Corporate Overview Where ideas connect “ Anything you can do on a computer, you will soon do on your mobile device. Looking ahead, your phone will be like your digital sixth sense. It will learn what you like, and as you walk down the street, it will display ‘cyber signs’ with information and offers based on your preferences. Qualcomm is giving you personal access to your own digital world.” Dr. Paul E. Jacobs, Chief Executive Officer See the full interview video at www.qualcomm.com/overview there’s Qualcomm. Qualcomm’s technology connects you wherever you are in the world. We manufacture wireless chipsets, license technology and provide communications services around the world. In a global economy, we are the link to markets and opportunity. We help bring minds and ideas together. . You are in Xi’an, two hours south of I am in Granville, two hours south of Cleveland. In between us is air and technology. The air does nothing. The technology buzzes in my pocket and there you are. A terracotta warrior in front of you. Which you’ve photographed and put in front of me. And for a moment we are held together across time and space. Together between the physical and the virtual world. Between here and now. Between idea and execution. Between today and tomorrow. A meeting breaks out in the unlikeliest of places. Under an elm tree in a park near my little one’s kindergarten. In less than 30 minutes she will bound through the door of her classroom. And I will wave my hands over my head and stand on my tip-toes so she can see me. But until then, there are connections to be made. Details to be ironed out. For 30 minutes I will be focused and productive. I will be supported by technology that allows me to be both the executive I am... and the mother I will be—in about 27 minutes. These are just two of the many millions of stories Qualcomm is part of. Read about how we are empowering, accelerating and transforming the future of wireless. Qualcomm Corporate Overview 3 people interacting with technology Imagine the world, organized around you. Innovative wireless technologies provide the ultimate in personalization, putting you in control of what you want, where you want it. Explore the wireless world, one story at a time. empowering Dream on When I was little I dreamed I could fly. Today that means boarding passes and baggage fees, but I get the same rush of freedom when I travel in a world without wires. I land and check into my hotel. The sun is fading as I wander to a nearby park. Instantly I am online, reconnecting with deadlines and dinner plans. The world is my hotspot. I cross continents and time zones. I am everywhere, always connected and so fast that no one can catch me. Smartbooks* Combining the simplicity and connectivity of smartphones with the power and usability of laptops, a smartbook is a new class of mobile device that lets you work and play all day—wherever you are. Snapdragon™ Qualcomm’s Snapdragon platform offers an unprec- edented combination of processing performance and optimized power consumption for the new generation of smart mobile devices. Internet anywhere With Gobi™ global mobile Internet technology, the world is your hotspot. The embedded 3G module gives your notebook computer high-speed Internet access anywhere life takes you. Bright idea Low power and high impact, Qualcomm’s reflective mirasol display technology offers full color, video capability and superior visibility even in direct sunlight. In a word, brilliant. Mobile web usage is growing 34% year-over-year.1 1 The Nielsen Company, October 2009 * In the territory of the Federal Republic of Germany, the use of the term “Smartbook” in connection with portable computers is reserved exclusively to Smartbook AG, Germany. Qualcomm Corporate Overview 5 Game on Around here, Sunday is known as sports day. I’ve got hot wings, cold beer, and a warm spot on the couch. Then the boss calls. Ten minutes later, I’m in a cab. My suit is in the trunk, my smartbook is in my backpack, and my mobile TV is in my hand. The traffic is a blur, but the live action is crystal clear. As we pull into the airport, my team is down by one. Then the power forward intercepts the pass. He shoots. He scores. And it’s nothing but net. 13.4 million Americans watch video on their mobile phones.1 Tune in An unmatched mobile entertainment service, FLO TV™ brings live television from the world’s best-known entertainment brands to a screen near you. Like the one in your pocket. Growth driver Chrysler Group LLC® is the first automaker to offer live mobile TV through FLO TV Auto Entertainment. The dealer-installed entertain- ment package makes for a smooth ride. New channels Now available at Amazon.com®, Best Buy® and RadioShack®, the FLO TV Personal Television is a pocket-sized, dedicated mobile TV device that puts fun and functionality at your fingertips. 6 Qualcomm Corporate Overview 1 Nielsen Company, May 2009 empowering Tag, anyone? The world is a big place, but I like mine up close and personal. So when we get to Paris, my phone is my digital tour guide. Today is our first day, and I map our way to the Eiffel Tower. We’re in line for tickets when I get a virtual tag from my friend Uli: “Check out the great cafe across the street.” We’re living in the moment, so why not? Let me tell you, beignets have never tasted so good. Mobile lifestyle In a world filled with mobile content, Xiam®, a Qualcomm company, brings together personal preferences, locations and recommenda- tions so you can choose what’s right for you. On location Today Qualcomm’s gpsOne® technology delivers unparal- leled positional accuracy that already enables a host of applications—from turn-by- turn directions to finding friends and points of interest. 