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Technology Stocks : Qualcomm Incorporated (QCOM) -- Ignore unavailable to you. Want to Upgrade?

To: Skeeter Bug who wrote (62680)	1/17/2000 10:59:00 AM
From: Jon Koplik	Read Replies (1) \| Respond to of 152472

NO. 4 to 5 % of the wholesale (high) price of the phone. That is why we have all made so much money as Qualcomm shareholders ! Jon.

To: Skeeter Bug who wrote (62680)	1/17/2000 11:05:00 AM
From: Wyätt Gwyön	Respond to of 152472

Skeeter, better buy more of that San Diego real estate--4 to 5% of phone price

To: Skeeter Bug who wrote (62680)	1/17/2000 11:26:00 AM
From: marginmike	Read Replies (2) \| Respond to of 152472

Actuall both if the phones are using non Qcom ASIC's. So its a buck on the chip and 7.50 on the phone(assuming the ASP drops to 150. So on a $150 dollar phone Qcom makes about 7-8 bucks or the equivelent to arround 6% of every phone. If their chips are used the make about 27.50 for the same phone, lets say eventially 1/2 the phones dont use Q and half do then Q would average about 17.50 per phone of which 12.50 would be pure profit. If there were 100 million CDMA subs next year that would equate to 1.2-1.3 billion in profit(without liscencing fees, Omnitracks, interest,GSTRF etc) on 50X earnings(growth rate) Qcom would be worth close to its value now just for ASICS and Royalties. If you add in interest on 2 billion dollars Omni, and liscensing fees you will be closer to 1.5 Billion. If you give Q a CSCO like PE of 100 then in 12 months Q should be about a 150 billion dollar company. That is assuming only 50% Q mktshare in Asic(doubtfull) and no HDR liscence(doubtfull) and no 10 million china buildout(50/50). Therfore I think q is by no means cheap at its current price, it should double in the next 12-18 months on earnings growth and the worst case scenario's.

To: Skeeter Bug who wrote (62680)	1/17/2000 4:10:00 PM
From: Maurice Winn	Respond to of 152472

*Royalties, Last Post* <4 or 5% of the chip(s), right? not 4 or 5% of the phone. that's about $1 per phone, right? or is this off base? > Yes, that's off base. Marginmike gave a good review of the royalties in reply. Also, Irwin Jacobs was recently saying that for 3G and notebook puters and various subscriber devices, Qualcomm would review royalties too ensure they better match the item and circumstance of the application. For example a WWeb car might cost $40,000 so it would be unreasonable to charge 4% = $1,600 for a Web browser. A teleputer notebook might be $2000 and the WWeb ASIC would be a bit too much at $80. Well, I don't know, maybe that's a reasonable price. Anyway, royalties at present were reported [contrary to agreements of confidentiality] in Korean media as about 5.5%. Qualcomm recently said those reported figures were high but they wouldn't say what they were. They implied it was more like 3 or 4%. Which is charged on the wholesale price of the complete handset from the manufacturer. Qualcomm sells the ASIC, which is then incorporated in the handset and the royalty applies to the whole handset, [including the ASIC, I believe], but do not know for sure. I hope that Last Post is not heard for Qualcomm royalties for a LONG time. May the sun never set on Q! royalties. Mqurice