QUALCOMM Incorporated · NASDAQ:QCOM
QUALCOMM — Investor Day (November 2003)
78 slides from QUALCOMM's investor day presentation, Nov 12, 2003
Slide 1: London Investor Day
London Investor Day Bill Davidson Vice President Investor Relations 1
Slide 2: Safe Harbor and 2003 London Investor Day Agenda
London Investor Day November 12, 2003 Safe Harbor Before we proceed with our presentation, we would like to point out that the following discussion will contain forward-looking statements from industry consultants, QUALCOMM, and others regarding potential market size, market shares, and other factor
Slide 3: The 3G Standards
Dr. Irwin Jacobs Chairman and Chief Executive Officer London Investor Day November 12, 2003 The 3G Standards IMT-2000 Standard • 2 Mbps in fixed or in-building environments • 384 kbps in pedestrian or urban environments • 144 kbps in wide area mobile environments • Variable data rates in large geogr
Slide 4: 3G CDMA is Well Established & Growing
London Investor Day November 12, 2003 3G CDMA is Well Established & Growing With Lower Cost Voice and Increasing Data ARPU & Applications Now in Use in Two Flavors: CDMA2000® and WCDMA Over 62M Subscribers, 61 Operators, 39 Countries, 350 Handsets, 42 Vendors 39M Europe Asia Pacific 632,000 Sep’03 D
Slide 5: CDMA vs. Non-CDMA Handset Growth; CardioNet Cardiac Monitoring
London Investor Day November 12, 2003 CDMA vs. Non-CDMA Handset Growth (Millions) CDMA Includes cdmaOne, CDMA2000 1X, 1xEV-DO, 1xEV-DV, WCDMA Non-CDMA CAGR 2% 450 372 380 387 388 400 359 350 38 % 282 300 C AGR 250 CDMA 211 200 164 150 133e 107e 114 100 77 50 0 2003 2004 2005 2006 2007 CDMA EMC Forec
Slide 6: UCSD CyberShuttle - First Bus with 1xEV-DO Connection
London Investor Day November 12, 2003 UCSD CyberShuttle - First Bus to Offer 802.11b With CDMA2000® 1xEV-DO Internet Connection • Riders with a laptop or handheld computer equipped with WLAN connect to access point in the bus, which communicates with the Internet by 3G network • No extra payment req
Slide 7: CDMA2000 1xEV-DO Commercial Broadband Data Launches
London Investor Day November 12, 2003 CDMA2000 1xEV-DO Commercial Broadband Data Launches South Korea South Korea South Korea goal of 4 million CDMA2000 1xEV-DO subscribers in 2003 United States Brazil United States Planned Launches Trials KDDI (Japan) Nov. 28 UbiquiTel (Sprint affiliate) Pele-Phone
Slide 8: KDDI's CDMA1xWIN Launching November 28, 2003
London Investor Day November 12, 2003 KDDI’s “CDMA1xWIN” Launching November 28, 2003 • CDMA2000 1xEV-DO service, nationwide by Sept 2004 • Camcorder phone capable of recording up to two hours of video streams • EZ Flat, first ever flat rate packet communication service at $38 • “WIN”, a variety of m
Slide 9: CDMA2000 1xEV-DO Personal Media
London Investor Day November 12, 2003 CDMA2000 1xEV-DO Personal Media Multiple Channels of Content Distributed to Many Users Simultaneously • Use Multicast IP addresses to reduce traffic over the backbone • Efficient distribution method • Users may choose various content based on pricing plans Chann
Slide 10: CDMA2000 1xEV-DO Video Telephony
London Investor Day November 12, 2003 CDMA2000 1xEV-DO Video Telephony (VT) One-to-One and One-to-Many • SKT launch July 2003, KTF announced “Push to See” plan to launch 2004 • Packet (CDMA2000 1xEV-DO) based VT more efficient and flexible – Voice and video inherently variable rate – High throughput
Slide 11: Many Ways QUALCOMM Helps WCDMA Operators
London Investor Day November 12, 2003 Many Ways QUALCOMM Helps WCDMA Operators Network testing WCDMA chips & support Interoperability 14 customers to date testing Interacting with Sanyo VSA701 QUALCOMM test phone operators on feature sets Applications from CDMA transfer immediately to WCDMA London I
Slide 12: Chips To Support All Networks; CDMA2000 in 450MHz Spectrum
