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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 (53113)	7/3/2006 3:51:12 PM
From: kech	Read Replies (2) \| Respond to of 197015

Qualcomm already learned from the Apple mistake. This is why it licensed its technology to any handset maker it could find. Apple didn't do that until late in the game. But you say, that the Qualcomm technology is more expensive. Yet if you look at the India article I posted yesterday, Qualcomm is coming out with a range of chips that reduce the cost of the CDMA handsets to parity with GSM. How could they do that with a system that is much more computationally intense? Because Q invested a lot of money in R&D based on the collection of royallties and on the expectation of future collection of royalties. We have been over this before, but I think it bears repeating that Qualcomm's position is that the royalties are the path to reducing the cost of its technology in terms of end user price. The royalties are a small part of that cost but the investment in R&D is what makes the cost come down. Yet despite this, you want to take it to the next level and say that Qualcomm should reduce its cut on the intellectual property itself! You are making Nokia's argument for them and ignoring the argument that Qualcomm management is making on its own behalf, which is one that is closely supported by recent and ongoing cdma handset price reductions.