QCOM in the news this morning at WSJ. While being mindful of Sean's teaching not to watch the news too carefully, I do want to be aware of developments in the marketplace that can change the fundamentals of a company. The question I have for you, Sean, is this: Since QCOM derived 80% of their profit last year from intellectual property licensing (and not sales of their chips), and given the increasing assault on that business model from competitors and regulators around the world, what are the implications for their revenue model going forward? Here's the story link:
Qualcomm Is Fined $773 Million by Taiwan Over Patent Practices
by: Ted Greenwald
Qualcomm was fined about $773 million by the Taiwanese government, the latest setback as the chip maker defends its patent-licensing business against an international wave of regulatory and legal challenges.