Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: engineer who wrote (146691)	5/31/2018 4:31:43 AM
From: Qurious	Respond to of 196561

No offense, but no, it has not worked since 1994. If we look back on Q's history, especially for those of us who have held and suffered for decades as the stock yo-yo'ed, one thing is clear. With rare exceptions, the company's ups and downs have not been due to any major mis-steps in technology or operations. (Long term trends such as declining global units and ASPs are another story.) Its challenges have nearly always been due to conflicts with its own key customers and regulatory bodies. Nokia, China, Korea, EU, FTC, LG, Samsung, Apple, Huawei(?) have each at some point refused to pay royalties or scrutinized its licensing practices. Sure, each dispute was eventually settled. But I ask: name another successful, well-run company which has continually run into such loud and visible legal disputes with its best and key customers. Then tell me Q's licensing/royalty model has been working. I've been walking the strife/conflict worn streets of Europe the past 2 weeks. It dawned on me that maintenance of power always depends on alliances. Alliances are always fragile, fickle. But power nevertheless depends on successful alliances. Q's licensing model is the direct cause of all its conflicts with its customers (which should be its natural allies) and regulatory bodies. Q always stands alone. Friendless. That's a lousy way to run a business. Consider the alternative: if Q rolls its IP claims/royalties into its MSMs (do they make CSMs anymore?), throw in other deliverables (software etc.) for free, and instead license its competitors (Intel, Mediatek, Spreadtrum, Huawei etc.) and engage them on a FRAND but tough stance, in one move Q will have shifted its entire friend/foe profile. Q can get tough with Intel/Mediatek et al, engage them in suits after suits all it wants, make life difficult for them, make them quit the business. Meantime, make life easy for its customers, the Samsungs, the Apples, the Huaweis... Does that not make more sense?