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

To: Art Bechhoefer who wrote (33011)	3/2/2003 4:48:03 PM
From: John Biddle	Read Replies (1) \| Respond to of 197253

He didn't miss your point, you missed his, and that of everyone else on the other side of your idea. The current royalty rate is not in any way a determining factor in whether carriers use CDMA or in whether handset vendors use Qualcomm chips. They royalty rate is too small a factor, relative to others, to change much of anything. Don't be sucked in by the occasional cries out of Korea about royalty rates. Sure they'd like them lower, but it would not result in more chips being sold, only a reduction in the payment to Q. And sure, China pressed its advantage when it knew it had one, and got special terms, but those terms are favorable to Q when China becomes an exporter, so I think it's a tossup. You bring this up about every month or two and get the same response. Can I ask that you table this idea unless you come up with some new and more convincing arguments?

To: Art Bechhoefer who wrote (33011)	3/3/2003 1:11:34 PM
From: engineer	Read Replies (2) \| Respond to of 197253

and you completely missed mine. Ignore it if you want. GSM royalties have been as high as 10% on average, as high as 15%. The cost of the handset due to a much less complex coding scheme and hence lower component cost have sold 500M handsets. Your argument loses power when you look at the sales. The royalty issue is a complaining point, not a true component. True lower handset costs will lead to lower carrier sbusidies, but the differnence between the $3 loss in royalty on a handset is not going to change hte discount magically from $200 to $10. Carriers average handset pricing right now is like $150. What is 6% versus 3% on that? Do the math and see how rediculous your argument really is. Have a nice day.