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


To: inaflash who wrote (69135)9/24/2007 2:13:58 PM
From: slacker711  Read Replies (1) | Respond to of 213177
 
Does that mean that it doesn't matter whether the handset sells for $600 or $200 that Qualcomm doesn't benefit?

The operators have a huge incentive to subsidize the handsets so the wholesale price is almost always higher than the retail price.

There's a lot of legal details to be ironed out, but it could be argued (by Qualcomm) that ANY payments from ATT to Apple related to the phone can be considered part of the "wholesale" cost.

I am sure that Qualcomm will make that argument and Apple will respond that those payments are for the continual software upgrades.

I just hope that they manage to work something out. There are enough lawsuits in the wireless industry....

Slacker