Qualcomm Inc (QCOM)

[richbloem]

Ricardo, I know of only one issue where Q gives a royalty discount based upon a commitment to purchase ASICs from Q and that is in China. In China Q agreed to to a much smaller domestic royalty if using Q's ASICs, however, that was offset with a much larger export royalty. The Koreans bitched about this and Q offered the same terms to them if they wanted it. However, the Koreans said "Uh, no thanks. Upon further review we are satisfied with our terms".

This has to be what the POS is referring to, because the other discounts are not on royalty but on the price of the ASIC based on volume purchasing of ASICs. All companies give quantity discounts so this could not seriously be considered anti-competitive.

If there are any other situations where Q has offered royalty discounts tied to ASIC purchases nobody has ever mentioned it.