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Technology Stocks : Qualcomm Incorporated (QCOM)
QCOM 175.25+0.6%Dec 19 9:30 AM EST
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To: slacker711 who wrote (139751)10/31/2005 9:52:33 AM
From: carranza2  Read Replies (2) of 152472
 
Using your example, and substituting NOK in place of Samsung as a company that develops and uses its own chipsets, why would NOK join into the EEC fray? It gets the best deal of all from a royalty cost standpoint.

Any thoughts?

Edit:

You are correct, the best cost scenario is for a company to buy directly from QCT. The "internal royalty" from QCT to QTL seems to be a transfer of cash from Peter to Paul's pockets. If you ignore it, the diference is on the order of $2, which is substantial.

Using your examples, it is clear why Nokia has joined the fray. It's possible that real money is involved.

PS: I hate accounting.
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