London Investor Day November 12, 2003 Chips To Support All Networks: Global Roaming With RadioOne™ Technology Multimode, Multiband, Multinetwork Chipsets All GSM/GPRS 2002 2003 2004 WCDMA/HSDPA CDMA2000® 1X CDMA2000® 1xEV-DO A-GPS cdmaOne CDMA2000 1X ARM9 gpsOne™ gpsOne 6275 6300 ARM9 6500 ARM9 CDMA
Slide 13: GSM Operators Have Choice With Islands of Coverage
London Investor Day November 12, 2003 Spectrum Use 1 Carrier in 5 MHz WCDMA 4 Carriers in 5 MHz 1X 1X 1X EV-DO CDMA2000 London Investor Day November 12, 2003 GSM Operators Have Choice With Islands of Coverage WCDMA – 3G spectrum GSM/GPRS/EDGE – 2G spectrum CDMA2000 1X/1xEV-DO – 1G, 2G, 3G spectrum G
Slide 14: QUALCOMM's Integrated Software for Building 3G
London Investor Day November 12, 2003 QUALCOMM’s Integrated Software for Building 3G Launchpad™ Suite of Application Support, All Accessible via BREWapi CMX™ - Compact Media Extensions™ Qcamera™, Qtunes™, Qcamcorder™, screensavers and animated ringers QVM™ - Real-time video, support for camera appli
Slide 15: BREW Applications Across Air-Interface Technologies; RAPTOR
London Investor Day November 12, 2003 BREW™ Applications Across Air-Interface Technologies! GPRS CDMA-IS95A CDMA2000 1X CDMA2000 1xEV-DO WCDMA Maxon 7830 Sharp Z-800 Motorola T-720 LG-KH5000 Sanyo London Investor Day November 12, 2003 RAPTOR New Paradigm in Network & Phone Performance Monitoring Lap
Slide 16: RAPTOR; "BREW is Real" for Developers
London Investor Day November 12, 2003 RAPTOR (Remotely Accessible Performance Tool and OptimizeR) • Consists of BREW applications & extensions, and server applications • BREW apps run in the background looking for and logging data around events like call drops, access failures, idle failures, etc. •
Slide 17: Thank You - Tony Thornley
Thank You Tony Thornley President and Chief Operating Officer 17
Slide 18: QUALCOMM's Mission and Solutions for Operators
London Investor Day November 12, 2003 QUALCOMM’s Mission New Areas Add Revenue Streams BREW™, QChat™, gpsOne™ Enterprise Applications Drive Replacement Cycles with New Products Consumer Electronics Model Expand CDMA Market 3G CDMA2000® 1X, CDMA2000® 1xEV-DO, WCDMA (UMTS), GSM1x (CDMA currently 13% o
Slide 19: QUALCOMM's Solutions for Device Manufacturers
London Investor Day November 12, 2003 QUALCOMM’s Solutions for Device Manufacturers New Areas Add Revenue Streams Expand addressable market with single software architecture Drive Replacement Cycles Rapid chip evolution with increasing capabilities at lower cost with easy upgrade Embedded software o
Slide 20: EMC GSM Subscribers; 3G CDMA Subscriber Forecast
London Investor Day November 12, 2003 EMC GSM Subscribers by Region Worldwide 935 Million as of October 2003 (Millions) 1,000 800 600 400 200 0 Dec'02 Mar'03 Jun'03 Sep'03 Oct'03 Africa Americas Asia Pacific East Europe West Europe Middle East USA/Canada Source: EMC November 10, 2003 London Investor
Slide 21: Operational Strategy and Key Priorities
London Investor Day November 12, 2003 Operational Strategy • Differentiate technology • Applications for rapid customer payback • Outstanding customer support • Leverage cross business expertise London Investor Day November 12, 2003 Key Operational Priorities • Enable low cost phones • Support launc
Slide 22: WCDMA (UMTS) - Incremental Growth Opportunity
London Investor Day November 12, 2003 WCDMA (UMTS) – Incremental Growth Opportunity Increases Chip Market and Royalties WCDM A Handse t Forecast 180 Yankee (7/03) 160 EMC (10/03) 156 Gartner (10/03) 140 Ovum (7/03) 120 Instat (3/03) (Million Units) IDC (9/03) 100 92 80 59 60 54 40 20 22 0 2001 2002
Slide 23: WCDMA Fully Segmented Market; Hutchison Whampoa 3
