Value,
This whole debate over what will flow into Q's pocket with WCDMA has become an excruciating puzzle of semantics.
Frankly, I'm still confused over it.
Q's mgmt has stated all along that royalties are the same no matter which flavor.
Then the question was, "OK, royalties are the same, but how about the net effects of having to license someone elses IPR? Won't that somehow lower the royalty rate? What is the NET royalty?
I discussed this with IR yesterday and they said NET royalties are the same.
NET is the same.
Now A.L. Reagan brings up the point that net royalties may be the same, but the net to Q's bottom line will be lower with WCDMA because WCDMA ASICS have a lower net due to offsetting IPR.
AL says,
"So, assuming we are not having a disagreement on semantics, and assuming further that the GSM Musketeers aren't giving anything away for free to the Q (I think that's a pretty safe bet), I stand by my statement that the net royalty flow to QCOM on a companywide basis (assuming that we are going to sell DS ASIC's - also a pretty safe bet) for DS is going to be lower than for MC."
BTW, A.L. I plan of getting clarification on that issue tomorrow. Thanks for bringing it up.
So, at least in my mind, there is still some haze about NET flows to Q in a WCDMA versus CDMA 2000 scenario.
Q sure is one tough GD horse to handicap, is it not? I'm sure all these mental gymnastics are going to be the equivalent of mental masturbation when all is said and done. Probably best to use the Rip Van Winkle investing approach. lol
Verve |