1/2 billion mobile devices featuring Qualcomm GPS technology have been shipped 2 Operator announcements and Wireless Intelligence estimates as of July 20, 2009 worldwide to date.2 Qualcomm Corporate Overview 7 Moving at life speed At our house, I’m in charge of the morning scramble, bedtime stories and everything in between. To simplify my life, I use wireless in ways I never imagined. I bank on my mobile phone at soccer practice, get real-time recommendations on where to shop and even connect with my doctor. It’s like having my very own personal assistant in my pocket. Going wireless keeps everything in balance, so I can focus on what matters most. Like whose turn it is to carpool. Retail therapy With Plaza Mobile Internet™, your mobile device becomes a catalog of wireless widgets. Get personalized recommendations, news, weather and shopping applications, plus social networking, photo sharing and video. Mobile commerce With Mobile Banking from Firethorn Holdings, LLC,® a Qualcomm company, you can view accounts, transfer balances and pay bills all from your mobile device. If you want to share and exchange gift cards, receive and redeem offers and view loyalty card points or balances, SWAGGSM from Firethorn lets you do it all while on the go. Wireless wellness Wireless healthcare technologies promise to redefine modern medicine. Qualcomm is working to move innovations from the laboratory to the doctor’s office so we can live longer, healthier lives. Mobile apps are a $343 million a year industry. By 2013, revenues are expected to increase tenfold to $4.2 billion.1 1 CBS, Daniel Sieberg, November 2009 8 Qualcomm Corporate Overview empowering At Qualcomm, we accelerate mobility. For nearly 25 years we have been moving the global wireless industry forward. Today we are mobilizing technologies, experiences and opportunities for everyone across the wireless ecosystem. acceleratingadvancing the industry Our business model It has proven so successful that today we license to more than 190 wireless device manufacturers around the world. innovative solutions advanced devices & services chips & software licensing services & apps operators manufacturers Partners web co’s & etailers media, services & applications Qualcomm R&D “The Internet of Everything” increasing R&D investment increased revenue Qualcomm R&D Partners “Internet of Everything” Driving the entire industry forward. Making devices faster, content richer and customer relationships stronger. A future where wireless networks connect everything in our lives. Our innovation As the line between consumer electronics, computers and mobile communi- cation devices disappear, our business model is redefining the way people incorporate wireless devices and services into everyday life. It all starts with our commitment to research and development, which enables us to build a complete technology roadmap for innovation. Then our open licensing gives all companies—big or small—an equal opportunity to shape the future of wireless. Our licensing program is the engine that drives the entire industry forward. We invest, innovate and inspire growth for our partners—then start all over again. And while our heritage makes us the world leader in next-generation mobile technologies, it’s our people who set us apart. Innovation is more than what we do—it’s who we are. 10 Qualcomm Corporate Overview accelerating Our partners In an increasingly open mobile world, we are developing new capabilities with our partners to give people a uniquely personal mobile experience. Our partnerships accelerate growth for everyone—from operators and device manufacturers to Internet companies, e-tailers, and mobile content providers. Our best-in-class chipsets power handsets, smartbooks, e-books and beyond, while our engineering support services deliver total, integrated solutions. We enable opportunities across the entire wireless value chain, by making devices faster, content richer and customer relationships stronger. Today, innovation continues to drive our partnerships. For many operators, that means growing a thriving data business while taking customers seamlessly from 2G to 3G wireless technology today—and on to 4G in the years to come. As a forward-thinking company, we are always looking ahead—not just to the next quarter, but far down the line. Our future Looking ahead, we see an era of total connectivity. High-speed wireless networks will connect everything in your life—not just your phone and your laptop, but your car, your video camera and many items throughout your home. Machine-to-machine communication will enable a smarter world. At Qualcomm, we think of it as the Internet of Everything. Your mobile devices will act as your sixth sense, suggesting activities and content based on your preferences, schedule and location. Each wireless discovery will be personal to you. And we believe that’s only the beginning. In a connected world, we can take on our most fundamental problems—to save energy, use water wisely and deliver healthcare more efficiently. And we see Qualcomm’s innovations embedded in the technology, every step of the way. More than 615 commercial 3G operators worldwide rely on technology developed by Qualcomm, and that number continues to grow. Qualcomm Corporate Overview 11 impact on the world Opportunities for everyone. For Qualcomm, expanding wireless worldwide is more than a business objective—it’s a global imperative. We are transforming lives by connecting people for the first time. And that means a world where everyone can make a difference. 12 Qualcomm Corporate Overview transforming 3G handset sales in Mainland China may reach 50–100 million in 2010 and 500 million by 2014.1 Growing together Well beyond Beijing, wireless opportunity is calling across China, the largest global market for tele- communications and mobile broadband. In 2009, the country’s three largest telecom operators began the world’s biggest deployment of 3G wireless networks, reaching more than 300 cities. In rural China, mobile broadband gives doctors instant access to medical information. With per- sonal computers and 3G handsets, they can build their medical knowledge anytime, anywhere. In countryside clinics, video conferencing with experts and online training means better care for women and children who are at greater health risks. Qualcomm is working on many fronts to provide our Chinese partners with the world’s most advanced wireless technologies. Now they are emerging as a new global force in the mobile industry, as they expand 3G across China and grow their exports worldwide. For the wireless ecosphere, the opportunity is as big as China itself. 