Dr. Sanjay Jha. COO, Qualcomm President, Qualcomm CDMA Technologies. Lehman Brothers Global Technology Conference December 6, 2007

Transcription

1 Dr. Sanjay Jha COO, Qualcomm President, Qualcomm CDMA Technologies Lehman Brothers Global Technology Conference

2 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 industry trends, anticipated future results, potential market size, market shares, and other factors which inherently involve risks and uncertainties, including the rate of development, deployment and commercial acceptance of CDMA-based networks and technology and fluctuations in the demand for CDMA-based products, services or applications. These and other risks and uncertainties relating to Qualcomm s business are outlined in detail in our most recent 10-Q and 10-K forms filed with the Securities and Exchange Commission. Please consult those documents for a more complete understanding of these risks and uncertainties. This presentation includes a discussion of "non-gaap financial measures" as that term is defined in Regulation G. The most directly comparable GAAP financial measures and information reconciling these non-gaap financial measures to the company's financial results prepared in accordance with GAAP have been included at the end of this presentation. 2

3 Anticipate Create Collaborate Drive wireless data Lead in technology Enable partners Anticipate needs Extend capabilities Commit and execute Grow 3G Open markets Maintain Handset ASPs 3

4 Current Market Technology Shifting: 3G Handsets Forecast to Reach >57% of Worldwide Shipments by 2011 Lehman Brothers Global Technology Conference, 800 Millions Units 600 GSM 3G CDMA/WCDMA GSM Shipments Forecast to Decline After Source: Average of Strategy Analytics (July 2007), ABI (Q1 2007), WCIS (Apr 2007) 4

5 Convergence of Computing, Communication & Consumer Electronics Platforms PHONE 1G 2G 3G & Beyond Mobile Communication Information Entertainment/ CE Rich Communication User Generated Content/Social Networking Computing Convergence of Services Mobility Access Personalization Seamless User Experience Mobile Internet Mobile Entertainment Mobile Broadband PC Computing Simple Communication Information Entertainment Rich Communication User Generated Content/ Social Networking 5

6 Investments in Longer Term Initiatives, Revenues to Follow in Subsequent Years 100% Pro Forma R&D Expense FY08 Longer Term Initiatives OFDMA Investments MEMS Display Technology Snapdragon and LAN 27% 30% 41% Services Platforms 0% FY06 FY07 FY08e Pre-Revenue Projects 6

7 Qualcomm: OFDM/A Leadership to Complement 3G Flash OFDM Development: 1999 Commercial: 2005 UMB Development: 2002 Commercial: 2009 LTE Leveraging Prior OFDMA Expertise Commercial: Media FLO Development: 2003 Commercial: 2007 Platinum Multicast Standard: 2005 MIMO (802.11n) Development: 1998 Long Term Evolution 7

8 New Markets: Machine-to-Machine: Location Based Services Cargo Security Device Management People & Pets Military Market Enabling Technology: ingeo Dedicated Location Device Prototype Recharge device in approx. 1 month Fast and accurate location reporting Efficient power consumption Cost optimized Small form factor Optimized tracking features Seamless integration 8

9 * ingeo: Best Location Performance, Longest Battery Life, Smallest Form Factor, Lowest Cost * ingeo departed CA on 11/5 and arrived at St. Regis on 11/11 * 72% battery remaining after reporting every 30 minutes for 6 days! Lehman Brothers Global Technology Conference, 9

10 Qualcomm s Success in Wireless Semiconductor Market Wireless Modem Leadership First to market Active Participation in Standards Interoperability Tests High Performance & Low Power Processor Leadership High Performance/Low Power 1GHz/2.1DMIPs 600MHz DSP Integration Leadership Process technology migration: 90nm/65nm/45nm Integrated Stacked Memory and Package on Package RF Multi-Chip Modules and Single Chip Phones End to End Test GPS EVDO Rev BA HSPA+ MediaFLO UBM n BT 2.0 Hardware Accelerators Scorpion 1GHz Processor 600MHz DSP 10

11 Record Demand for Qualcomm Chipsets Record shipments for nine consecutive quarters Record revenues for six consecutive quarters Shipped cumulative one billionth baseband chipset Shipped several new products for first time commercial deliveries CDMA QSC60x0, 7500, 6800A UMTS 6245, 6260, 7200 Launching 30+ new Qualcomm enabled devices per month on average Focused on Execution and Innovation 11

12 Innovative Leader in Low Cost Chips for 3G Devices CDMA2000 UMTS Winner of 2007 GSMA 3G for All Low Cost Phone Coolpad 267 Multimedia MPEG4 decode 1.3 MP camera Huawei 2601 Retail price: $ QSC Designs 22M units shipped Winning Industry Acclaim Currently offered by: T-Mobile H3G Globe Smart M1 Orange And More! LG KU250 Qualcomm Low Cost Solutions Driving Migration of 2G to 3G 12

13 Qualcomm Dual-Core Processor Chipsets Powering Market s Most Advanced Smartphones and Feature Phones More than 30 commercial devices available More than 75 devices in development 7500 DOrA Multimode Enabling Open Application Platforms on Qualcomm s 7xxx Chipsets 13