London Investor Day November 12, 2003 WCDMA Fully Segmented Market • Handset pricing high initially aimed at high-end • Number of devices increasing, prices going down • Full range of devices available • Capacity and data • Spectrum expensive in rural areas • CDMA-450 good complement for WCDMA Londo
Slide 24: Telefonica Moviles Espana Launches UMTS; CDMA-450
London Investor Day November 12, 2003 Telefonica Moviles Espana Launches The First Pre- Commercial UMTS Service in Spain • Telefonica Moviles will distribute 2,500 UMTS PCMCIA cards among its corporate customers in Spain, enabling them to access all UMTS 'Oficina MoviStar' data services at speeds of
Slide 25: CDMA 450 Devices and Infrastructure Vendors
London Investor Day November 12, 2003 CDMA 450 Just announced: Infrastructure Vendors Fully integrated radioOne™ Zero Intermediate Frequency • Lucent (USA) (ZIF) solution for • Nortel (Canada) CDMA2000 1X in the 450 MHz • Huawei (China) • ZTE (China) RFR6170 RFR6175 • Hyundai Syscomm (South Korea) L
Slide 26: CDMA 450 Terminals; Economics of CDMA
London Investor Day November 12, 2003 CDMA 450 Terminals London Investor Day November 12, 2003 Economics of CDMA • Content is rich and CDMA makes delivery economic • VOD creating new opportunities, great demand – South Korea surprised how popular broadcast TV is • CDMA2000 1xEV-DO, WCDMA (HSDPA) wil
Slide 27: Thank You - Dr. Paul Jacobs
Thank You Dr. Paul Jacobs Executive Vice President and President QUALCOMM Wireless & Internet Group 27
Slide 28: Evolution of Services; Data Drives Annual ARPUs
London Investor Day November 12, 2003 Evolution of Services Past • Mobility • Roaming Broadcasting Media • Increased capacity Future • Voice quality • Broadcast Media • Location-based Services • Network-based Gaming Present • PTT, multimedia • Ring tones • Photo messaging • Video-On-Demand • Broadba
Slide 29: KTF ARPU by Device Type; CDMA Devices vs 1998 PCs
London Investor Day November 12, 2003 KTF Monthly Voice and Data ARPU by Device Type Q2’03 $50.00 $40.00 $10.20 $30.00 $4.02 $6.14 Data $1.37 Voice $20.00 $0.91 $33.42 $28.24 $28.18 $10.00 $23.00 $19.26 $0.00 2G 1X B&W 1X Color FIMM 1X FIMM 1xEV-DO Source: KTF Q2’03 London Investor Day November 12,
Slide 30: Camera Phone Resolution; QUALCOMM Wireless and Internet Segment
London Investor Day November 12, 2003 2003 Camera Phone Resolution Exceeds 1999 Digital Cameras (Pixels) Resolution of New Models* First Half 2003: 5.00 M 20 Million shipped** 4.00 M Digital Cameras 3.00 M 2.00 M Camera Phones First Half 2003: 1.00 M QuickTake 25 Million 100 shipped**, estimate (App
Slide 31: QWBS End to End Wireless Services for Vertical Markets
London Investor Day November 12, 2003 QWBS End to End Wireless Services for Vertical Markets Transportation & Construction Logistics Equipment Europe Mexico, Enterprise (In-Cab, Trailers & (Assets & Service Brazil & Services Homeland Security Vehicles) Canada NOW Priorities Current FUTURE Markets Ne
Slide 32: QWBS Investing in Enterprise Market; Global Presence
London Investor Day November 12, 2003 QWBS Investing in the Enterprise Market FY03 Engineering Expenditures Approximately $70 Million Web Products Existing Product 18% Enhancement 34% Heavy 8% Equipment 40% Next Generation London Investor Day November 12, 2003 • 39 countries on 4 continents QWBS Glo
Slide 33: QWBS Growing Enterprise in Europe; BREW Growth
London Investor Day November 12, 2003 QWBS Growing Enterprise in Europe • Now largest provider of fleet management solutions across Europe – Assets acquired from Alcatel Mobicom – Integration of new European customers – QWBSE to serve nearly 300 customers, over 21,000 vehicles (with EutelTRACS) • Ma
Slide 34: Operators are in Control of Their Branding
London Investor Day November 12, 2003 Operators are in Control of Their Branding With BREW™, the Operator Acts as a Software Retailer – Choosing Products and Setting Prices International London Investor Day November 12, 2003 8 Out of Top 10 CDMA Operators Have Chosen BREW™ 27% of Total BREW CDMA Mar
