Lehman Brothers Worldwide Wireless & Wireline Conference. May 28, 2008

Transcription

1 Lehman Brothers Worldwide Wireless & Wireline Conference

2 Sanjay Jha Chief Operating Officer and President, Qualcomm CDMA Technologies Group

3 Safe Harbor Lehman Brothers Worldwide 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 and product availability, 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. 3

4 Lehman Brothers Worldwide Over 3 Billion Cellular Subscribers including more than 625 Million 3G Subscribers 3G Forecasted to Grow to 1.6 Billion 3G Subscribers by 2012 Source: Wireless Intelligence 4

5 Lehman Brothers Worldwide Significant Opportunities Ahead for 3G CDMA 3G CDMA Global Handset Shipments are Forecast to Reach >55% of Total Handset Shipments by 2012 (Millions) G* 3G Strong Growth for Traditional Wireless Market Ongoing Transition From 2G to 3G CDMA New Opportunities Beyond Traditional Wireless Handsets G* includes cdmaone, TDMA, GSM, EDGE,GPRS, iden, PDC, PHS Source: Average of Strategy Analytics (Jan 2008), Instat (Jul 2007), IDC (Jan 2008), Gartner (July 2007), Forward Concepts (Jul 2007), ABI (Dec 2007), Yankee Group (Dec 2007), WCIS+ (Feb 2008) and IMS (Oct 2007) 5

6 Lehman Brothers Worldwide Regional Trends Asia Pacific and Emerging Markets Forecast to Lead in Growth (In millions) 1600 Global Annual Handset Sales ,105 1,205 1,291 1,356 1,411 1, North America Latin America Asia Pacific Europe Africa/Middle East Source: Informa Telecoms & Media, October

7 CDMA Subscribers by Technology EVDO Rev. A/B subs to reach 152M by 2012, CAGR of 174% Lehman Brothers Worldwide DO Rev A/B DO Rev 0 1X CDMA Subscriber Forecast, Millions % of Subs commercial 1X networks today, including 99 EV-DO & 33 EV-DO Rev A 40+ new CDMA2000 networks launched in the last 24 months; primarily in developing regions- the Middle East, Africa, Asia-Pacific, Russia, Latin America Sources: Subscribers: Strategy Analytics; Networks: CDG; 7

8 Lehman Brothers Worldwide UMTS Device Forecast: Predicted to grow to nearly 800 million by HSUPA Annual Handset Sales HSDPA WCDMA (R99) HSPA: 680 million devices projected to sell in Source: Strategy Analytics, January

9 Strong Demand for Data will Continue Lehman Brothers Worldwide 1.4B New Wireless Services Data Revenues 1.0B 1H '06/ % 1H '07/08 Broadcast Digital Wallet Data Revenues $1.5B + 57% $2.3B Mobile Healthcare GPS Mobile TV User Generated Content/ Social Networking Q107 Q108 New Entrants to Wireless $2.3B Data Revenues $1.6B + 49% Q1 '07 Q1 '08 Source: Verizon, Vodafone Group, AT&T All trademarks are property of their respective owners. 9

10 Lehman Brothers Worldwide HSPA s Accelerated Adoption Networks Networks upgraded to HSPA in 1/3 the time 2G 3G (WCDMA) HSPA 3 years earlier Load from data traffic exceeds voice traffic by 5x or more within months of introduction of flat rate data plans 3G mobile broadband experience starting to become comparable to wired internet 0 Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q9 Q10 Q11 Q12 Q13 Q14 Q15 Q16 Q17 Q18 Q19 Q20 Q21 Q22 Q23 Q24 Q25 Q26 Q27 Q28 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Source: Wireless Intelligence 10

11 HSPA+ Will Drive Mobile Broadband Lehman Brothers Worldwide Backwards compatible to existing networks for seamless migration on same spectrum and network Latest generation of advanced receivers Enhanced always connected user experience with lower latency MDM 8200 HSPA+ Data Optimized MSM 8260 HSPA+ QSC 7230 HSPA+ Enhanced Broadband Internet Experience 28 Mbps Peak Data Rates 2x Data Capacity Increase 3x voice capacity increase QSC 6295 HSPA+ Handset Optimized Enhanced Real Time Services VoIP, PTT, IM, Gaming 1 Rel 7 specifies performance of receivers using Rx Div and Equalizers and also receivers that reject other cell interference 11

12 Wireless Technology Evolution Path Broadband downloads Broadband uploads, QoS 2x data and up to 3x voice capacity Lehman Brothers Worldwide Enhanced capacity and data rates Rel-99 Rel-5 (HSDPA) Rel-6 (HSUPA) Rel-7 Rel-8 Rel-9 & Beyond WCDMA HSPA HSPA+ (HSPA Evolved) DL: 384 Kbps UL: 384 Kbps DL: Mbps UL: 384 Kbps DL: Mbps UL: 5.7 Mbps DL: 28 Mbps UL: 11 Mbps DL: 42 Mbps 1 UL: 11 Mbps DL: 84 Mbps 2 UL: 23 Mbps 2 Complements 3G Leverages wider bandwidth 1 R8 will reach 42 Mbps by combining 2x2 MIMO and HOM (64QAM) in 5MHz, or by utilizing HOM (64QAM) and multi carrier in 10 MHz. 2 R9 and beyond may utilize combinations of multi carrier and MIMO to reach 84 Mbps peak rates. Similarly, uplink multi carrier can double the uplink data rates. 3 Peak rates for 10 and 20 MHz FDD using 2x2 MIMO, the standard supports 4x4 MIMO enabling peak rates of 278 Mbps. TDD rates are a function of up/downlink asymmetry Rel-8 LTE DL: Mbps 3 UL: Mbps 3 Rel

