Bluesky re interesting numbers for Nokia and Samsung
I believe that Ericy/Sony, Nokia and Samsung's 2G/2.5G TDMA-based prediscounted royalty rate is about .5%. Nokia's royalty rate estimation from my previous post as follows:
"Posted by: rmarchma
In reply to: teecee who wrote msg# 13478 Date:3/17/2003 7:04:37 PM
Post #of 18550
Teecee Nokia's indicated royalty rate is no more than .5%, before discounts for prepayments, calculated as follows:
Nokia total handset sales in 2002 = 150m (exact amount is 152m handsets)
Nokia average selling price per handset in 2002 = $160 (exact amount is $163 per handset)
$160 per handset x .5% = $.80 per handset x 150m handsets = $120m. IDCC said the 2002 estimated royalty range for Nokia = $100m to $120m. IDCC also said that Nokia gets no prepaid discounts for 2002.
The estimated 2003 royalty range for Nokia is $80m to $90m, due to a required two year prepayment. The prepayment discounts for Nokia appear to run about 20%, therefore the 2003 discounted royalty rate for Nokia is about .4% as indicated. The prepayment advance is non-refundable and does get the cash quicker."
Subsequent Notes: IDCC's estimated royalty for Ericy/Sony, Nokia, and Samsung at this point only include 2G/2.5G TDMA-based standards, as these were the only standards that Ericy/Sony licensed and agreed to pay royalty on thus far. No royalty rate has been determined yet for 3G or for CDMA-based standards for Nokia. We will have to wait for another license rate agreement from a leading manufacturer to determine a 3G and CDMA-based royalty rate for Nokia. However, a subsequent 3G and CDMA-based license with Ericy/Sony would once again establish an MFL 3G/CDMA rate for Nokia. Samsung is not yet licensed for 3G or non-proprietary CDMA-based standards. Samsung is licensed for IDCC's proprietary BCDMA standard though.
Nokia sold no 3G handsets in 2002 that I am aware of, and very little CDMA handsets, probably less than 10% of their total. My above calculation got a maximum rate of .5% based on all Nokia handsets. If you try to factor-out something from Nokia's handset total for some CDMA handsets, you will still arrive at about a .5% royalty rate using the lower end of the $100m to $120m 2002 Nokia estimate ($100m royalty divided by 135m estimated TDMA-based handset sales at 90% of total = $.74 estimated per handset divided by $160 estimated average price = .5% rounded.
I believe that Samsung's rate is also approximately the same .5%, estimated Nokia's MFL rate or slightly higher. I have heard that approximately one-half of Samsung's total in 2002 was from TDMA-based handset sales. Therefore, Samsung sold about 21m TDMA-based handsets in 2002 out of their 42m total. Although I do not have an average selling price for Samsung handsets for 2002, I have heard that it was significantly higher than Nokia. Let's assume an average wholesale price of $200 for Samsung's handsets at .5% = $1 royalty per handset x 21m TDMA-based handsets = $21m estimated royalty from Samsung for 2002. This is only slightly less than $22m to $27m prediscounted estimated total for Samsung for 2002. Therefore, Samsung's royalty rate could be slightly more than .5%. Samsung could posssibly pay a little more than Nokia's royalty rate, because Nokia may be entitled to additional volume discounts off a base MFL royalty rate.
AI