14 HSDPA Early Market Leadership Enabled by Qualcomm s First Mover Advantage Laptop Cellular Wireless Modem Shipments by Device Type Laptop Cellular Wireless Modem Shipments by Device Type USB Modems Internal Modems PCMCIA Cards 68M Delivering Global Mobile Internet - Today Millions % CAGR Growth in Data Cards Paves the Way for Widespread HSDPA Adoption M Source: ABI Research, March 07 Huawei E220 Sierra Wireless AirCard 881U Option GlobeSurfer icon Novatel Wireless Ovation MC950 14

15 Converting Innovation to Market Leadership for In-Demand Products Time-to-Market Advantage Enables Our Customers to Win 450 Commercial Handsets Shipping with Qualcomm Chipsets Global Handset Sales (Units Million) WEDGE 6250 WEDGE 6275 HSDPA 6245 WEDGE Qualcomm Launches Third Generation HSDPA Solutions Before Competition Launches First 6280 HSDPA HSDPA 7225 MDM 8200 HSPA HSDPA WCDMA HSDPA HSPA Time Source: Strategy Analytics, 2007 Competition Launches First HSDPA Products 15

16 HSPA+ Gaining Momentum in the Industry Max Data Throughput (Mbps) MBMS Industry-First Commercial ASICs Engineering Sample Dates 6250 WCDMA 6275 HSPA R HSPA R5 Nov 03 Dec 04 Sep HSPA R6 Mar 06 MDM8200 HSPA+ R7 QSC7x30 EV-DOrA Q4 07 Q4 08 New Qualcomm will enable HSPA+ deployments in late 2008 Rel-99 WCDMA 137 M Subs, 184 Networks Launched* Higher data rates and capacity Enhanced user experience Low cost upgrade Rel-5 HSDPA Rel Networks Launched* 19 Networks Launched* Rel-7 HSPA+ Network Launches in 2009 Rel-8 HSPA+, EPS/LTE Standards Completion (Conformance Test Spec Frozen) Standards-Compliant Commercial Terminal Launch * Source: GSA June

17 Recently Announced: Single-Chip Solutions for Mass-Market Smartphones QSC 7230 HSPA+ QSC 7830 EV-DOrB Unprecedented Levels of Integration 600 MHz ARM11 applications processor Windows Mobile, Linux, and BREW 45nm CMOS process technology 2D and 3D hardware-accelerated graphics Fully integrated GPS, FM radio, and Bluetooth Integrated support for worldwide cellular frequency bands QSC 7630 EV-DOrB HSPA+ Unparalled Battery Life 80+ hours of music playback 1 day talk time 1 month standby time 17

18 Segmented Roadmap: Building on Today s Leadership Commercial Today Dual-Core Solutions Supporting 3 rd Party OS Commercial in 2008 Dual-Core Solutions Supporting 3 rd Party OS QSC 7x00 DOrA 7x25 DOrA QSD 8650 DOrA 7600 DOrA Powers Majority of World s 3G Devices Powers Majority of World s 3G Devices 6550 DO 6800 DOrA 6260 HSDPA DOrA 6290 QSC 7x30 QSC 6085 DOrA 1x & UMTS QSC 1x & UMTS QSC QSC 60x0 1x QSC x 6245 WCDMA Features QSC 62x0 HSDPA QSC 6075 DO 6246 HSDPA Source: ABI Research, Oct-07 18

19 Beyond Traditional Wireless Handsets Expanding into Computing and Consumer Market Segments GHz CPU Northbridge GPS WWAN HD Video Decode 600 MHz DSP Southbridge Graphics Multimedia LCD Controller Snapdragon QSD8250 HSPA Snapdragon QSD8650 Multi-mode HSPA and CDMA2000 1xEV-DO Rev B Multiple designs with several customers in progress Commercial devices in 2H 2008 Custom microprocessor core 6 th generation DSP core running at 600 MHz Broadcast multimedia World s First Integrated Low Power Chipset with 3G and Enables GHz Performance 19

20 Leadership in OFDMA Solutions Products in development MDM 8900 UMB CSM 8900 UMB Common Modem Architecture for UMB, LTE Unique Multimode capability covering CDMA2000 and UMTS Qualcomm advantage based on innovations from MediaFLO, Flarion, and Airgo Scale and Time-to-market Early commercialization and availability of UMB in 2009 LTE-ready CSM and MDM platform Femtocell Macrocell 20

21 Qualcomm is Driving Semiconductor Technology Advancements and Supply Partnerships Process Technology Segmentation % of Total Digital Wafers 100% 80% 60% 40% 20% 0% Successfully ramped multiple 90nm and 65nm products at multiple suppliers.25um.18um.13um 90nm 65nm 45nm Completed 45nm Tapeout with Volume Ramp Planned for

22 Results of Execution: Qualcomm s Position in the Semiconductor Industry Overall Top 10 Semiconductor Companies 1Q07 Rank 2Q07 Rank Company 1 1 Intel 2 2 Samsung Electronics 4 3 Texas Instruments 3 4 Toshiba 6 5 STMicroelectronics 8 6 Renesas Technology 5 7 Hynix 9 8 NXP Top Wireless Chip Supplier for Q207 1Q07 Rank 2Q07 Rank Company Source: isuppli 1 1 Qualcomm 2 2 Texas Instruments 3 3 NXP 4 4 Freescale Semiconductor 5 5 STMicroelectronics 14 9 Qualcomm Infineon Technologies Source: isuppli Corp. August

23 Thank you.