Replies to post #174593 on InterDigital Inc (IDCC)

[mschere]

Two points..

1.There will be over 3 Billion GSM/EDGE handsets sold in the next several Years,by all the ODM's(Compal, Quanta, Foxconn,Arima, etc.) plus Sharp, Sanyo, Toshiba, HTC etc.. Royalty that is not on Qualcomm's screen..

2.There is a reasonable possibility that Qualcomm will not prevail in the E.U., Korea and Japan, and InterDigital's WCDMA IP might be the best Insurance policy available.

The impact on royalties would be significant and the impact on finances would be catastrophic,' said Richard Windsor, a mobile phone analyst at Nomura Securities in London. If the EU forces the company to cut the rate in half, Qualcomm's pretax profit in 2007 would drop by a third to $3.3 billion, he said.

$200 per share is probably the maximum, but I didn't want to set the bar too low ;)

One point of the post was to show what Q might gain. And that number is huge; think of all the GSM phones (where Q gets $0) converting to WCDMA (where Q gets $6 to $10+ per). Think of Q collecting $10 on every cell phone sold. These are mindboggling numbers that just might prompt Q to buy a little insurance in the form of our IDCC.