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

To: pyslent who wrote (75531)	3/17/2008 4:23:49 PM
From: whisperer	Respond to of 197227

Nokia clearly believes that any new licensing agreement with Qualcomm should be reduced in part by the value of the paid up portion of Qualcomm's portfolio. Meanwhile, Qualcomm probably was willing to agree to the "paid up" covenant of their earlier contract since that has no impact on their flat rate bundling business model. I think you hit the nail on the head. I don't think Nokia's argument will fly, however. Consider the following analogy: My favorite electronics store is having a special on a computer bundle for $500. The bundle includes a laptop, a printer, operating system, and some application software. If I were to purchase each component separately it would cost me $1000. This is a great deal, so I pick up the bundle, walk to the cashier and say: "I already have a printer, so I don't want it, but I want you to reduce the price of the bundle by $200, because that's the price for the printer alone." The cashier doesn't know what to do and calls the store manager. What do you think the manager does? Does he give me the bundle for $300, or does he laugh in my face and tell me the take a hike? -W