Reply to post: Why does the final product price determine the royalty?

Well, that escalated quickly: Qualcomm demands iPhone, iPad sales ban in America

Alan Penzotti
Mushroom

Why does the final product price determine the royalty?

If Apple were smart, it would re-introduce the iPod shuffle with the Qualcomm chipsets, but unused in implementation. Produce 100B of these units. Sell or give away 80B of these units, and then scrap 10B of these units to salvage the chipsets for their higher priced kit, and destroy 10B of these units as "unsaleable/unsalvageable." That way the cost per chipset would be cheaper.

Another way would be to use these iPod Shuffle units as a concealed "plug in module" inside these final revenue shipping units.

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