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1. If Apple sells a $2000 phone with 2GB internal memory card, why should they pay royalty on full price of phone for 4G patents? Isn’t that like paying a 4% steering wheel patent on full price of car, so for a Civic pay $800,
but $7000 for a Tesla? But QCOM has been running this legal scheme for 20 years plus, so expect it go on.
[/quote]Your analogy is very misleading. If you want to really be accurate – it is not a ‘steering wheel’, but ‘engine and part of the transmission’. Their patents are more important to the ‘car aka phone’ than a steering wheel. Without some of those QCOM patents, there would be no phone(the GSM types may be somewhat free of these). The difference in price may in part be due to ‘volume’. QCOM might take a lower royalty while a new product line is starting up, in exchange for a greater one later – backending the royalty – making it easier for the new product line to be established. The royalty percentage might be different because one manufacturer uses a greater percentage of QCOMs IP as a percentage of all IP used in manufacturing the phone.
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2. Wouldn’t be surprised to find all government lawyers were told to now support big corporations, not sue them, so expect FTC lawsuit to disappear.
[/quote]You just displayed an incredible amount of ignorance here. Apple’s market cap is $630 Billion, Qualcomm’s market cap is $81 Billion – so who is really the big bully here? – Mike drop ®Obama.
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3. If Apple CEO were someone like Trump, I would expect a big drag down multi-year fight. Trump would gather all mobile companies and pull a industry wide boycott of QCOM products. Alas, we don’t, so expect Apple to fold like a cheap suit for private settlement.
[/quote]Without Qualcomm, no CDMA, no Sprint, slower military and satellite coms — etc. Dr. Viterbi along with Irwin Jacobs co-founded Qualcomm. He is also responsible for a key part of IP used in digital signal processing. In my opinion, more benefit has been brought to society by Qualcomm and Dr. Viterbi than some fanboi’s fondleslab maker. BTW, Apple’s CEO is probably more like Trump than you realize – just has better hair and wears a suit better.
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So buy QCOM on more weakness or I am missing something?
[/quote]As flu mentioned, the semi-business is cut-throat. Also note this quote from flu:
QC is going to fight this to death. And there’s a reason for this. If apple, wins, it’s going to snowball into Samsung, LG and every other OEM that ends up suing, as other OEMs will want to use this to drive down their costs.
– so there is definite risk in investing in QCOM. Qualcomm has to invest in continual tech R&D to maintain their IP. Apples is based upon ‘design patents’, aka how it looks. They don’t have to plow as much back into the business.
