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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 (33057)3/4/2003 1:50:33 AM
From: Clarksterh  Read Replies (1) | Respond to of 197270
 
Art - So, how about if Qualcomm just sells their chips with no markup?

The point you are not seeing is that almost certainly 5% makes very little difference to the average buyer (see below) but it makes about 50% difference in Qualcomm profits. Thus it would be a foolish trade to decrease royalties (it would be great move if, somehow, Qualcomm could rewrite history and raise royalties (another 2 or 3% = 20 or 30%)).

Would you change your decision about which car to buy when the cars were very different, but one was 5% cheaper? Would GSM take back all of CDMAs market share if they just lowered their price 5%?

In any case, could you move on? If you don't get it, so be it, but please stop?

Clark