What is the new terms ? Any insights ?
Also, if OEM's dont pay on ASP of the phone, but strictly for the chip + IP, what will be the impact. I am sure some one has done the math as I believe this is where this is all trending towards.
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Does this terms apply for server business ? How will be the $ made in server business here.
http://www.sandiegouniontribune.com/business/technology/sd-fi-qualcomm-framework-20180427-story.html
In a nutshell
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Stock price to adjust
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Staffing to adjust I.e reduce to meet the shareholder value
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Forward looking struggle to maintain the market share
Run"........
Per device royalty model will end soon (2019). QCOM will be paid royalty only on modem.
So just for modem, income is dropping by at least 20%, 5G will not bring is $ like 4G. Not making money elsewhere therefore, there has to be more staff reduction and stock should trade 40. Plain and simple. NXP is just a side gig.
Previously the maximum base price was $500. so they lowered it to $400.
And soon you are out of iPhones haha. Keep polishing, sterling :)
They said it on the call. The maximum base price for phones is going to be $400. So if the rate is 5%, the max royalty per phone is $20. So an iPhone X which sells for $1000 will be counted as a $400 phone. That's a $30 decrease in royalty for that phone.