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Technology Stocks : Qualcomm Moderated Thread - please read rules before posting
QCOM 178.28-1.7%3:59 PM EST

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To: Peter J Hudson who wrote (62396)4/11/2007 4:29:47 PM
From: Raglanroadie  Read Replies (2) of 196951
 
Kudos to you for being such an early Q investor.

"Take a low end WCDMA phone built on a TI chipset. QCOM gets a 4% royalty for use of its CDMA IP. Take the same phone and add high resolution camera, MP3 player and PDA functions for double the price. QCOM still demands the same percentage on the wholesale price. Did QCOM's IP add the additional value to the phone?"

On the surface I can see why some people would draw such a conclusion. However, considering that the devices you mentioned now have expanded wireless capabilities I do think it is fair for Q to receive payment for allowing those devices to be used in a mobile wireless fashion. It is more than fair to ask for gas money when taking someone somewhere.
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