Qualcomm & Wireless

Overview
Greg Le Beau
Corporate Market Intelligence
 Fortune 500 Company

Celebrating more than 25 years of driving the evolution

of wireless communications

Making wireless more personal, affordable and

accessible to people everywhere

World’s largest fabless semiconductor

company, #1 in wireless

Member of the S&P 100 & 500 Indexes

2011 All-America
Executive Team
Award Winner
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 Engines for Growth

QTL QCT QWI

Technology Semiconductor Wireless

Licensing Business Internet
A leader in Licensing World’s Largest Fabless To Accelerate
Wireless Technologies Semiconductor Company Time to Market

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 Leading the Semiconductor Industry

#
1 1 1 9
WIRELESS
#
FABLESS
#
RFIC
#
SEMICONDUCTOR
COMPANY COMPANY COMPANY COMPANY

Source: iSuppli for Dec. 2010

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 Qualcomm’s Unique Business Model
A TECHNOLOGY ENABLER FOR THE ENTIRE MOBILE VALUE CHAIN

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 Continuing Strategic R&D Investments
QUALCOMM GAAP FISCAL YEAR R&D EXPENDITURES
>$15.4B
Cumulative Total R&D Investment

$3 25%
R&D Expenditures (Billions)

20%

% of Revenue
$2
15%

10%
$1

5%

$0 0%
2005 2006 2007 2008 2009 2010

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 Expanding the Wireless Ecosystem

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Industry Trends
 Industry Forces Are Aligning
DRIVING INNOVATION AND GROWTH

DEVICES APPLICATIONS & SERVICES NETWORKS

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 The Biggest Platform
in the History of Mankind

>5 BILLION WIRELESS SUBSCRIBERS WORLDWIDE

>1B ~3.1B
3G SUBSCRIPTIONS 3G SUBSCRIPTIONS
NOW BY 2015

10 Source: Wireless Intelligence, Q4, 2010

 Subscribers: Accelerated 2G to 3G Migration
Subscriptions (Millions)

5,000 ~3.1B
4,500 3G subs
4,000
3,500
3,000
2,500
2,000 2G 3G

1,500
1,000
500
0
2010 2011 2012 2013 2014 2015

Total 3G subscribers increased 30% y-o-y to be 1.31B as of Mar’11

Total of 2billion new 3G subs are estimated to be added in the next five years

Note: 3G includes CDMA2000, WCDMA, TD-SCDMA

11 Source: Wireless Intelligence estimates as of Apr 18, 2011 for quarter ending Mar 31, 2011
 Strong Growth Estimated For 3G Handset
Shipments
~ 1B
Handset Shipments* (Millions) 3G Handsets
1200

1000

800
2G
600

3G
400

200

0
2010 2011 2012 2013 2014 2015

3G handset shipments estimated to grow ~50% from 2011 to 2015 versus 23%
growth in total handset shipments during the same period

Note: 3G includes CDMA2000, WCDMA and TD-SCDMA; does not include gray market shipments

Sources: Average of Strategy Analytics (Dec-10), IDC (Mar-11), ABI Research (Mar-11), Informa Telecoms and Media (Jan-11) and Yankee Group (Mar-11)
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 Accelerated Growth of Smartphones in Mobile
Devices Market
>1B
Smartphone Sales
Smartphone Sales (Millions)
1,200 50%
Smartphones 45%
1,000 Smartphones as a % of Total Handsets 40%
35%
800
30%
600 25%
20%
400
15%
10%
200
5%
0 0%
2010 2011 2012 2013 2014 2015

Nearly 4B smartphone sales estimated between 2011 to 2015

Smartphone sales surpassed PCs for the first time in Q410

Sources: Smartphone Sales: Gartner Inc. Forecast: Mobile Devices forecast update, 1Q11, Update, Carolina Milanesi et al March 17,2011
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 Connecting the Unconnected

BY END OF CY2011, EMERGING REGIONS

ARE EXPECTED TO REPRESENT

>50% OF 3G HANDSET SHIPMENTS

Source: Informa Telecoms & Media (Dec ‘10)

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 3G Will Continue to Drive Mobile Broadband
Connections This Decade
Subscriptions (Millions)
~2.1B HSPA Subs
2,500

2,000 HSPA Family

EV-DO Family
1,500

TD-SCDMA
1,000
~360M EV-DO Subs
LTE

500
WiMax

0
2010 2011 2012 2013 2014 2015

3G* MBB subscriptions to surpass 1B by 2012

3G to contribute ~90% of mobile broadband subscriptions by 2015

Over 2B new MBB subscriptions to be added between 2011-2015

Note:* 3G includes EV-DO family, HSPA family and TD-SCDMA,

Source: HSPA, EV-DO ,TD-SCDMA and LTE subs – Wireless Intelligence (Apr’11) and WiMax - ABI (Mar’11)
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 Mobile Dominates Growth in Global
Broadband Subscriptions
~3B MBB subs and
Subscriptions (Millions) ~80% of Total BB
3500

