Will the Patent-Charging Business Model, Like the One Used by Qualcomm, Die Out?
Li Na
DATE:  Jan 14 2019
/ SOURCE:  yicai
Will the Patent-Charging Business Model, Like the One Used by Qualcomm, Die Out? Will the Patent-Charging Business Model, Like the One Used by Qualcomm, Die Out?

No. The model will change but not end this year.

The patent lawsuits between Qualcomm and Apple have stirred up controversy surrounding the patent-charging model. Two thirds of Qualcomm profits now come from its patent business, twice that of its chip unit. Apple believes the chipmaker's business model is built on obsolete standards as smartphone profits decline, allowing Qualcomm to strengthen its position by charging excessive royalties.

Android vendors are also expected to follow suit and spurn the model, but to what extent these phonemakers can challenge Qualcomm remains to be seen. 

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Keywords:   Predictions2019,Patent,Qualcomm