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Technology Stocks : Qualcomm Moderated Thread - please read rules before posting
QCOM 159.42-1.2%Jan 16 9:30 AM EST
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To: Art Bechhoefer who wrote (33011)3/3/2003 1:11:34 PM
From: engineer  Read Replies (2) of 197253
 
and you completely missed mine. Ignore it if you want. GSM royalties have been as high as 10% on average, as high as 15%. The cost of the handset due to a much less complex coding scheme and hence lower component cost have sold 500M handsets. Your argument loses power when you look at the sales. The royalty issue is a complaining point, not a true component. True lower handset costs will lead to lower carrier sbusidies, but the differnence between the $3 loss in royalty on a handset is not going to change hte discount magically from $200 to $10. Carriers average handset pricing right now is like $150. What is 6% versus 3% on that? Do the math and see how rediculous your argument really is.

Have a nice day.
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