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 : Qualcomm Moderated Thread - please read rules before posting -- Ignore unavailable to you. Want to Upgrade?

To: Ramsey Su who wrote (13640)	8/5/2001 8:47:44 PM
From: Clarksterh	Respond to of 196988

Chinese royalties vs Korean - Were I the Koreans I would actually be more than content with the royalty arrangement - I would assume that in the long run China will find some way to provide protection for their internal markets regardless of what they negotiated with Qualcomm, but the real competition comes outside of China - Malasia, Indonesia, European transition to CDMA, ... . And now they have an advantage against their single biggest long term threat. JMO Clark

To: Ramsey Su who wrote (13640)	8/5/2001 8:52:48 PM
From: limtex	Read Replies (2) \| Respond to of 196988

RS - Well there are a nimber of considerations here:_ 1. Korea has about 50m people - China has about 1.3bn people - the markets just are not comparable. 2. Resulting from above it is clear that the Chinese marklet is going to pay the Q a lot more than the Korean market. 3. There is no doubt that the Koreans deserve a break since they were the founder customers. I have no idea what preferential commercial terms would make a good sweetner for the Koreans but I have seen that quite a bit of the Chinese market is going to be from Korean manufacturers as is of course the US market. Whilst these things may not equate or maybe for all I know should not equate it is not as though there isn't plenty of room for commercial satisfaction without a crude cut in the royalty rate. By that I mean a simple cut in the rate might say be agreed by the Q alongside a minimum as China will no doubt yield substantially more in royalties even with a reduced rate. Just some random thoughts. Best regards, L