Slide 35: Worldwide BREW Operators; BREW Helps Drive QTL Revenues
London Investor Day November 12, 2003 Worldwide BREW Operators November 2003 Pelephone Panama Colombia Launched commercial BREW services Announced intent to launch BREW services London Investor Day November 12, 2003 BREW™ Helps Drive QTL Revenues Drive ASPs Drive CDMA Data High-end handsets Over 55M
Slide 36: BREW Helps Drive New Phone Chip Features; LBS Growth
London Investor Day November 12, 2003 BREW Helps Drive New Phone Chip Features MSM6100 Demo App Program • Evangelize new functions to BREW publisher/developer community – Example: 3D graphics and video APIs in 6100 • Preview next generation QUALCOMM technology with partners • Obtain feedback to opti
Slide 37: KDDI EZ Navi Walk; 3G CDMA Horizontal Market Structure
London Investor Day November 12, 2003 KDDI EZ Navi Walk • Full-scale navigation service for pedestrians • Ability to locate the exact position of a mobile handset • Measures location of a mobile phone through GPS positioning enabling real time continuous display of their location Source: KDDI Octobe
Slide 38: Market Share Changes as Technology Evolves; Uniform BREW Implementations
London Investor Day November 12, 2003 Market Share Changes as Technology Evolves to CDMA (Market Share) 100% Sanyo Other Siemens Other 90% Samsung Samsung 80% Other 70% Nokia Other Nokia 60% Nokia 50% Motorola Nokia 40% 30% LG Motorola Motorola 20% Motorola 10% Kyocera Ericsson Ericsson Audiovox 0%
Slide 39: PTT Handset Forecast; What is BREWChat?
London Investor Day November 12, 2003 PTT Enabled Handset Sales Forecast (Millions) 88M ROW 53M Central Eastern Europe Latin America Asia Pacific 34M Western Europe 20M North America 13M 9M 2003 2004 2005 2006 2007 2008 Source: Strategy Analytics Global Enabling Technologies Forecast, June 2003 Lond
Slide 40: BREWChat & BREW Developers; CDMA2000 for the Enterprise
London Investor Day November 12, 2003 BREWChat & BREW™ Developers BREWChat can integrate with • Multi-player games • Instant messengers BREWChat Directory Instant Presence Data Services Messaging Services Application Application Application Application Application • Buddy lists • Video Chat • Locati
Slide 41: BREW Enterprise; The Platform Contenders
London Investor Day November 12, 2003 BREW™ Enterprise Mobile Calendar Mobile Directory Mobile Mail London Investor Day November 12, 2003 The Platform Contenders UIQ Source: Nomura 41
Slide 42: QUALCOMM's Platform Partners
London Investor Day November 12, 2003 QUALCOMM’s Platform Partners Thank You 42
Slide 43: Steve Altman; QUALCOMM's Unique CDMA Patent Position
Steve Altman Executive Vice President and President Tech Alliance London Investor Day November 12, 2003 QUALCOMM’s Unique CDMA Patent Position • Industry recognized patent portfolio essential for all 3G CDMA standards (including CDMA2000, WCDMA and TD-SCDMA) • More than 120 license agreements, inclu
Slide 44: Patent Position; How CDMA Licenses Generally Work
London Investor Day November 12, 2003 QUALCOMM’s Unique CDMA Patent Position Patent Portfolio is a Strong Asset Value Cumulative U.S. Patents* (Issued & Applied) (Excludes non-U.S. filed applications and issued patents) 3,500 3,017 3,000 2,887 2,655 2,762 2,451 2,500 2,000 1,500 1,035 1,098 888 936
Slide 45: How QUALCOMM's CDMA Licenses Generally Work
London Investor Day November 12, 2003 How QUALCOMM's CDMA Licenses Generally Work Licensee pays license fees • Amount of license fee depends on type and scope of license • License fees, among other things, confirm the commitment of the licensee to commercialize products • In certain cases, QUALCOMM
Slide 46: QTL License Fees and Royalty Revenues; Licensees Reporting