3000 Fixed Mobile

2500

2000

1500

1000

500

0
2010 2011 2012 2013 2014 2015

Mobile broadband surpassed fixed in 2010

MBB subscriptions estimated to grow at 40% CAGR compared to 10% for fixed BB

CAGR calculated for 2010-2015

Note: Mobile Broadband includes EV-DO family, HSPA Family, TD-SCDMA, LTE and Mobile WiMax
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Source: HSPA, EV-DO ,TD-SCDMA and LTE subs – Wireless Intelligence (Apr’11) and WiMax - ABI (Mar’11); Fixed – Informa Telecoms & Media (WBIS) Apr’11
 The Evolving Mobile Experience

COMPUTING

ENTERTAINMENT

MESSAGING
VOICE

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 THE MOBILE INTERNET
SHIFTING TO A CARRY ALONG EXPERIENCE

Always Context Leverages Highly

Real-time
with You Aware the Cloud Personalized
 The Internet of Everything
The Next Era of Networking and Computing,
Where Everything is Intelligently Connected

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 The Internet of Everything Opportunity

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 Interest in Internet of Everything
Connectivity Spans a Number of Verticals

CONSUMER
ELECTRONICS TRANSPORTATION UTILITIES BUILDINGS
 eReaders  Automotive  Smart Grid  Home Area Networks
 Gaming Devices  Commercial  Electric Vehicle Charging  Commercial –
 Picture Frames  Aftermarket Infrastructure HVAC and Lighting
 Smart Metering

TRACKING AND INDUSTRIAL AND

HEALTHCARE SECURITY MANUFACTURING RETAIL

 Remote Patient  Asset Tracking  Asset Monitoring,  Vending

Monitoring  Logistics Control Access and Control  Remote Information
 Wellness Programs  Resource Automation Displays
 Video Surveillance
 ATMs

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 The Internet of Everything has Given Rise to
New Device Categories and User Experiences

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 Industry Trends are Aligning

Modules &
Sensors

Regulatory Distributed
Developments Computing

Applications
& Services
Internet of Cellular

Everything Networks

Service Wireless
Delivery Carrier
Platforms Involvement

Low
Connectivity
Costs/Tariffs

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 Cellular is at the Core of the Internet of Everything

Content
Management
Direct Platforms
Connectivity
Gateway
Connectivity

Field Service
Personnel

Secure IP Network
Concentrator
Backhaul Customer
Service

Direct Application
Connectivity Management Consumers
Platforms

Smart Meter /
HAN Connectivity
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 Operators Worldwide Show Strong Data Growth

27% Growth 24% Growth 22% Growth 24% Growth

$5.5B $5.1B
£1.04B £1.32B
$477M
$4. 5B $4.1B
$383M

Dec’09 Dec’10 1H’10/Dec’09 1H’11/ Dec’10 1Q’10 1Q’11 1Q’10 1Q’11

Data Revenues (British £) Mobile Broadband Data Data Revenues (US $) Data Revenues (US $)
Revenues (Australian $)

25 Sources: Company reports from Vodafone, Telstra, Verizon and AT&T

How Qualcomm is
Accelerating Connectivity
 Global R&D Organization

Nuremberg, Germany

Vienna, Austria Seoul, S. Korea

Santa Clara, CA
Beijing,
China
San Diego, CA
Bridgewater, NJ
Hyderabad, India
Bangalore, India

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 Driving Device Evolution
GROWING THE MARKET BY CREATING MORE CHOICES
FOR OPERATORS AND CONSUMERS

INTEGRATION MULTIMEDIA PROCESSING MULTIMODE FOOTPRINT POWER

CONSUMPTION

Low-cost 3G Support for Multiple 1+ GHz

Handsets for Popular Operating Mobile
Emerging Markets Systems Processors

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 Taking the Mobile Internet to the Next Level
SNAPDRAGON ENABLES A NEW GENERATION OF SMART DEVICES

ALWAYS-ON ALL-DAY INSTANT ON LOCATION MULTIMEDIA UNPRCEDENTED

CONNECTIVITY BATTERY LIFE AWARE PERFORMANCE POWER & SPEED

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 Focus on Improving Battery Life

LOW-POWER CONSUMPTION LOW-POWER

1+GHZ PROCESSOR CONSUMPTION DISPLAY

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 Qualcomm Supports the Leading High-level
Operating Systems

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 Real World View
LIVE CAMERA VIEW

Virtual Content
INFORMATION ABOUT POINTS
OF INTEREST

Content
placement
inaccurate due to
compass error

GPS and
Compass-based
Augmented
Reality Experience
GOOD FOR ROUGH LOCATION
OF ITEMS OUTSIDE OUR FIELD
OF VIEW

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 Qualcomm Atheros
A LEADER IN LAN TECHNOLOGIES, PROVIDING NETWORKING AND
CONNECTIVITY SOLUTIONS

NETWORKING COMPUTING CONSUMER

• Home- Retail & • Notebooks • Mobile Phones
Carrier • Desktops, AIOs • Tablets
• Enterprise • Portable CE
• Smart Grid / Smart • Fixed CE
Home

Switches, Routers, Gateways, PLC PCs, AIOs Handsets, Gaming, Tablets, DTV, Blu-ray
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For more information on Qualcomm, visit us at:

www.qualcomm.com
www.qualcomm.com/blog