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Technology Stocks : The New QUALCOMM - Coming Into Buy Range -- Ignore unavailable to you. Want to Upgrade?

To: Maurice Winn who wrote (5983)	2/17/2010 11:16:43 AM
From: Art Bechhoefer	1 Recommendation Read Replies (1) \| Respond to of 9129

Maurice, regarding introductory royalty rates, and without trying to belabor the point: 1. Motorola got an introductory royalty rate, probably around 2 percent, and probably for CDMA based phones. The only other companies that got special rates were those in China, which got about 2 percent for domestic sales, compensated by about 7 percent for export sales. 2. I suggested an introductory rate across the board for CDMA phones, not just for a couple of manufacturers. But that water is already over the dam. 3. As we know, the rapid adoption of a new technology also creates economies of scale. GSM proponents were able to keep the price of GSM chips low because of these economies of scale, making it more difficult for phones equipped with the more expensive QCOM chips to make inroads. This problem manifested itself in places like India and Latin America. Though the price of chips may have been one factor, it's also true that decisions favoring GSM over CDMA were not always based on economics alone, unless it was the personal economics of a decisionmaker. Art