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

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To: Jeff Vayda who wrote (146700)	5/31/2018 11:34:01 AM
From: Qurious	Read Replies (2) of 196573

Q's key customers have been fighting Q over royalties for years. That's a fact, not fake news. I am saying Q should find a way to stop fighting with its key customers. Instead, switch the fight to its competitors -- Intel, Mediatek, Spreadtrum, Huawei and any new-comers. If Q wants a sliding-scale royalty, slap it on modems, not on the handset. Make the royalty 50% of the contract price for the modems. $10 low end modem -> $5 royalty. $25 high performance modem -> $12.50. I think that is at least as defensible as a sliding scale based on the handset. Personally, I believe that is a lot easier to justify. I am saying take the hard line with your real competitors (Intel et al). Make it hard for them to compete -- without violating anti-trust, natch. Remove sliding-scale, handset-based royalty as a cause of conflict with your customers. To recap, I want Q to capture the same or more royalty dollars. But I want to make that a non-issue with its customers by rolling it into the (negotiable) price of MSMs. And no more onerous reporting of handset sales required, at least for MSM customers. Check: advantage for using MSM. If anyone wants to fight Q over royalties, I want it to be with Q's modem competitors, not its customers. Then we can be nasty as we want to be. Who knows; this may be what Hock Tan had in mind. Am I being clear enough now? We are on the same side. Just different methods.

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