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

To: slacker711 who wrote (76776)	5/1/2008 2:26:17 PM
From: engineer	Read Replies (3) \| Respond to of 196816

100% CDMA, about 60% 3G and GSM and growing. They plan to rol over to as much ODM as they get to by end of 2009. But the point is ODM pays 20-25% less royaty on a phone by phone basis than NOK would have paid. So an ODM phone is in actuality paying less roylaty than a pure NOKIA mfg handst as it looks to NOK. example (made up numbers) BOM = $200 ODM builds for $225 sells to NOK< ays 5% royalty = $11.25 NOK buys at $225, resells to carrier for $250 So $11.50 on $250 sale is really 3.75% or so. This is how CDMA works and this is how they want WCDMA to work eventually. IF NOK looses the court case on royalties, then this is their major fallback. In effect, they can legally find a way to redue their royalty payments. The dollars at stake here are that NOK thinks they can produce the phone for less cost than the ODM and they want to keep the 10-15% the ODM charges today. So I did the real thinking work, oh wiseass one.