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Technology Stocks : Qualcomm Moderated Thread - please read rules before posting

QCOM 172.29

-2.2%

3:59 PM EST

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To: Q8tfreebe who wrote (62328)	4/10/2007 10:15:00 PM
From: 1HumbleGuy	Read Replies (1) of 196981

You are most probably correct that LG pays higher net royalty rate than Nokia does. But you are incorrect overemphasizing the LG's 3G phone contest win. Likely LG's strategy was to gain market share here and also make good bang for buck to win public contest. So they gave up their margins, maybe even went for negative ones, thinking of "short term pain, long term gain" strategy Look at the LG's margins. They are very poor, quarter or two back their handset business was still bleeding. LG just doesn't have own IPR power to stand against Qcom, so of course they swallow spit and "take it", because "leaving it" would put them out of business stright away.

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