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Technology Stocks : The New Qualcomm - a S&P500 company
QCOM 174.01-0.3%Nov 14 9:30 AM EST
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To: Wyätt Gwyön who wrote (95)7/23/1999 10:25:00 PM
From: SKIP PAUL  Read Replies (1) of 13582
 
Handsets get to market three ways:

1. Third party asics and third party handset. In this case both the Asic manufacturer and Handset manu. pay royalties to QCOM. My guess is QCOM makes about $14 to $20 per handset depending on the transfer price of the product.

2. Qcom asic and third party handset. In this case QCOM makes aprofit on the ASIC and gets royalties from the handset manu. My guess is that QCOM makes $ 12 to $24 in royalties and $12 gross margin on the asics.

3. QCOM asic and QCOM handset. In this case QCOM keeps it all but spends a lot of money and effort in manufacturing and marketing the products. My guess is QCOM makes about 35% gross margins on the handsets which would be approx $70 per handset average.

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