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

QCOM 169.27

-4.8%

Jan 12 3:59 PM EST

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To: pyslent who wrote (76022)	4/2/2008 4:39:58 AM
From: Maurice Winn	Read Replies (1) of 197177

Apple's margins are not thin. Lots of the GSM patents have expired. 16% on the wholesale price isn't a big deal in a two year ownership of a cell phone and payments for service providers to provide service. 16% on $200 wholesale price is $32. Total cost to the subscriber would be about $400 for the phone, plus $60 a month for 2 years = over $2000 for two years. I don't think $32 is going to hurt iPhone sales too much. Other's margins are thin. That's why Nokia has 40% market share, and perhaps 90% of industry profits. 16% is crushing for companies with negligible margins. Many have been crushed and have given up the cellphone business. Even if they have no royalty to pay, they'll be struggling against Nokia. But Motorola was huge too at one time. Now they are in trouble. Nokia is not likely to continue their run in 3G and 4G. Though if courts give them an advantage over their competitors in FRAND decisions, then they might crush everyone. Mqurice

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