This is the biggest problem. All other complaints on this board are just ripples of this big failure. When the company going uphill, the internal conflicts can be suppressed. After the business model fails, the struggle for the shrinking resources can only lead to implosion. Think seriously about your future even if you survive this round of layoff!
6 replies (most recent on top)
The solution is unbundling. Charge separately for silicon, software, consulting, and patent indemities. Companies will mostly buy the full stack because time to market is king. Total price can be comparable to displaced licensing revenue. Save more money by sacking lawyers.
And what are the other alternatives. Keeping my fingers crossed for NXP. Not the deal ( assuming it will go through in some form or the other) but on the execution to make anticipated $.
Remember the stock price of ~$55 has priced in NXP deal.
Without this business model, there’s no way Q as a chip company can compete with the Asian companies. Giving up the business model is purely suicide.
The biz model of strong arming customers to pay huge royalty and fee for technology is not sustainable for Qualcomm at the current rate with this much opex..
Qualcomm would need to bring down royalty fee along with cut expenses.
This model worked when Qualcomm had hegemony in cdma.. not anymore.
This hegemonious behavior was the one customers decided not to use qcoms technology for 4g but to use LTE so that a single company like Qualcomm does not become dominant player and strong arm customers again
I keep hearing that their business model is failing, but at the same time, they signed a licensing deal with Samsung and other companies. They might resolve the issue with Huawei soon. Understood that paying a royalty based on the selling price of the phone seems outdated, but they are still getting companies to sign on.
Apple is king right now, but they know they are in trouble. Stock price was supposed to exceed $1 trillion some time ago, but now Amazon will get there earlier. They are desperate to increase profit margins, and therefore want to play hardball with Qcom.
Agreed:Business model is failing.
The reason: this is a company Without failures. At least the failures cannot be discussed publicly. This is a rotted buracacy where everyone raced to catch credit, leave unannounced failures to unannounced scapegoat.
PJ, you should walk away with grace not desperation.
SM , admit the failure and do something for remedy.