't expect to get 4-5% on a device that is so much more than a phone. WCDMA is just one among many factors when consumers decide what to buy. They may love a built-in camera, camcorder or a PIM and may never up- or download anything over-the-air. Personally I would much prefer to do it by USB, WiFi or Bluetooth.
From the Earnings Call:
"Wireless devices have changed dramatically since the early '90s. In the early days of cellular, devices were one-dimensional. The primary feature was voice, and the key enabler for that was the cellular engine. There have been an incredible evolution in the features and functionality devices since that time. This is well illustrated in the Nokia N95 Multimedia computer. Not only does it have a WCDMA cellular engine, it also has HSDPA, GSM, Edge, WIFI, GPS-based navigation and mapping, Bluetooth, MP3 player, five megapixel camera, sophisticated mechanics, a lot of internal memory, powerful process, robust software platforms, a brilliant display and the list goes on and on and on.
Given that the content of devices have changed so dramatically over the years and we are now even starting to call some of the devices multimedia computers because of this massive functionality, we do not believe it is reasonable that the same royalty base and structure should still apply."
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