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

To: pyslent who wrote (32181)	2/10/2003 7:04:53 AM
From: John Biddle	Respond to of 197809

I think it is worth considering that over and above the difference in chipset costs between the MSM6300 and the standard GSM chips (which I would guess would be pretty significant), any 6300-powered phone would also incur the additional QTL royalty cost. I too believe that there will be a significant incremental cost for MSM6300 over GSM only, but thought it would be valuable to get a quantification. On QTL royalty. it's true they'll pay ~5% to Q, but don't have to pay unk% to GSM IP holders. This means NOK, ERICY, et al will see big increase, but Korean, Japanese and Chinese will see DECREASE.

To: pyslent who wrote (32181)	2/10/2003 9:04:49 AM
From: rkral	Respond to of 197809

pyslent, re "I think it is very unlikely that 6300-enabled phones will be priced competitively with the standard GSM handset." If GSM phones don't employ a "zero-IF" technology, MSM6300-based phones could be very competitive, IMHO. The reduction in bill-of-materials (BOM) might easily offset the added QCOM royalty. Do GSM phones use ZIF? Don't know. But now that we have licensed GSM phones in the U.S., FCC type acceptance photos might provide a clue, to a techie type familiar with the innards of a cellphone. (Eric L. comes to mind.) Another consideration. Companies might apply a lower gross-margin multiplier to royalty expense, relative to material and labor expense. This would favor QCOM also. But then there's relative efficiencies of different production quantities. The MSM6300-based phone is behind the eight ball on this, *unless* GSM1x becomes reality. JMHO, Ron