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Technology Stocks : Qualcomm Incorporated (QCOM) -- Ignore unavailable to you. Want to Upgrade?

To: SKIP PAUL who wrote (16910)	10/21/1998 11:27:00 PM
From: lkj	Read Replies (3) \| Respond to of 152472

Info on Qualcomm's royalty. I'm not sure if this has been posted. I didn't know that Qualcomm is charging this much. WOW! And by the way, LG is out with its own CDMA chipset, does anyone know how good it is, or how does it compare to the MSM3000? Thanks. ------------------------------------------------------ Korea Economic Daily, page 36 Royalties of 5.75% of purchase price given for each mobile phone The cellular phone industry is showing how important it is to secure original technology. Domestic handset manufacturers like Samsung, LG Information and Communications and Hyundai Electronics are paying royalties to Qualcomm which has a monopoly on the CDMA method, the core technology of cellular phones. Domestic companies are paying 5.75% of the purchase price of each cell phone sold. Add the import cost of the main chips (about $10 for each chip)and domestic companies aren't left with much for profit. Qualcomm has received $190 million since '93 under the pretext of such royalties from domestic cell phone manufacturers. For supplying parts, it has received an additional $740 million. Domestic companies are paying such an astronomical amount just because they don't possess any CDMA technology. With the DMSS-3000 software, the new CDMA technology, Qualcomm is asking for an additional $2.50 royalty for each unit. Domestic companies are calling such demands a 'tyranny', but for Qualcomm which has a monopoly on such technology, such a demand is a deserved right. Including what it receives from Korea, 10% of Qualcomm profits are from various royalties.