1 eepw.com.cn “In Mainland China’s 3G Era, Qualcomm and Mediatek Are the First to Benefit,” August 2009 Mobile broadband will surpass fixed broadband in Brazil by 2011, reaching nearly 27 million data card users in 2014 from 1.5 million in 2008.1 High speed, high style In Latin America, demand is pushing the large- scale migration from 2G to 3G wireless technology. Here and around the world, the cost of devices is coming down while performance and features are going up. Consumers and business users are snapping up new devices at one of the highest replacement rates in the industry. Meanwhile, carriers are leapfrogging each other with faster and faster networks. In Brazil, the most populous country in Latin America, all four operators are transitioning to 3G. Surrounded by a blanket of mobile broadband, many people in São Paolo may never think about getting Internet access any other way. Latin America is where high speed meets high style. From mobile music to retail shopping applications, Qualcomm’s innovations are enabling a faster, more personalized wireless experience across the region. 14 Qualcomm Corporate Overview 1 Pyramid Research Report: Reported in Cellular News, July 2009 transforming Mobilizing change Africa is a vast frontier for wireless. Unlike costly landline infrastructure, wireless networks are more practical for reaching even the most remote villages, linking them to the outside world. And in Africa, perhaps more than any other emerging market, wireless access is nothing short of transformative. Millions of people—most of whom have never had a bank account—now use mobile phones to transfer money, make payments and withdraw cash. Farmers use their phones to track crop yields and diseases and turn on water wells, while political activists use theirs to monitor elections and empower voters. Recognizing the life-changing power of wireless, Qualcomm and its partners have teamed up to bring affordable technologies, products and services to millions of underserved people in Africa. Because it’s not just good for business—it’s good for everyone. The mobile phone industry in Africa has defied the global economic crisis with a monumental boom in mobile subscriptions between 2003 and 2008. In five years the number of subscriptions grew by more than 500%.2 2 United Nations Report, October 2009 The Internet, unplugged Europeans have long had a love affair with their wireless phones. So it’s no surprise that 3G growth surpassed 2G in 2009. With some of the highest mobile penetration rates on the planet, Europe remains a bellwether market. Europe has seen the future of the Internet, and it’s mobile in every way. According to Strategy Analytics, nearly half of mobile phone subscribers in Western Europe will access the Internet via their handsets by 2013. In what’s been called “donglemania,” high-speed mobile data is taking off across the continent. From mobile warriors to regular consumers, everyone is taking the Internet on the road. With better prices and faster uploads and downloads, what’s not to love? It’s truly the Internet of everything, whenever you want it and wherever you happen to be. In Q2 ’09, mobile penetration in Eastern Europe rose to 115%. Over half of the region’s markets have now reached 100% penetration.1 1 Wireless Intelligence, October 2009 16 Qualcomm Corporate Overview transforming Mobile broadband subscriptions would top 600 million in 2009, with fixed broadband subscribers at 500 million.2 One nation, connected Around the world and across the United States, mobile broadband is the fastest and most afford- able way to bring high-speed Internet access to everyone. High-speed 3G wireless technology connects people to markets and opportunity wherever they are. Broadband is not a luxury, but a necessity in the 21st century economy. It is the link to good jobs, quality education and better healthcare. That’s why U.S. President Barack Obama wants to expand broadband networks—to underserved rural communities and urban neighborhoods where people can least afford it, but may need it most. Whether you are on Wall Street or traveling across one of America’s wide-open spaces, mobile broadband levels the playing field. Because at Qualcomm, our technologies are empowering people everywhere. 2 International Telecommunication Union, 2009 . m o c d n a r b r e k a b w w w . ™ s n o i t a c i n u m m o C d n a r B | r e k a B Qualcomm Headquarters 5775 Morehouse Drive San Diego, CA 92121 Phone: (858) 587-1121 Fax: (858) 658-2100 www.qualcomm.com Qualcomm Incorporated is a leader in developing and delivering innovative digital wireless communications products and services based on CDMA and other advanced technologies. Qualcomm serves the global wireless industry with breakthrough technologies that enable the convergence of mobile communications and consumer electronics, making next-generation wireless devices and services more personal, affordable and accessible to people everywhere. Qualcomm is included in the S&P 100 Index, the S&P 500 Index and is a 2009 FORTUNE 500® company. Nothing in these materials is an offer to sell any of the components or devices referenced herein. Certain components for use in the U.S. are available only through licensed suppliers. Some components are not available for use in the U.S. This corporate overview is printed entirely on FSC-certified recycled stock. Savings derived from choosing post- consumer recycled fiber in lieu of virgin fiber to make the paper: 227 pounds solid waste was not generated — the equivalent of saving 2,053 gallons of wastewater flow, or preserving 5 trees for the future. ©2010 Qualcomm Incorporated. All rights reserved. Various products and brand names may also be trademarks or registered trademarks that are the property of their respective owners. [2/10]