Is Apple Using a Technicality to Avoid 3G License Fees?



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"Licensees must pay 5% of the wholesale price of a 3G device to the patent owner."

"The Bernstein report says that Qualcomm is being paid royalties not on
the price Apple charges (average $590), but on the unit price Apple
pays Foxconn, a mere $244."


Did I miss something? Didn't the first part say Qualcomm gets payed on the wholesale price and not the retail price.

 Where is the loophole?



The wholesale price being what Apple sells the units for to AT&T, NOT the price that Foxconn sells them to Apple. This is why it's a technicality. Are they supposed to pay royalties on the wholesale price they pay, or the wholesale price they charge?



Oh, I assumed the 590 was retail and not wholesale.

Didn't realize those phones cost so much.



Either Apple is complying with the law or contracts or they are not. Apple is a public company and therefore has a legal obligation to its stockholders to get their stock as high as possible.  The Qualcomm arrangement is a clever but legal way to ensure expenses are kept to a minimum.

It would be naive to think that every company paying Qualcomm is not looking for methods to reduce royalty payments.



Typical. Apple uses every trick in the book to scam every single penny it can, but when consumers use "loopholes" to jailbreak their phones or create hackintoshes Apple goes all apeshit.

Hypocrisy much Mr. Jobs?



And they pass the saving on to you... oh wait, no they don't.  Mac's are the most expensive per underperformance price ratio around.  It may save apple $290 Million a year but they are still making money off suckers who think a macbook, imac or mac pro are worth the apple tax.  Get real qualcom, change your licensing fee's to include the sold price in store to collect and not the sold to apple price.

Steve Jobs is the Devil and loves it when someone plays with his loophole and he qualcomm's all over.





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