subtraction

The passage around this formula

This is the same fixed-cost-against-marginal-cost structure that governs any make-versus-buy or capital-versus-operating-expense decision, and it is the structure Qualcomm’s marginal-cost claim silently assumes has already been paid off. Palkhiwala’s statement that an extra inference event is “effectively free” once the device is purchased is a claim about $c_{d}$ alone; it says nothing about $C_{\mathrm{dev}}$ or U , both of which are paid by the model’s operator, not amortized into the price the customer already paid for the phone. Qualcomm’s own public argument for why $c_{\mathrm{cloud}}$ matters so much elsewhere in this equation is worth pairing with the CFO’s quote: the company’s 2023…

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