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To: samim anbarcioglu who wrote (94771)2/28/2001 12:54:06 AM
From: pcstel  Respond to of 152472
 
samim anbarcioglu <Royalty rate is 5% of the wholesale price of the phone, not retail.>

Yes, I realize that. But, it was used as an example of the concept as the "economics of scale" on these devices create cheaper and cheaper retail and wholesale pricing.. and a resulting 'direct' royalty decrease.. Hence over a period of several years.. You suddenly have to achieve a 300% increase in ASIC and UT sales to achieve the same royalty run rate..

PCSGTEL


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