London Investor Day November 12, 2003 QTL License Fees and Royalty Revenues* (Millions) $1,000 $900 $800 $700 $600 $500 $400 $300 $200 $100 $0 FY1999 FY2000 FY2001 FY2002 FY2003 * Excludes intersegment amounts London Investor Day November 12, 2003 Number of Licensees Reporting CDMA (Including WCDMA)
Slide 47: Frequently Asked Questions
London Investor Day November 12, 2003 Frequently Asked Questions • Is each licensee’s subscriber unit royalty rate for WCDMA and TD- SCDMA the same as such licensee’s rate is for CDMA2000? • How can QUALCOMM maintain its royalty rate for WCDMA if, unlike CDMA2000, there are more companies that claim
Slide 48: Thank You - Dr. Sanjay Jha
Thank You Dr. Sanjay Jha Senior Vice President & President, QUALCOMM CDMA Technologies 48
Slide 49: Leadership Drives Our Performance; Chip Shipments
London Investor Day November 12, 2003 Leadership Drives Our Performance QCT Leadership Financial Performance Industry Recognition 9 Broadest product offering 9$2.4 Billion in 9 Largest fabless revenue semiconductor 9 Largest company in 3 of customer base the last 4 years 952% revenue 9 Unmatched gro
Slide 50: Focus on Customers; MSM Road Map
London Investor Day November 12, 2003 QCT CDMA Complete System Solutions Provider Focus on Customers Digital IC Support Analog RFIC Handset and Infrastructure Customers Tools Launchpad™ Applications Suite Software Protocol Stack London Investor Day November 12, 2003 MSM Road Map CDMA2000 CDMA2000 /
Slide 51: Launchpad Multimedia Road Map
London Investor Day November 12, 2003 Launchpad™ Multimedia Road Map 2003 2004 2005 Audio MP3 MPEG-4 AAC Video 15 fps QCIF 15 fps CIF 30 fps CIF Camera 1M pixel 2M pixel 4M pixel 50k triangles 100k triangles 400k triangles Graphics London Investor Day November 12, 2003 Wireless Launchpad™ • Most ful
Slide 52: Launchpad: Suite of Integrated Applications
London Investor Day November 12, 2003 Launchpad™: Suite of Integrated Applications • Common apps. for all modems Common Drives • Reduced dev. costs BREWapi Benefits Across for • Global dev. All OEMs community applicable for all platforms Modem and Products Carriers • Reuse of apps for faster time to
Slide 53: Successful in the Face of Competition; Path to Success in WCDMA
London Investor Day November 12, 2003 Successful in the Face of Competition Successful in the markets we have addressed We have experienced competition across our full product Line Baseband ASIC Intel, DSPC, TI, LSI, VLSI, PrairieComm, Motorola, VIA RF RFMD, Skyworks, Maxim … Power Man
Slide 54: Leadership in Wireless Systems Semiconductors
London Investor Day November 12, 2003 Leadership in Wireless Systems Semiconductors RFIC RF Design Modem Design Modem Design SWDesign SW Design Verification, Verification, Integration Integration Power, cost, integration, & Phone Design Chipset & Software time-to-market, quality, Graphics Design Gra
Slide 55: Enabling Mass Market Through Higher Integration
London Investor Day November 12, 2003 Increasing Silicon Area for Applications Support Applications Modem Silicon Area (normalized) 2002 2003 2004 MSM Die Area London Investor Day November 12, 2003 Enabling Mass Market Through Higher Integration Video ASIC Apps. Co- Processor Ringer 6250 Camera ASIC
Slide 56: Elements of a Commercially Successful Solution; WCDMA Traction
London Investor Day November 12, 2003 Elements of a Commercially Successful Solution Specification Testing Complete, Tested, Proven Integration Solution RFIC Modem SW Faster Time to Phone Design Chipset Market & GFX Software Greater Reliability VLSI Video Cost Effective uProc DSP London Investor Day
Slide 57: QUALCOMM Market Leadership
London Investor Day November 12, 2003 QUALCOMM Market Leadership 2003 rip-roaring success! Well positioned to continue CDMA2000 success WCDMA is happening: 2004 will be a pivotal year We look forward to enabling WCDMA and succeeding with our partners Thank You 58
