Naturally, one would expect Apple to use the threat of taking the remainder of Qualcomm’s iPhone modem business during negotiations. The fact that such a possibility leaked to the WSJ at an early date only serves to increase that leverage. — Chris Caso, Raymond James analyst
Ray reports, “Caso, however, thinks completely designing out Qualcomm brings a big risk for Apple: it has no backup in case Qualcomm successfully obtains an injunction against non-Qualcomm units of the iPhone.”
MacDailyNews Take: If that’s the risk, it’s a very slight one.
Ray reports, “He thinks the likely outcome is simply that Qualcomm’s share of iPhone goes lower: ‘Net, for 2018, our base assumption is that Qualcomm’s share of iPhone modems will drop to 30%,from the present 50%, thus dropping Qualcomm’s iPhone revenue to the $0.9-1.1 billion range.'”
Read more in the full article here.
MacDailyNews Take: No risk, however slight it may be, no reward.
Qualcomm’s FRAND abuse must stop.
Qualcomm’s licensing scam — charging a percentage of the total cost of all components in the phone, even non-Qualcomm components — is unreasonable, illogical, and irrational.
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