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Technology Stocks : Qualcomm Moderated Thread - please read rules before posting
QCOM 174.760.0%9:30 AM EST
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To: kech who wrote (53114)7/3/2006 7:56:46 PM
From: Jim Mullens  Read Replies (1) of 197024
 
Ketch, Re: QCOM royalty cuts / funding IPR, etc.-

Good points / discussion . Hopefully the Q can effectively make the case that its royalty element essentially enabled both 3G technologies and with an R&D team several times smaller than NOK’s. Further, by comparison NOK’s R&D expenditures (& 20,000+ R&D headcount) over the past 5 years were several times larger than the Q’s and were much less effective as their CDMA effort was abandoned and had to be written of as a total loss.

Another point, I keep reading on this tread (and the 5.25 -5.75% rate in the Korean Press) that the Q’s rate is around 5%. Again, I previously used ~ 5% as my bogie. I’ve pointed out several times that Merrill Lynch’s reports IMO effectively document the Q’s handset royalty rate at 4.2%. FWIW, Modoff also suggests the Q’s royalty is in that neighborhood. Therefore,both these analysts support the Q’s recent statements that their rates are in “the low single digits”.

At 4.2% (low single digits), the Q’s rate appears much more reasonable IMO, and
* ~ 16% lower that what I had been using / the norm that most appear to be quoting
** ~ 25% lower than quoted in the Korean Press.

So Art, you got your wish without the Q needing to take any drastic action.
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