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Technology Stocks : Qualcomm Moderated Thread - please read rules before posting
QCOM 174.13-2.7%2:23 PM EST

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To: Qurious who wrote (146030)5/8/2018 2:51:04 PM
From: Art Bechhoefer1 Recommendation

Recommended By
Lance Bredvold

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You make very interesting assumptions, especially that Centriq uses "a technology which anyone can license at a very reasonable cost." Yet, isn't it a fact that the Centriq chip is now commercially available and has been found suitable for at least certain types of cloud servers? And isn't the cost of that server well below its Intel competition, along with power consumption?

If Centriq were merely in the design stage and not yet commercial, I would agree that writing off the asset might be a reasonable way to cut ongoing R&D costs, along with probably some administrative costs and office/lab space as well. But if the chip is now available and has at least a small potential market niche, then isn't it better to keep on perfecting it (it's not merely a version of an ARM design, owing to the modifications in hardware as well as new software), or else sell it to a company that has enough entrepreneurial motivation to make money on it?

Perhaps the most practical way to sell Centriq is to create an affiliated company with management separate and distinct from QCOM, and then create an IPO that includes not only the design of the chip but relevant proprietary hardware and software technology in a package that might be sufficiently attractive to buyers, whether individuals or corporations.

Art
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