Wait, wait. They're saying that competition is stifled in the baseband processor market because the main supplier in the market is charging too much? That makes no sense at all. That would encourage competition, not stifle it.
Also, you can't maintain that it's unfair to charge Apple more in licensing (they both agreed to the contract, right?) just because they make more money unless you're willing to acknowledge the gross injustice of graduated income taxes. If one is wrong, so is the other.
Also, Tim's argument that the more money the make the more they have to pay to Qualcomm doesn't hold logical water either, since they would almost certainly always come out ahead regardless of the license fees unless the contract was negotiated by a tantric chimpanzee. In fact... there is absolutely nothing about this situation that makes sense at all. Apple needs to sit down, shut up, and pay what they agreed to.