Qualcomm Moderated Thread - please read rules before posting Message Board

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

QCOM 171.70

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9:50 AM EST

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To: Qurious who wrote (146670)	5/30/2018 3:42:23 PM
From: slacker711	1 Recommendation Read Replies (1) of 196543

Re modem price, what difference does it make to the handset manufacturer if it pays $30 for the modem, versus $18 for the modem and a $12 separate, device-based royalty? Yep, this is really about unit based royalties or ASP based royalties. At $7 billion, Q would be collecting roughly $3.50 a handset. You can either charge based on ASP's to collect the $7 billion or charge each device the $3.50....whether it is at the modem level or final handset level is irrelevant. Both work and can be defended as fair but different consumers would be paying the royalty. Slacker

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