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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 (63017)	4/23/2007 5:13:09 PM
From: rkral	Respond to of 196952

"I interpret this statement to refer to non-handset devices such as laptop computers. Maybe I am wrong and it is meant to include such high price devices likes NOK's new high end $700.00 phone or the I-Phone." If there were no Nokia/Qualcomm flap about royalty rates being below/above 3%, I would agree with you. But since there is, I think odds are good that an "ASP cap" applies to high-end handsets too. The statement in the "Business Model" white paper doesn't actually exclude that possibility, and it's the most likely reason we have for the flap. So we would have Nokia basing the rate calculation on the gross amount ... and Qualcomm basing it on the capped amount. Moreover, the ASP cap may be a lot lower than many of us think. If the ASP of Nokia's WCDMA handsets from the first sale through 2006 were $425 and the "ASP cap" were $300, Nokia could claim 2.8% even though the uncapped rate were 4%. (based on example calculation by Bear Stearns)