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Technology Stocks : Qualcomm Moderated Thread - please read rules before posting
QCOM 53.39+2.6%5:20 PM EDTNews

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To: Jim Mullens who wrote (138376)10/4/2017 5:14:41 PM
From: Jim Mullens1 Recommendation

Recommended By
manning18

   of 138802
 
Re: Apple and Qualcomm’s Billion-Dollar War Over an $18 Part- Add-

snips from article >>>

+ "...The negotiation intensified when Korean regulators began investigating. In August 2016, the KFTC interviewed Apple. Qualcomm says Apple’s statement to regulators contained lies, which is why, the next month, Qualcomm stopped paying its usual rebates to Apple, effectively raising the company’s per-phone royalty rate..."

+ "...Within a matter of weeks, Qualcomm, which had been valued at more than $100 billion in December 2016, had lost a quarter of its market capitalization, an outcome that Qualcomm executives say was Apple’s intent all along..."

+ "...Apple’s lawyers say that’s self-serving nonsense, and they’re preparing for a trial. “There’s no way that this case settles, absent a complete reinvention of the licensing model that Qualcomm has adapted in the industry,” Sewell says..."



As an add to this comment---

"...QCOM’s average royalty for FY16 was about $6/device. With the royalty base capped at about $300, the royalty for higher priced feature rich smartphones would be limited to about $15,or about ½ of the $30 suggested in the article..."

I should have also stated >>>

As payback for 1) violating their "patent peace" agreement...i.e. "..Apple’s statement to regulators contained lies...", 2) initiating countless venues of litigation based upon such lies, 3) forcing (and reimbursing )its contract manufactures to violate their contracts with QCOM, and 4) subjecting QCOM's investors to significant harm, AAPL royalty per iPhone should be increased to the maximum FRANDly amount for companies without IP off-sets, or $15/ iPhone. In addition, to the higher level of royalties a one time penalty should be assessed by the courts amounting to triple the damages (pain & suffering)incurred by its shareholders.

$100B - $70B = $30B x 3 = $90B or $64/ share one time special dividend ($90 B is easily covered by AAPL's cash hoard so no fear of BK / non-payment, but a significant hurt. )

So much for AAPL has nothing to lose.

Perhaps this should get AAPL's general council Sewell's -- attention to settle sooner rather than later.
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