Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : PALM - The rebirth of Palm Inc. -- Ignore unavailable to you. Want to Upgrade?

To: David E. Taylor who wrote (1418)	8/28/2000 12:31:30 PM
From: TechieGuy-alt	Read Replies (1) \| Respond to of 6784

>>>>I think your $19-$20/unit figure for Palm's OS licensing fee is probably on the high side. In the following post: Yup, I agree to this point. In any event, I'm using $10-$13/unit for PALM's OS licensing revenues going forward in the PALM revenue/earnings model I'm working up. I'd appreciate your and others comments on my conclusions on this. Well, you did some (intelligent) calculations and figured out the $10-$13 figure. From a completely different angle here is my take. I work in the embedded industry and have worked with quite a few different OS's on different types of platforms (from a few KB's of memory to 10's of Megs of memory and TCP/IP stacks etc.). If I would to determine a reasonable price to pay for an OS of the capabilities of the Palm OS, I would say around $10-$15 in 10's of thousands quantities/year. This fits in quite nicely with the target end device price of $150-$250. Of course volumes also determine the price a bit, and I think that volumes in the half million to 1million range would bring the price down to the $6-$10 range. So I think that any guesstimate in the $6-$12 is valid for what Palm is getting from Hand. TG P.S. This also cross references form some info that I had in my head about MSoft wanting ~$20-$30 in 10K units for the WinCE OS. (this is not a fact but something that I seem to remember when we were looking at using the WinCE in our embedded product).