Qualcomm Moderated Thread - please read rules before posting Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

QCOM 163.88

-0.4%

11:33 AM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: waitwatchwander who wrote (91175)	4/26/2010 10:34:10 AM
From: matherandlowell	1 Recommendation Read Replies (1) of 197218

" What I see in this graphic is the industry moving forward with a piece of the royalty pie having been removed." I think that this is a key point and I agree that Engineer's experience and expertise ranks him among the most the knowledgeable contributors here. My earlier post notwithstanding, there are some amazingly knowledgeable contributors to this board. The question is whether a piece of the royalty pie has been removed. Your argument that a piece has been removed implies that QCOM will not derive any benefit from the success of Apple. You might be right but I find this possibility to be almost inconceivable. My understanding is that the manufacturer of the iPhone pays Apple's contribution to the QCOM royalty stream. Anything less than that would almost surely result in some kind of legal injunction on the sale of the product. Even with this contribution, QCOM might still be owed a very considerable amount from Apple but I don't know the terms of a QCOM license-- it is possible that Apple has a license but has not yet disclosed that they do. It is hard to believe that QCOM is giving away the store but because of nondisclosure agreements, we have no way to know what consideration QCOM is currently getting from Apple. Has a piece of the royalty pie really been removed? Has QCOM really developed essentially all of 3G and 4G technology and then given it to another company for no compensation? I doubt it. The thing that Apple did that QCOM seems not to have done is to take a piece of the service revenue stream. Perhaps with some new IP (say with the Mirasol screen) the company could request a small percentage of the monthly service fees the new product will earn. QCOM deserves such compensation much more than does Apple. I think that BREW might incorporate such a compensation. Thanks again for your thoughts. j.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next