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

To: rkral who wrote (62481)	4/12/2007 7:59:30 AM
From: waitwatchwander	Respond to of 197030

---> Did Nokia under-report WCDMA handset sales when making their royalty payments? 3% of what ??? I see Nokia uses the term "aggregate handset sales". How is that defined? Here's an example that might work. Nokia sells a handset to an operator for $200 and charges an additional $50 in marketing fees. They send a royalty cheque to Qualcomm for $7 (3.5% of $200). If they define aggregate handset costs as both costs ($250), then they can say their royalty rate on aggregate handset sales is 2.8%. The above is somewhat like what they are now doing with ODM's (or whatever Eric calls them) for their cdma handsets. Message 23448882 As you previously implied, the answer could also be hidden inside Qualcomm's books.

To: rkral who wrote (62481)	4/12/2007 8:00:45 AM
From: scratchmyback	Respond to of 197030

<<What's your explanation?>> No explanation in my mind so far, I'm puzzled, to put it mildly.

To: rkral who wrote (62481)	4/12/2007 2:31:55 PM
From: voop	Read Replies (1) \| Respond to of 197030

I must be missing something. Again I see no problem interpreting that the cumulative payments for Nokia are less than 3% to the entire industry and the payment received from Nokia to Q is ~4.5%. Recall Nokia statements always say cumulative or aggregrate...from all players. for example Nokia pays Q 4.5%, IDCC 2%, Erickson 2%, TI 1%, Motorola 0.5%, Seimens nothing any more, Nortel 0.5% etc. Together its less than 3%, especially since Q had not capture lion share of market. Individually Q sees the ~4.5% and could not give a flip what the market bears for the others. Nokia is NOT counting income...either its not much or its not the point they are making in the PR war. For all we know they are getting 2.25% royalty income from all comers without cross licenses...perhaps their net costs are just a fraction.