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Technology Stocks : Qualcomm Moderated Thread - please read rules before posting
QCOM 171.02-1.5%Dec 31 3:59 PM EST
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To: Kayaker who wrote (15352)9/30/2001 11:52:35 AM
From: voop  Read Replies (1) of 197057
 
Kayaker

I interpreted "if the Korean licensee accepts the lower royalty rate in China"

to mean the royalty rate available in China (for the Chinese)

and not to mean that Korean phones sold in China would have a 2.65 sales rate.

By using the former logic, it would allow any vendor from any country at any time to choose one specific package of a specified domestic fee hooked to a specified export fee, be it the Chinese plan with lower domestic and higher export fees or the current plan. Dr Jacobs is even allowing the Koreans to change to whichever plan they want at any time in light of the MFN agreement. But Korea wishes to cherry-pick the lower rate of each, i.e. Chinese domestic rate and Korean export rate.

Since Korea is saturated pretty well, I would think that the Korean manufacturers would keep the current structure. Now there will continue to be upgrades and data solutions to sell to their denizens, but I think they should try to be the Errorickson of the CDMA world with a world wide reach (and they should be kicking in KDDI's door if Batwing is truly screwing up the 1X implementation which should be old hat to Samsung.)

I can see how it ticks them off to have to pay more than Chinese manufacturers in China (Chinese 2.65 vs Korean 5.75) but they also should have an advantage in the rim of fire in other populous countries where their export fee of 5.75 compares to 7 percent of rival Chinese manufacturers who have to fight a six year learning curve (or thereabouts)

Voop
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