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


To: pcstel who wrote (94770)2/28/2001 12:09:38 AM
From: samim anbarcioglu  Read Replies (1) | Respond to of 152472
 
pcstel, >>$15 dollars per phone @ a 5% royalty.. Sounds good!!

Royalty rate is 5% of the wholesale price of the phone, not retail. QCOM commands 90% of the ASIC market also. So, any CDMA device also likely embodies a Q ASIC which on the average sells for $28.



To: pcstel who wrote (94770)2/28/2001 12:12:59 AM
From: golfinvestor  Read Replies (2) | Respond to of 152472
 
<Now the same type of phone is only $99>

I think your confused. It's my understanding the royalty rate is based on the Average Selling Price (ASP) of the phone from the equipment manufacture to the carrier. When you see a phone advertised for $99, it has nothing to do with the basis of the QCOM royalty.

Futhermore, higher end handsets should continue to get more complex and more expensive as we move towards 3G. Color LCD's, for instance, are not cheap.