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

QCOM 180.90

+2.1%

Oct 31 9:30 AM EST

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To: QCOM_HYPE_TRAIN who wrote (191815)	1/3/2025 1:49:14 PM
From: waitwatchwander	2 Recommendations Recommended By Lance Bredvold sbfm Read Replies (1) of 196395

$300M at a 5.3% royalty rate implies Qualcomm is paying royalties on $5.6B of QCT revenue. That means the majority (ie $30.4B) of OCT revenue is not for ARM cores. The issue with ARM is simple. Moving to an all-inclusive ALA royalty rate means ARM will only get $60M in royalties going forward. No doubt they'd like to charge their royalties upon the full chipset pricing much like Qualcomm does with handset pricing. What I don't understand is why the price of modem software which runs upon ARM cores and is included with QCT chipsets isn't included in ARM's royalty revenue. Going here could also encompass including App and OS software running upon ARM cores which gets provided by Qualcomm with each QCT chipset. Negotiations as to new ARM license agreements are sure to be tough sledding upon all parties. Qualcomm is lucky they can extend their ALA for another 6 years. This seems to now be a critical point in Qualcomm's future.

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