SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : Qualcomm Moderated Thread - please read rules before posting
QCOM 179.02+3.7%Nov 5 3:59 PM EST
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: slacker711 who wrote (48437)11/4/2005 4:14:05 PM
From: Clarksterh  Read Replies (1) of 196499
 
The difference might only be .55% on the price of the handset, but it is a 10% difference in the royalty rate. We'll have to wait and see how Qualcomm defends this. Perhaps they have some examples of other practices which might stretch the meaning of FRAND.

I have to say that this is making a mountain out of mole hill (by the 6 whiners). Average margin on chipset is probably near 45%. Effectively this is about removing the double royalties which is like knocking 5% (the royalty rate) off this. So the margin on the chipset becomes 40%. BFD. As Qualcomm correctly points out it is guaranteed that the chipset vendors provide pricing swings enormously greater than this all of the time (volume discounts, tying of other forms (buy this chipset plus this screen controller and we'll knock 10% off)).

That said, the question will be whether the EU recognizes the first order fungibility of the $. (There may be second order tax effects, ...) The funny thing is if Qualcomm had written the contracts a little differently (as chipset discounts rather than royalty discounts) they would have made the same amount of money and had no problems.

Clark
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News