Slide 58: Fiscal 2003 Financial Highlights
Bill Keitel Senior Vice President, and Chief Financial Officer London Investor Day November 12, 2003 Fiscal 2003 Financial Highlights • Record revenues – $3.8 Billion Excluding QSI – 32% YOY growth • Record net income – $1.2 Billion Excluding QSI – 46% YOY growth • Record EPS – $1.42 Excluding QSI –
Slide 59: CDMA Market Growth is Key Shareholder Value Driver; QCT
London Investor Day November 12, 2003 CDMA Market Growth is Key Shareholder Value Driver Core Segment Reporting (In Millions), Excluding QSI QCT QTL QWI Other Semiconductor Technology Wireless Intersegment Business Licensing Internet Elim/Other FY’03 Revenue $2,424 $1,000 $485 ($63) % of Total 63% 2
Slide 60: QUALCOMM Technology Licensing; CDMA Phone Selling Prices
London Investor Day November 12, 2003 QUALCOMM Technology Licensing License Fees and Royalties Highlights $1,000 Revenues • 2004 CDMA handset units $847 expected to grow 21-28% Revenues 8% +1 YOY $896 $756 9% EBT • WCDMA increasing share +1 EBT – 10% of royalties reported in September 2003 • Growth
Slide 61: QUALCOMM Wireless & Internet; Strategic Initiatives
London Investor Day November 12, 2003 QUALCOMM Wireless & Internet (QWI) QWBS (OmniTRACS™), BREW™, QChat™ $485 Highlights $439 Revenues • Leveraging strong Revenues 1% OmniTRACS core +1 competencies − GlobalTRACS − CardioNET − Europe expansion • Continue to win new BREW $27 operators EBT • Data appl
Slide 62: Balance Sheet; Free Cash Flow Perspective
London Investor Day November 12, 2003 Balance Sheet Increased Operating Cash and Improvements in QSI • Invested $158 million net stock repurchase to date • Paid $135 million in cash dividends FY’03 Sep 28, Sep 29, ($Billions) 2003 2002 Cash & Marketable Securities $5.4 $3.2 Fixed Assets & Goodwill $
Slide 63: Free Cash Flow Perspective; Fiscal 2003 Guidance and Results
London Investor Day November 12, 2003 Free Cash Flow Perspective Free Cash Flow / Reported Net Income Free Cash Flow / Revenue (Median of FY’02 & FY’03*) (Median of FY’02 & FY’03*) 250% 40% 35% 200% 30% 150% 25% 20% 100% 15% 10% 50% 5% 0% 0% QUALCOMM Semiconductor Wireless QUALCOMM Semiconductor Wir
Slide 64: Calendar 2003 Handset Shipments; Quarterly Results and Guidance
London Investor Day November 12, 2003 Calendar 2003 CDMA Handset Shipments - Guidance 103-108M est. 106-108M est. 18-24% growth YOY 22-24% growth YOY (Millions) 120 106M est. 107M est. 1.5 4 100 3.5 2 WCDMA ROW 10 10 ROW Latin America 80 45 North America 46 60 40 6 India 8 13 China 10 20 South Korea
Slide 65: Calendar 2004 Handset Shipments; Fiscal Year Guidance
London Investor Day November 12, 2003 Calendar 2004 CDMA Handset Shipments 131-136M est. (Millions) 106-108M est. t 133M 140 oin midpoint 107M dp Mi 6 WCDMA Europe midpoint 4% 9 120 +2 WCDMA ROW 1 4 ROW 3 10 Latin America 100 2 10 80 North America 46 Impact of unified 46 license and 60 number portab
Slide 66: Additional 2004 Modeling Metrics
London Investor Day November 12, 2003 Additional 2004 Modeling Metrics FY 2004 Guidance (Estimated) QCT/QTL revenue from worldwide >90% CDMA handsets sales CDMA phone replacement rate 33% CDMA phone ASP 8% decrease QTL segment earnings 89% - 90% as % of segment revenue QCT segment earnings ~26% as %
Slide 67: Global Development Objective: Proliferate CDMA
Jeff Jacobs President Global Development London Investor Day November 12, 2003 Global Development Objective: Proliferate CDMA Create Worldwide Distribution Channel for QUALCOMM Products and Services SE Asia International offices Business development North Japan America Technology marketing Program m
Slide 68: China Market Potential; China Unicom Expanding CDMA Market
