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Considering Ericsson revenue/profit was on the order of 30/1.3 billion USD in 2014, and the iPhone only revenue will be somewhere between 100 and 150 billion fo
by rdancer 11y ago
Considering Ericsson revenue/profit was on the order of 30/1.3 billion USD in 2014, and the iPhone only revenue will be somewhere between 100 and 150 billion for 2015 only and going up, this is great news for Ericsson.
- gjm11 11y agoJust to be clear: it's Apple's iPhone revenue that's on the order of $100-150B for 2015. So Ericsson would be getting something like $500M or so.
- Someone 11y agoGiven that there was a license agreement on the same technology earlier, I think it is a reasonable guess that about a third of Ericsson's profits came from Apple in 2014.
- rdancer 11y agoThat's not a very useful way to look at it. (1) If Ericsson overall costs were just 4% bigger, you would be saying: "10000% of Ericsson profits came from Apple", (2) R&D that led to those patents likely had staggering costs, which may or may not have been fully amortized. It's not just the engineer salaries of those who filed the patents either, likely the whole company structure, buildings and all, were instrumental in getting those technologies developed. So while the cashflow is mostly free, it is not pure profit.