Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: JeffreyHF who wrote (62487)	4/12/2007 8:33:15 AM
From: slacker711	Read Replies (1) \| Respond to of 197028

What is the price per unit cap, above which no royalties are paid?Having a lineup skewed to the WCDMA high end, that could be relevant.It is inconceivable to me that either company is literally lying. Great point. I have been under the impression for a very long time that it was around $500. Unfortunately, I no longer have the slightest clue where I managed to come up with that number. I think it is was a statement from Q (obviously not definitive), but who knows? Slacker

To: JeffreyHF who wrote (62487)	4/12/2007 8:37:03 AM
From: waitwatchwander	Respond to of 197028

---> What is the price per unit cap, above which no royalties are paid? Very good point. I always thought it was around $500. So if they are selling their handsets for $750, they would send $20 (4% of $500) to Qualcomm and could claim an aggregate handset royalty rate of 2.6%. I think that makes sense too. No one is lying, they are just negotiating a legal contract. With ASP of around $215, doesn't having such a high selling prices make Nokia's wcdma handsets overly expensive. One has to wonder about the sustainability of their market share and their high margins.

To: JeffreyHF who wrote (62487)	4/12/2007 3:16:47 PM
From: Maurice Winn	Respond to of 197028

QUALCOMM could adopt Nokia's patent selling technique, just as they added another patent selling technique for China [a local rate at only 2.6% and an export rate of 7% to allow for the fact that China operates by stealing so there's no point in trying to charge them much for in-China use - they are going to simply steal intellectual property for TD-SCDMA to save even the trivial 2.6% on CDMA2000]. So, just for Nokia and to keep them happy, make it 1% for the first patent, 2% for between 2 and 5 patents, 5% for between 5 and 10 patents, 7% for between 10 and 15 patents, 10% for between 15 and 20 patents, 15% for between 20 and 30 patents, 20% for between 30 and 50 patents ... and only 167% for the whole enchilada [excluding OFDM patents which will require a separate licence]. That's how Nokia likes to do it. I always think it's a good idea to give customers what they want. Just charge them for it. Mqurice