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Technology Stocks : Apple Inc. -- Ignore unavailable to you. Want to Upgrade?


To: Wyätt Gwyön who wrote (69044)9/24/2007 12:56:25 PM
From: slacker711  Read Replies (1) | Respond to of 213177
 
what will QCOM charge Apple for WCDMA/HSDPA license? about a 5% royalty?

The 5% rate is Qualcomm's standard rate. There are licensees that pay a lower rate but they usually have a large amount of their own IP in either WCDMA or CDMA2000. You can be sure that Q wont charge a rate much lower than 5% without a protracted struggle.

It is still an open question whether this will be payed directly by Apple or by the OEM on the transfer price. I had been thinking that the royalty would likely be paid by the manufacturer but Apple just signed directly with Interdigital so perhaps Apple needs their own licenses.

Another complicating factor is the system that Apple has set up for payments directly from the operator. These subsidies dont go into the wholesale pricing of the handset....so if Apple is giving the iPhone away for free next year, how will royalties be determined?

Slacker