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High Value Products are also high Margin Products
Authored by: Anonymous on Wednesday, October 10 2012 @ 06:39 PM EDT
"It seems like if Apple wants that to happen they should negotiate, however
with their premium prices, profit margins and profits, they are in a poor
position to say they can't afford to pay."

Exactly, they want their cake and eat it too - plus eat everybody else's cake as
well. Seems totally FRAND if you happen to be Apple.

[ Reply to This | Parent | # ]

How about this?
Authored by: Anonymous on Wednesday, October 10 2012 @ 07:23 PM EDT
Okay FRAND 2.5% of the value of a device. Now take all the patents that are
involved and divide up that 2.5% between them. Total patent FRAND cost is
always 2.5%. That could actually stimulate the market since all would know the
cost of doing business in this area.

[ Reply to This | Parent | # ]

  • How about this? - Authored by: Anonymous on Wednesday, October 10 2012 @ 07:48 PM EDT
That price isn't really that relevant
Authored by: Gringo_ on Wednesday, October 10 2012 @ 07:58 PM EDT

In the first place, that 2.2% was only intended as a starting point for negotiations. Beyond that, I suspect few companies pay even 1% They all work it out with cross licensing deals or even other considerations, like partnerships in limited areas. In the end after all the wheeling and dealing and horse trading perhaps no money is even exchanged. Undoubtedly Samsung is willing to deal with Apple, but Apple is only interested in carrying out it's founders wishes to destroy Android, and Android OEM's along with it.

[ Reply to This | Parent | # ]

High Value Products are also high Margin Products
Authored by: Anonymous on Thursday, October 11 2012 @ 11:40 AM EDT
"Using the ASP of the end user product as the royalty base
[is] discriminating against companies like Apple who sell
high-value products."

Apple doesn't seem to have trouble taking 30% off the top of
all its App Store sales.

[ Reply to This | Parent | # ]

High Value Products are also high Margin Products
Authored by: HenchmenResource on Thursday, October 11 2012 @ 02:27 PM EDT
From what I have seen watching apple the last 10 years or so it seems that this is a running theme. I recall when they made the switch from Power processors to Intel a similar matter surfaced. Leading up to the move Apple made a lot of claims about IBM based on the speed of their processors, IBM's ability to keep up with demand, etc.

The claims about keeping up with demand seemed to hold a little water but reports from the time suggested that issue had been resolved prior to Apples announcement. Further evidence that the supply problems were resolved is by the purchases made by the three big game console builders all of which by reports far exceeded the quantities Apple was asking for. The claims about speed also on the surface appeared to be legitimate. At the time of the announcement I worked for the photo and graphics departments of a daily newspaper, the photo department had a single Pentium 4 Windows machine and the graphics department had top of the line dual G5 machines. Running Adobe programs on the Windows machine was a joy, they worked and responded quickly, on the G5 machines not nearly as smooth. To test it further I worked with the IT department and we ran some benchmarks, again the G5 lagged far behind the Pentium 4. The problem came when we installed Linux on the G5 and ran the benchmarks again, the G5 running linux blew the pentium 4 away. This led the IT department and myself to believe that Apple want quite telling the whole truth. Then the other shoe dropped, I remember reading a series of leaked emails between Apple and IBM and they showed that a more likely reason for apple moving to Intel was that Apple wanted to pay IBM a lot less than for the Power based G5's than IBM was willing to sell them. The negotiation appeared to go something similar to the following ( I am just making these numbers up for demonstration purposes I honestly cant remember if the actual numbers were ever released):

Apple: we want 300,000 chips but we want you to sell them to us at the price you list for 500,000-1,000,000 quantities.
IBM: That's a interesting thought, we would be happy to sell them to you at that price, but in addition to the 300,000 you want you will also need to purchase an another 200,000.
Apple: We think you might change your tune if we say we are going to use Intel instead.
IBM: That's your choice, there's the door if you change your mind you know where we are. Oh and on your way out could you let Microsoft, Nintendo and Sony know we are ready to see them.

Ok so I may have taken a little creative licence on that conversation, seeing as I was not actually present, but it seems to me that Apple has this mentality that their suppliers should be so overjoyed that their products are being used by Apple that they should just be willing to hand them over. If they don't then Apple will be happy to drag their names through the mud in front of the public, courts or anyone else they can find. This is one of the main reasons I long ago decided Apple products are not for me despite the fact that I think that they really do make beautiful products.

[ Reply to This | Parent | # ]

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