Breaking the Qualcomm tax
The FTC is investigating Qualcomm, and Apple is suing them. Tim Cuplan, writing for Bloomberg, follows the money:
I heard similar a few years ago. Basically that you (Apple) pay, and pay a lot, regardless of whether or not you need the technology. For example, CDMA outside Verizon or Sprint. If you ever wondered why there was a $130 surcharge for iPads with cellular radios, that's the primary reason. Think about what that would translate into for a $3,000 MacBook Pro... and maybe why we don't have that MacBook Pro.
Either way, there are issues of standards-based FRAND technology patents, reasonableness, abusive practices, and the future of wireless to contend with here. Qualcomm — and CDMA — have arguably been holding us back for years.
Depending on how the FTC investigation and lawsuits turn out, that could finally be over.
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Rene Ritchie is one of the most respected Apple analysts in the business, reaching a combined audience of over 40 million readers a month. His YouTube channel, Vector, has over 90 thousand subscribers and 14 million views and his podcasts, including Debug, have been downloaded over 20 million times. He also regularly co-hosts MacBreak Weekly for the TWiT network and co-hosted CES Live! and Talk Mobile. Based in Montreal, Rene is a former director of product marketing, web developer, and graphic designer. He's authored several books and appeared on numerous television and radio segments to discuss Apple and the technology industry. When not working, he likes to cook, grapple, and spend time with his friends and family.
Either this a misleading or misinformed quote, or the same rules don't apply to the iPad and the article gives a bad example.
You could also conclude that it should cost no more than $130 to add cellular to a laptop.
On the other hand, Apple has always, and will always, charge a huge premium for memory which they did not design or invent, both RAM & storage, for every type of product. They usually use the best available for either, but it's designed and made by others, with an unusually high margin. Now they have been modifying industry-standard connections of storage to a proprietary connection, and have been soldering in RAM for years & now soldering in storage. I assume this is so users cannot buy a cheaper model with less RAM & storage then upgrade later, thus monopolizing & consuming that market.
I assume, and always have, that it is Apple controlling the price of adding cellular to the iPads. I have no proof for or against this assumption other than the previously stated high margins and proprietary practices.
I do question why no Apple laptop, nor any (maybe very few?) non-Apple laptops have cellular built-in. Especially since there are $999 Apple laptops, not only $3,000.
I'm fine with Apple paying royalties to any technology which they use; it should be a fair share for both companies, and ultimately the customer. I don't work for free and I would fight tooth and nail if Apple ever "stole" from me or "cheated" me out what's a fair payment. I'm not saying that's exactly the case here, I don't know the exact agreements.
I am saying that Apple doesn't need to hurt another company only to make a higher profit from their toys. They make and have enough money to operate their faltering company without stepping on and suing everyone in their wake. I highly doubt any reduction in cost to Apple will translate to a reduction in price to Apple customers.
To claim this is to push towards the next generation of cellular tech is questionable. If Apple has the courage to remove a headphone port from the world's most popular phone (partial sarcasm) surely they can push the cellular industry to the next generation of connectivity, but only if it's a technology from which they can increase profits (not sarcasm). Sent from the iMore App
"the new 85 percent / 15 percent revenue share will kick in (applied per subscriber)"
So when Apple does it is OK, but no others do it to Apple it's being label as abusive? You are such a hypocrite. Reference URL: http://www.theverge.com/2016/6/8/11880730/apple-app-store-subscription-u...