***Royalties, Last Post*** <4 or 5% of the chip(s), right? not 4 or 5% of the phone. that's about $1 per phone, right? or is this off base? > Yes, that's off base. Marginmike gave a good review of the royalties in reply. Also, Irwin Jacobs was recently saying that for 3G and notebook puters and various subscriber devices, Qualcomm would review royalties too ensure they better match the item and circumstance of the application.
For example a WWeb car might cost $40,000 so it would be unreasonable to charge 4% = $1,600 for a Web browser. A teleputer notebook might be $2000 and the WWeb ASIC would be a bit too much at $80. Well, I don't know, maybe that's a reasonable price.
Anyway, royalties at present were reported [contrary to agreements of confidentiality] in Korean media as about 5.5%. Qualcomm recently said those reported figures were high but they wouldn't say what they were. They implied it was more like 3 or 4%. Which is charged on the wholesale price of the complete handset from the manufacturer.
Qualcomm sells the ASIC, which is then incorporated in the handset and the royalty applies to the whole handset, [including the ASIC, I believe], but do not know for sure.
I hope that Last Post is not heard for Qualcomm royalties for a LONG time. May the sun never set on Q! royalties.
Mqurice |
