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

To: Rich Bloem who wrote (62993)	4/23/2007 12:21:24 AM
From: Maurice Winn	Respond to of 197671

Well, the idea of a maximum goes back at least a decade I think. I have no idea where the references to it are. Somebody with a good search function can probably find references. It makes sense that there be a maximum. Putting an ASIC in a Mercedes would mean very high royalties if there wasn't a maximum. People would have to make the QCOM parts as modules to be added later as aftermarket products to avoid the high royalties. People wouldn't build ASICs into notebook computers as the $100 royalty on a $2000 computer would be a bit much for Dell and co to swallow. They'd have to offer a plug in module as a separate item. I am pretty sure there's a maximum. I have no idea what it is and have never seen what seemed like a leak. Mqurice

To: Rich Bloem who wrote (62993)	4/23/2007 7:11:25 AM
From: rkral	Read Replies (1) \| Respond to of 197671

"To my knowledge there is no documentation from Q or any other source that indicates that royalties will only be applied up to a certain dollar threshold." From "QUALCOMM Business Model -- A Formula for Innovation & Choice", March 2007 Qualcomm white paper, pg 7 "Indeed, because handset prices have continued to fall (due in part to the competition that QUALCOMM has fostered), the actual average royalty per phone has QUALCOMM’s standard terms include an effective royalty rate that is less than 5 percent of the wholesale selling price of a licensed handset. actually decreased over the years. In order to foster development of more complex wireless devices (e.g., laptop computers) that are more expensive than high-end wireless telephones, QUALCOMM also has voluntarily instituted a "cap" on the amount of the royalty paid by its licensees for such products." -- qualcomm.com