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Technology Stocks : Qualcomm Moderated Thread - please read rules before posting
QCOM 170.95-4.5%12:27 PM EST
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VinnieBagOfDonuts
To: Qurious who wrote (146617)5/29/2018 8:50:14 AM
From: Wildbiftek2 Recommendations  Read Replies (1) of 196520
 
As you mention in your response, the higher order concept enabled by Qualcomm is the network rather than its implementation on clients in the modem. They also own patents related to implementation of cell towers as well and this has nothing directly to do with the parts sold for manufacturing a handset.

As they own the IP that enables the network, they should be allowed to give discounts to participants as they see fit so long as they obey FRAND principles. Generally speaking, lower BOM means lower resolution screens, cameras, and smaller storage which make less intensive use of the network as well (e.g. as the you pictures you upload to and download from social media would take up less space and strain the network less or you are less able to download many large files from the network). An entire ecosystem of such less able phones could make do with a less capable network or equivalently, each places less of a strain on its capacity so it makes sense to afford such phones a discount. Furthermore, discounts are afforded to students on software regularly, children, veterans, and seniors in theaters, and the less financially well off for medications as well so this is a standard practice in multiple industries.
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