I stopped by the forum to see if there were any new juicy rumors, but most of all I saw a lot of criticism that Qualcomm’s business model is outdated. Purely out of curiosity I wonder how you think the existing business model should be redefined?
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The person trying to explain royalties doesn’t understand the concept. When a chip is made all royalties should be paid with the price of the chip. That is how royalties are paid in the real world.
Example: you buy a book royalties are paid out of the book price. One does not pay every time one reads the book. If you give the book to a friend - the friend does not pay royalties every month. The royalties are paid in the initial price of the chip. What also makes Qualcomm business model awful is - if someone makes 100k a year or someone makes 50k a year and buys the same chip. The person making more money will pay more for the same chip. Which makes no sense whatsoever. Apple sued Qualcomm Bc it was using the same chip as cheap android phones and being charged 3xs as much just bc apples phones cost more. The chip is sold as a percentage of phone cost not what the chip cost. In the real world of apple bought more chips the price would be lower but not in a Qualcomm world…. This is why everyone says Qualcomm has the best law and lobby department on earth 🌏
The ignorance of a Qualcomm employee. GSM predates CDMA. The questions is why would the US force the American people to pay Qualcomm extra to build out 2 standards in America when there was already one built?
That is the question that a Qualcomm employee will never understand. But Qualcomm’s law and lobby department know so well
If the US forced the country to use the CDMA standard, how could AT&T and T-mobile deploy GSM?
Like I said you are trying to teach a Qualcomm employee. The judge in the cast literally said Qualcomm are crooks and trying to make a business model that was supposed to be temporary into a permanent model.
People do not pay a fee every time they play a blue ray disk or GM every time a car is driven. But talking to a Qualcomm employee is like talking to someone from another world!
Ok, you should think practical. Royalty is not for the chip. It's our IP.
Do you pay royalty every time you start samsung phone? No.
Just think other way. I buy your chip and use all of yours patents. Customize the product and resell it in Market. This way, I am competing with you in market but you will not get anything.
Also, one more example in below question, why do you pay royalty to ARM per device? They are not selling you any HW means they should not get any royalty.
May be you are very new to fields. You will understand only when you start your own business.
You are trying to teach people business who barley know how to do their own job in real life. This is way over the average Qualcomm worker’s head.
You obviously don’t follow the news. So let me give you an example of Qualcomm’s business model.
You buy TV. You own the TV. But every time you turn the TV on you have to pay Samsung a totality Bc you are using their TV. And if you bought a time of the line TV you have to pay more even though the cheap TVs are using the same chip. Bc the service doesn’t have a set price it’s a percentage of the overall phone price. This was allowed at first to help build out the wireless network but really isn’t needed anymore. There is no other business that does this. Imagine buying your car - paying the car off, and still paying GM every month a royality Bc you own a GM car!
Do you honestly think this is fair? And to top it off the US forced the country to adopted the CDMA standard.