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To: Techteam who wrote (8877)	2/24/1998 6:51:00 PM
From: Michael Allard	Read Replies (1) \| Respond to of 152472

Some royalty thoughts: Based on announced capacities (and a few conservative estimates) Worldwide CDMA Handset capacity sits at 7 Million units a quarter. QPE's portion is around 1.5 Million per quarter. Assuming the balance sold for $300/unit, and QCOM averaged 3.5% royalty on these handsets, the royalty would be $57.75 million per quarter. That's assuming, of course, that the manufacturers ran at capacity. I've seen 1998 year end worldwide CDMA subscribers in the 25 - 30 Million range, which would require at least 71% of this capacity to achieve. That would mean handset royalty alone for calender 1998 of $164 - $240 Million, based on announced manufacturers.

To: Techteam who wrote (8877)	2/24/1998 7:12:00 PM
From: Michael Allard	Respond to of 152472

CDMA Handset Capacity as of June 1998: Manufacturer / Quarterly Capacity QPE / 1,500,000 QCOM "Q" / 600,000 (Moving to QPE) Nokia / 1,200,000 Pantech / 150,000 Audiovox / 90,000 Samsung (US) / 136,000 LG Info (Korea) / 900,000 Hyundai (Korea) / 450,000 MI Tel Ltd (Korea) / 250,000 Motorola (Korea) / 300,000 Samsung (Korea) / 900,000 Sanyo / Unannounced (375,000/quarter in 1999) Motorola (US) / Unannounced Philips / Unannounced DENSO / Unannounced