Apple will determine the fate of Broadcom acquisition of Qualcomm
According to "The New York Times" Beijing time on November 10 reported that Apple may decide Broadcom to spend $ 105 billion acquisition of Qualcomm's success or failure of the patent royalties with Apple iPhone, making Qualcomm face hostile takeovers by the risk of rivals Qualcomm may be able to keep the company independent if Apple and Qualcomm are obliged to do so - but it is up to Apple to consider bigger brethren would be more committed to providing them with components or will be less friendly.
The dispute between Apple and Qualcomm stems from the way that Qualcomm charges royalties on mobile phones, and neither Apple nor Qualcomm disclosed the royalties it charges the latter, but industry analysts generally agree that Qualcomm's royalties for each phone $ 10. Apple sued Qualcomm this year, and informed suppliers to stop paying royalties to Qualcomm to suppress the Qualcomm shares fell $ 10 on Thursday - the day before the media reports Broadcom intends to buy Qualcomm news, Qualcomm shares closed at 54.84 Dollars.
Qualcomm and Apple Computer will reduce the attractiveness of Broadcom's bid of $ 70 per share and analysts expect Apple will sell about 250 million handsets next year.If Qualcomm agreed to lower the royalty to $ 7.5 per handset and pay an 85% tax After the profitability calculation, Qualcomm will get 1.6 billion in net profit if calculated at 10 times earnings, Qualcomm will therefore increase market value of 16 billion US dollars - or about 11 US dollars per share This does not include Qualcomm previously owed royalties .
How Apple chooses it depends on which chip maker Apple prefers to work with and allegedly hurdles Qualcomm Broadcom chief executive Hock Tan to negotiate a patent royalties with Apple Open-minded, the acquisition of Qualcomm saved $ 3 billion a year in costs, giving Broadcom the incentive to profit-grab royalties on royalties, winning the favor of Apple chief executive Tim Cook and potentially adding to Apple's Chip sales.
Although Hawk admitted that he will prioritize maximizing the return on Qualcomm's acquisition of Qualcomm, a major motivation for acquiring competitors is typically to acquire customers, which already make up 10% of Broadcom's revenue, and Broadcom, Qualcomm may face lengthy antitrust scrutiny, meaning Broadcom will not be able to renegotiate royalties with Apple for at least a year.