| | | Broadcom pulls out of the business. Well done Mq, you got that right. Maybe the "no downside" legal decision by Louis Lupin was a good one after all. Come back Lou, all is forgiven. You should have explained that that was the strategy all along.
Thanks for the patents Broadcom. Goodbye and good riddance.
<As Nokia sales fall, taking their 2% royalty with them, others paying the so-called "standard rate" take over from them and Qualcomm's profits will zoom. Also, the relative value of the patents is shifting to Qualcomm - which might end up getting all of Nokia's patents available without any loss to lower royalties.
Now we just need the same effect to happen to Broadcom which did a patent swap with Qualcomm. Qualcomm has access to all their patents and they have access to all Qualcomm's [or some such amount]. If Broadcom goes bust, then Qualcomm gets the patents for nothing = no Broadcom market share. Perhaps making that legally required payout to Broadcom will end up a good deal, helping induce them to come to a deal on patents.>
Broadcom got out of the cellular baseband business in mid-2014 because it was losing $2 million per day staying in that market, which is dominated by Qualcomm (NASDAQ:QCOM), Intel, MediaTek and others, according to CEO Scott McGregor.
In an interview with EE Times, McGregor said that the decision to exit the baseband market in July 2014 was a "very painful" one, but that the company "saw the deteriorating condition in the economics of that business in terms of pricing and margins."
Mqurice |
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