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Technology Stocks : PALM - The rebirth of Palm Inc.
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To: David E. Taylor who wrote (3655)2/4/2001 10:51:19 PM
From: Tom R. Clarksburg  Read Replies (1) of 6784
 
David, The PALM OS licensing fee PALM charges all its licencees is not a fixed royalty but a variable royalty. Palm charges, according to Carl Yankowsski "high single digits %" which means a 8-9% of MSRP fee per unit. That is what he said in the last conference call (in the Q and A).

Donna Dubinsky (in the HAND conference call) also confirmed the fact that the licensing (royalty) fee charges by PALM is a % of MSRP, although she did not state a numeric %, as Carl stated.

I don't know if the numeric given by Carl, was a standard fee across the board for all PDA licensees and a different fee for cell phone licensees---that is yet to be dug up.

If the cell phone license fee is the same as the PDA, then you can just drool at the licensing fees PALM will get if all their cell phone licensees manage to sell 200 - 300 million smart phones in 2003 or 2004. ahh!! its good to dream!!
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