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Technology Stocks : Semi Equipment Analysis
SOXX 314.52-0.6%Dec 11 4:00 PM EST
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To: Elroy who wrote (83357)5/24/2019 4:02:34 PM
From: Kirk ©1 Recommendation

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simple. (this is my understanding as someone who has a name on a patent for related technology)
But I do wonder why they earn a percentage share of the sales price of the device that uses their CDMA baseband rather than a percentage share of the chip price itself? QCOM's tech is in the chip, not the phone.

Their belief is their technology makes the phones possible. they don't care who you buy the chips from as long as you are paying them a fee to use their technology.

in theory, they could make phones and make more money per phone for higher priced phones.

Of course, some argue this is taking advantage of a monopoly so they let others make the phones then extract some value based on the price of the phone as if they made the phones.

So, if you are going to make more money, they should get more also.
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