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Technology Stocks : Nokia (NOK)

NOK 6.725

-0.7%

3:59 PM EST

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To: Mr.Fun who wrote (4993)	5/26/2000 12:35:00 PM
From: rgammon	Read Replies (1) of 34857

QCOM vs NOK One final point, QCOM owns the CDMA patents. As such, NOK has to pay a royalty to QCOM for every phone it ships that has CDMA capability. This cash flows almost straight to QCOM's bottom line. We don't have access to QCOM's cost structure, and pricing model for the chip sets, yet, it is fairly easy to see that the royalty stream MAY be higher than the profits on the chip sets. Robert

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