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

To: LBstocks who wrote (3144)	11/10/1999 11:21:00 PM
From: Maurice Winn	Respond to of 13582

<Handset manufacturers pay Qualcomm 4,000 won in royalties for each handset they put out, and the cost of imported parts, about 147,000 won, constitute 42 percent of the manufacturing cost.> Hang on a minute. If the parts cost 147,000 won and the assembly and stuff costs [at a wild guess] 50,000 for a wholesale price of 200,000 won, then at 5.5% royalty Q! should receive 10,000 won, not 4,000. They [Korean companies] don't pay royalties for cellphone sales in the 800MHz range as part of the original royalty deal, so I suppose that is where the difference arises. But they do pay royalties in the PCS spectrum. This has been a sore point with the Koreans who whined and are still whining over a trivial royalty. Why are they going on about 4,000 won? The packaging and printing would be more than that. They don't separate that out for special mention. Why do they whine about the part which is amazing and a huge bargain = the brainpower which made CDMA possible in mobile? Mqurice