JGoren, re: Eddy Que deposition questions.........................
“A few questions regarding Apple's toll booth on app services as retort to the attack on q licensing fees.”
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Yes, that’s certainly an important area to pursue, along with several others. A couple of recent articles posted here give of some clues of what Que could be questioned about, and perhaps why AAPL has been strongly resisting since last November. Eddy Cue joined AAPL in 1989 and has held influential positions as a senior executive under Steve Jobs and Tim Cook.
1. The launching of the original iPhone in 2007 and Steve Jobs keynote address speaking to the “value” the mobile network that enabled the iPhone---the revolutionary mobile phone / breakthrough Internet communications device. Cue could be questioned on Steve’s comments on that memorable event and his involvement in the AAPL decision to use Infineon’s EDGE chips, and manufacture the iPhone using QCOM’s CM (Foxcon, etc) licenses rather than a direct QCOM license.
2. AAPL’s ten year plus rejection of QCOM licensing terms as being unFRANDly in contrast with AAPL’s terms with its developers and customers. Over that long time frame AAPL stands out as the major hold out / virtually the only holdout amongst over 300 global licensees.
3. The AAPL Samsung meeting during the 2016 Sun Valley tech conference in which QCOM alleges AAPL wrongfully induced Samsung to the influence the Korean government’s anticompetitive litigation against QCOM. Perhaps the meeting that led to QCOM ceasing their “patent peace” BCAP contract payments to AAPL, AAPL’s withholding royalty reimbursement to the CM’s, and all that followed.
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1- The launching of the original iPhone -
1.a. Steve Jobs v Tim Cook and the “value” of the mobile network that enable the iPhone. Keep in mind that the original iPhone was GSM/ Edge only, but QCOM’s added technology over the years incorporated into the newer iPhones improved the networks and the devices themselves significantly.
Tim Cook in AAPL’s litigation against QCOM has minimized the importance of QCOM’s technology and its role in the success of the iPhone. Cook stated in AAPL’s May 2017 earnings CC ( deadline.com )....
“...“(QCOM) is trying to charge Apple a percentage of the total iPhone value.” But the chips are “one small part of what an iPhone is. It has nothing to do with the display or touch ID or a gazillion other innovations that Apple has done. We don’t think that’s right. So we’re taking a principled stand.”
Interestingly, Steve Jobs in his 2007 webcast introducing the first iPhone painted an entirely different picture of the importance of cellular network connectivity in the iPhone. (see transcript snips below)
Eddy Cue could be asked about the excitement that day in 2007, and how the iPhone was a “revolutionary- internet communication device” then working on a now obsolete GSM / EDGE network as contrast to todays 3G/ 3G LTE networks enabled by QCOM’s technology. And how today’s 3G /4G LTE technology embedded in the networks and devices are essential in providing support for almost every aspect of the smartphone’s capability, including Uber, Snapchat, Instagram, messaging apps like WhatsApp / iMessage, streaming services like Spotify, smart assistance like Siri / Google Assistant, and GPS services of real-time mapping / navigation.
Eddy Cue, as Sr. VP of Internet Software Services, could be asked to name the projects he’s responsible for, helped create / develop, which ones relied on cellular connectivity and how the network improvements over the years enabled / improved those services—services such as AAPL’s mobile maps, iCloud, iMessage, Siri, iTunes, and video streaming services.
Eddy could be asked if any of those services would be viable without a cellular connection and, which ones only viable over 3G, over 4G, and how 3G and 4G technology improved the user experience.
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2007 IPhone launch- Transcript link - https://thenextweb.com/apple/2015/09/09/genius-annotated-with-genius/
Youtube video- https://www.youtube.com/watch?v=vN4U5FqrOdQ
Previous posted comments >>>
The video is about one hour, and by my rough estimate Steve spends over half that time enthusiastically touting two of the three “revolutionary” (QCOM enabled) products he’s introducing---- the benefits of the “internet communication device” and the mobile phone.
Steve Jobs snips>>> (just a small sample)
1) + Well, today, we’re introducing three revolutionary products of this class.
The first one: is a widescreen iPod with touch controls. The second: is a revolutionary mobile phone. And the third is a breakthrough Internet communications device. So, three things: a widescreen iPod with touch controls; a revolutionary mobile phone; and a breakthrough Internet communications device. An iPod, a phone, and an Internet communicator. An iPod, a phone … Are you getting it?
2) So, now, let’s take a look at an Internet communications device as part of iPhone.
So what’s this all about? Well, we’ve got some real breakthroughs here.
To start off with, we’ve got rich, html e-mail on iPhone. The first time really rich e-mail on a mobile device. And it works with any IMAP or POP e-mail service. You got your favorite mail service, it’ll likely work with it.
And it’s rich text e-mail.
We wanted the best web browser in the world on our phone, not a baby web browser or a WAP browser, a real Web browser, and we picked the best one in the world, Safari, and we have Safari running on iPhone. It is the first fully usable html browser on a phone.
Third, we have Google Maps. Maps, satellite images, directions and traffic.
This is unbelievable, wait ’til you see it. We have widgets, starting off with weather and stocks. And this communicates with the Internet over EDGE and wi-fi. And iPhone automatically detects wi-fi and switches seamlessly to.
You don’t have to manage the network. It just does the right thing.
3) It’s really cool. Look at this, it’s great. Right in your e-mail, right on your phone.
4) Alright, now I wanna show you something incredible. I wanna show you Safari running on a mobile..... , and this is a revolution of the first order, to really bring the real Internet to your phone.
5) I wanna show you something truly remarkable, which is, Google Maps on iPhone.
6) + So, So, all these amazing things.....This is a breakthrough Internet communicator built right into iPhone.
.....The first rich html e-mail on a phone.
.....The first real Web browser on a phone.
......Best version of Google Maps on the planet, widgets, and all with Edge and wi-fi networking. ......A real browser on the phone. We can see real Web pages in portrait or landscape.
......It’s the Internet in your pockets for the first time ever.
7) You’ve (Google / Yahoo) really helped us put the Internet in your pocket. So, Internet communicator, an iPod and a phone.
8) So what should we price it at?
Well, what do these things normally cost? An iPod, the most popular iPod, $199 for 4 gig nano.
What’s a smart phone cost? Well, they say you get the phone and some of the Internet with it, although that’s questionable. But they cost somewhere around $299. You can get them for $199. Palm just introduced one at $399 yesterday, so they generally average about $299 with a two-year contract. [01:31:28]
And so people spend $499 on this combination.
What should we charge for iPhone?
Cause iPhone has got a lot more than this stuff, right.
Well, we thought long and hard about it, because iPhone just does so much stuff.
So much better experience on call, on managing your contacts, and visual voice mail.
What should we price this thing at?
Well, for a 4 gigabyte model, we’re gonna price it at that same $499. No premium whatsoever. $499.
And we’re gonna have an 8 gigabyte model for just $599.
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