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To: Snowshoe who wrote (56792)	12/2/2004 4:23:01 PM
From: Maurice Winn	Read Replies (3) \| Respond to of 74559

On the contrary Snow. <I though Qualcomm was trying to control the market for CDMA. > Notice how, unlike Apple, QUALCOMM licensed all comers to develop and sell the technology. Notice how QUALCOMM has given up on making terrestrial handsets and infrastructure because they were unable to compete with others who were doing a better job. Notice how they started service provider businesses but gave up on those when others selling CDMA services were better able to do the job and get the customers. Of course they try to get customers and they own intellectual property which they sell for what they think is the right price. I think they grossly undersold their technology, as proven by the $100 billion bid for spectrum in Europe. If QUALCOMM's royalties were a lot higher, those bids would have been a LOT lower. QUALCOMM left a LOT of money on the table. Instead of 5% royalty, they should have charged about 30% royalty. Or at least the same royalty as the GSM Guild was charging [about 16% I believe]. There is an optimum price for a market, even if one is a total monopoly. Simply charging more doesn't increase profits because fewer people will buy and they'll buy less of it. Charging too little means waste and reduced profits. Even people with a total monopoly don't control the market - they are stuck with the optimum price, whether they realize it or not. If they are greedy, as companies usually are, they'll charge too much and might even kill themselves off [as Globalstar did]. Nobody controls that optimum price. It's just an economic law to be discovered. Mqurice