Stefan Mileschin

Apple wants to pay less

Next time you buy an iPhone that nowadays easily exceeds $1000, € or £, Apple doesn’t want to pay $13 out of the selling price of its phone to Qualcomm. That is what the whole fuss is all about. Qualcomm offers multi model standard essential patents that include 3G/4G and 5G in that price.

A few months back, yours truly met with Qualcomm Technology Incorporation, a licensing and royalty part of the company, to learn a bit about the licensing standards and how the company works. In a now public document Qualcomm reveals that the Smartphone royalties cap at $400 selling price. Apple refuses to pay a previously agreed royalty claiming that it is too much - neglecting the fact that Qualcomm has the same price based on the selling price of device, with a cap for everyone. Well, Apple wants a special deal and to pay less attacking QTL's base business model. Qualcomm said to to mighty Apple and Apple decided to go after its blood.

What that means is that an OEM gets 3G/4G/5G multi-mode SEP rates when it pays 3.25 percent royalty of the device price. On $100, a manufacturer has to pay 3.25 USD royalty. A $200 phone will end up with $6.25 royalty. Qualcomm decided to keep the cap, maximum amount for SEP licensing at $400.

This means that Apple, which sells its cheapest latest generation XR iPhone for $749 pays a royalty based on a $400 device selling price cap. If you do the math, 3.25 percent x $400 selling price is $13.

https://fudzilla.com/news/mobile/476...usd-per-device