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Technology Stocks : Qualcomm Incorporated (QCOM) -- Ignore unavailable to you. Want to Upgrade?

To: quartersawyer who wrote (134997)	7/25/2004 7:29:38 PM
From: pyslent	Read Replies (1) \| Respond to of 152472

The Chinese condition was the opposite, so Q's offer was hollow. I agree-- I doubt anyone at Qualcomm ever expects to see 7% royalties for Chinese exports, as I imagine the Chinese have the option to switch to the standard import/export rates as soon as it benefits them to do so. IMO, the Chinese export rate was a poison pill designed to prevent Most Favored Nations from opting for the Chinese rates. The de facto deal that the Chinese received was a much lower effective rate (averaging, I'd guess, 2.5% between both imports and exports) in exchange for using CDMA and QCOM chipsets. The Koreans did not get the opportunity for the same deal because of the sneaky export poison pill, and are just upset (righfully, IMO) that QCOM did not honor the spirit of their agreement. Of course, QCOM never expected that the Chinese terms would be made public...