13 Lehman Brothers Worldwide Wireless Technology Evolution Path, (cont) Broadband downloads Broadband uploads Low Latency, QoS, VoIP Multi carrier Tripled data rates across cell Enhanced capacity and data rates EV-DO Rel. 0 EV-DO Rev. A Rev. B Phase I EV-DO Rev. B Phase II DO Advanced DL: 2.4 Mbps UL: 153 kbps DL: 3.1 Mbps UL: 1.8 Mbps DL: 9.3 Mbps 1 UL: 5.4 Mbps DL: 14.7 Mbps 2 UL: 5.4 Mbps DL: Mbps UL: Mbps CDMA2000 1X 1x Advanced Calls/Sector 2008 More than doubles today s voice capacity Peak rate for 3 EV-DO carriers supported by initial implementation. Standard supports up to 15 aggregated Rev. A carriers. 2Peak rate for 3 EV-DO carriers with 64QAM in the DL. Standard supports up to 15 aggregated Rev. A carriers. 3DO Advanced peak rate for 4 EV-DO carriers as expected for initial implementation, assumes 2x2 MIMO and 64QAM in the DL and 16 QAM in the UL. 4Capacity increase to 55 calls per 1.25 MHz possible with new codec (EVRC-B) and handset interference cancellation (QLIC). Note: Estimated commercial dates 13

14 New Qualcomm Solutions to Enable the Wireless Evolution Lehman Brothers Worldwide HSPA+ to Mass-market Feature Phones Bringing multimedia and broadband capabilities to the mass-market tier Support for downloads of up to 10.2 Mbps, uploads of up to 5.76 Mbps Powers the Next Evolution of Mobile Consumer Devices Integrated WWAN connectivity, GPS. Broadcast TV and rich multimedia Powers next generation PNDs, PMPs, and Entertainment Devices Industry s First Multi-mode LTE Chipsets Enables UMTS and CDMA2000 operators to upgrade seamlessly to future LTE services Delivers backward compatibility to existing UMTS and CDMA2000 networks 14

15 Convergence of Devices & Services Lehman Brothers Worldwide 1G 2G 3G & Beyond Mobile Communication Information Entertainment / CE Rich Communication PHONE EVOLUTION User Generated Content/ Social Networking Computing Connected Devices Bluetooth Headsets Multi-Function CE Mobile Computing CONVERGENCE OF DEVICES & SERVICES Connected Applications Rich Content Computing Applications High-Speed Access PC EVOLUTION Computing Simple Communication Information Entertainment Rich Communication User Generated Content/ Social Networking 15

16 Creating New Mobile Device Categories Lehman Brothers Worldwide *Navigation By InfoGation, Best of CES 2008 Pocketable Computing Devices (PCD) Pocket-size rich multimedia and internet browsing devices with 4-6 touch display that can connect to a docking station Mobile Computing Devices (MCD) High-performance, ultra low power 7-12 display mobile computing device with embedded OS WM/Linux Connected Personal Navigation Devices GPS navigation and real-time location aware content, search, etc 16

17 Lehman Brothers Worldwide Enhancing CE Devices with Integrated WWAN Connectivity, GPS & Rich Multimedia GPS Standalone, A-GPS gpsonextra Assistance Broadcast Media-FLO, DVB-H, ISBD-T Multimedia Video, Audio, Camera, Graphics Connectivity WWAN, WiFi, Bluetooth, USB 2.0 *Navigation By InfoGation, Best of CES 2008 Applications Processor Mio s next-gen connected PNDs based on QST

18 Lehman Brothers Worldwide Enabling Pocketable Computing GHz Core 600 MHz DSP GPS Graphics WWAN HD Video Decode Multimedia LCD Controller Snapdragon QSD Over 15 pocketable & mobile computing devices in development Commercial devices anticipated in 2H

19 Mobile Broadband Device Momentum Lehman Brothers Worldwide Laptop Cellular Wireless Modem Shipments Laptop Cellular Wireless Modem Shipments by Device Type Embedded 3G market is building Millions USB Modems Internal Modems PCMCIA Cards 53% CAGR 68M M Source: ABI Research, March 08 March 2008 March 2007 Launched NB Models Notebook OEMs 3G Embedded Operators

20 Lehman Brothers Worldwide Leader in Execution and Innovation Providing Competitive Advantage to Our Customers Delivering leading technologies and time-to-market Enabling new devices and new markets Expanding Market Opportunities Increasing wireless connectivity and access Seeing beyond the horizon with products outside traditional markets Snapdragon, Gobi, etc. Record Results Eleven consecutive record-setting quarters for shipments Eight consecutive record-setting quarters for revenue 20

21 Thank you.