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Technology Stocks : Apple Inc.
AAPL 273.40-0.1%Dec 26 9:30 AM EST

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To: slacker711 who wrote (69134)9/24/2007 2:38:21 PM
From: Wyätt Gwyön  Read Replies (1) of 213177
 
since Apple gets back-end revenue in addition to the front-end $399, QCOM and other IP holders can claim that the royalty must be based on the entire revenue stream received by Apple. so Apple will owe QCOM $19.95 the minute it sells a phone, and then owe 5% of all future revenue which the carrier delivers to Apple.

with this approach QCOM doesn't care how Apple markets the phone ("free" or $399 or whatever); it only cares about actual cash flows or other consideration.
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