London Investor Day November 12, 2003 China Market Potential Chinese 3G Growth Forecast* Total Population 1.3B (Within 5 years) GDP Real Growth Rate 8% 2002 Est. Total subscribers 495-665M 3G users (40%) 198-266M GDP per Capita Income Distribution (2003 est.) $15,000 $14,000 $13,000 $12,000 $11,000
Slide 69: China Unicom CDMA Handsets Segmented; India - Reliance
London Investor Day November 12, 2003 China Unicom CDMA Handsets Segmented High Tier Handset (Retail Price >$360) Motorola Motorola Samsung Samsung Samsung Samsung Samsung LG LG Toshiba Sanyo Sanyo Kyocera ZTE HiSense Haier CECT SCH- SCH- X590 SCH- SCH- V860 V868 X219 X309 (UIM) X339 X319 CU8180 CU6
Slide 70: India CDMA Market Seizes Growth Opportunity
London Investor Day November 12, 2003 India CDMA Market Seizes Growth Opportunity 5 Qtr Adds 8-10M Subs Total 4 3 Reliance goal 25M .8M CUM Subs CUM subscribers 2 2004* 1 0 Mar'03 Jun'03 Sep'03 Dec'03 est. 2002 2003 2004 Gov’t permits limited mobility Regulators debate mobility Full mobility Relianc
Slide 71: India Handsets Just Beginning Market Segmentation
London Investor Day November 12, 2003 India Handsets Just Beginning Market Segmentation Kyocera Kyocera Nokia Motorola Kyocera Kyocera LG DM Eurotel Motorola Nokia Phantom Bade 8280 C210 Rave 2235 160 CDMA 1X T720 3585 KX414 Samsung SCH 191 Samsung SCH LG LG Nokia 2280 A563 RD 2030 RD 7130 Source: w
Slide 72: Jumbo Surfing in Jaipur; Brazil Market Potential
London Investor Day November 12, 2003 Jumbo Surfing in Jaipur, India (November 2003) Mobile Web surfing via CDMA2000 1X data cards on Reliance network London Investor Day November 12, 2003 Brazil Market Potential Largest wireless market Total Population 182M in Latin America GDP Real Growth Rate 1%
Slide 73: CDMA Provides Competitive Advantage in Brazil; North America
London Investor Day November 12, 2003 CDMA Provides Competitive Advantage in Brazil Market Migrates Away From TDMA 40M Subscribers Market Share TDMA Vivo 14.0% TDMA Undecided CDMA 8.0% 30.4% Undecided TDMA Operators ~3M Telemig Celular Amazonia Celular CTBC Celular GSM TDMA 10.8% 35.0% AMPS 1.9% Sou
Slide 74: CDMA Growing Average Minutes of Use; North America Growing CDMA
London Investor Day November 12, 2003 CDMA Growing Average Minutes of Use (MOU) 700 600 500 400 300 Postpaid 200 Blended Prepaid 100 0 Worldwide North America CDMA North America GSM Source: EMC as of September 2003; MOU represents blended rate, postpaid=251, prepaid=106, North America top two CDMA a
Slide 75: Cellular Customers Likely to Switch Providers
London Investor Day November 12, 2003 Cellular Customers “Very Likely” or “Extremely Likely” to Switch Providers Within 3 Months Verizon Wireless 3.9% Sprint PCS 5.5% T-Mobile 6.4% Nextel 6.5% AT&T Wireless 9.2% Cingular 9.4% 0 0.02 0.04 0.06 0.08 0.1 Source: In-Stat/MDR’s wireless panel, October 20
Slide 76: Building CDMA Market Share in Japan
London Investor Day November 12, 2003 Building CDMA Market Share in Japan Subscribers (Millions) by Operator Market Share as of September 2003 46.2 81M Subscribers as of September 2003 Current CDMA 20% 15.3 14.6 10.2 3G 3.7 0.1 1 KDDI Vodafone DoCoMo CDMA Non-CDMA CDMA Potential 80% Source: EMC Nove
Slide 77: South Korea CDMA Status and Market
London Investor Day November 12, 2003 South Korea CDMA Status 33M CDMA Subscribers Subscribers by Operators 8% 14% 32% 60% 32% 54% CDMA2000 1X 2G CDMA2000 1xEV-DO SKT KTF LG Source: MIC, Operators (August 2003) London Investor Day November 12, 2003 South Korea CDMA Market 2003 2004 All handsets sold
Slide 78: 3G CDMA Regional Growth Headlines in 2004 and Beyond
London Investor Day November 12, 2003 3G CDMA Regional Growth Headlines in 2004 and Beyond WCDMA (UMTS) 2nd year 3G Chinese CDMA2000® 1xEV-DO commercial growth in India government expansion and high 3G launches and Impact of authorizes data ARPUs continue in subscriber growth Unified License 2.1 GHz