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Technology Stocks : The New Qualcomm - a S&P500 company -- Ignore unavailable to you. Want to Upgrade?

To: engineer who wrote (1436)	9/12/1999 2:36:00 PM
From: KyrosL	Read Replies (2) \| Respond to of 13582

Two questions about Q's royalty fee structure: 1. I read that Q gets a % of the "manufacturing price" of a CDMA phone. The % varies depending on who is the manufacturer and who makes the CDMA chips in the phone. Does this mean that as the ASP of the phone drops, the royalty fee per phone will also drop proportionately, or is there a fixed minimum royalty fee per phone regardless of ASP. 2. How is ASP determined if the mobile phone is part of a device, perhaps only a small part. For example, the pdQ integrates a Palm Pilot along with the phone. The Palm Pilot by itself sells for more than the phone. If somebody else integrates a CDMA phone within, say, a laptop or palmtop, how are royalty fees determined?