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The actual numbers: - Fiscal year 2017 revenue was $23.2 billion - Fiscal year 2017 pre-tax profit was $7.5 billion 1/6 of a single year's profits for a prac
by MagnumOpus 9y ago
The actual numbers:
- Fiscal year 2017 revenue was $23.2 billion
- Fiscal year 2017 pre-tax profit was $7.5 billion
1/6 of a single year's profits for a practice that cemented their dominant market position for 6-7 years is not punitive.
- raphaelj 9y agoYes, but the fine should only cover Qualcomm's EU activities. EU account for about 15% of the smartphone market sales, so it's more like one year worth or EU profits.
- detuur 9y agoDo note, this is only a punitive fine. The fine is limited to 4% of annual revenue (afaik), but it is a regulatory acknowledgement of wrongdoing. The fact that this fine is at the near maximum of the limit also cements the idea that this was a grave violation. This opens up the door to lawsuits from competitors, which can impose damages which are much, much greater, which in my knowledge aren't limited by revenue and can easily exceed all the money a company has ever made. This is the sort of stuff that can kill your business. Qualcomm has to tread very carefully now.