Powering%20the%20Mobile%20Computer:%20CDMA%20and%20the%203G%20wireless%20revolution

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Powering the Mobile Computer CDMA and the 3G
wireless revolution

• Klein S. Gilhousen
• Senior Vice President
• QUALCOMM

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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 factors which inherently involve risks
and uncertainties. These and other risks and
uncertainties relating to QUALCOMMs 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 may include 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 posted
on the company's Investor Relations web site at
http//www.qualcomm.com/IR/
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We have always been in the semiconductor business

• Our first hardware deliverable product was a full
  custom Viterbi algorithm decoder chip 1987
• We have always recognized that the key to
  feasibility of CDMA was VERY aggressive custom
  chip design
• First chip sets required three devices for a
  mobile phone 1991
• Second go around compressed the original 3 chip
  design into a single chip enabling a fully
  functional dual mode AMPS/CDMA phone 1992
• Third generation enabled the first commercial
  dual mode AMPS/CDMA phone the QCP-800 - 1995
• Now focused on chip business leaving phone and
  base station products to others

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First Generation CDMA PHone
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First Commercial CDMA Phone QCP800
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CDMA Market Growth is Key Shareholder Value
Driver Results Excluding QSI
QCT
QTL
QWI
Other
Q3 FY04 YTD (9 months) (Millions)
Semiconductor Business
Wireless Internet
Intersegment Elim/Other
Technology Licensing
Revenues
2,250 60 773 34
433 11 14 3
(100) (3) 33 n/a
1,180 31 1,084 92
Revenues as of Total
EBT
Earnings as a of Revenues
Cash Marketable Securities 7 Billion as of
June 2004
July 13, 2004 announced Two for one stock split
effective August 13, 2004 40 increase in
quarterly dividend payable on September 24, 2004
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QCT Revenue Growth1996 - 2003
63

• 1.6B in FY 2002 54 of total QUALCOMM Revenue
• 2.4 B in FY 2003 63 of total QUALCOMM revenue

54
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QCT Revenue as of Total QUALCOMM Revenue
FY '96
FY '97
FY '98
FY '99
FY '00
FY '01
FY '02
FY '03
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Top 10 Fabless Companies Worldwide Company
Revenues by Calendar Year 03 by Q4 03
Semiconductor Revenue Drives our Business
QUALCOMM
NVIDIA
Broadcom
ATI
Xilinx
MediaTek
SanDisk
Altera
Marvell Tech.
Conexant
Technologies
Source FSA, On the Fabless Front 2004, Business
Wire
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Cumulative ASICS Shipments
Over 1.4 Billion ASICs Shipped to Date
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TAM more than triples in 5 years
29 CAGR
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The Competitive Landscape May Change..As the
market for non-CDMA based standards shrinks
Wireless IC Revenue by Standard
38 CAGR
Source IDC, 2004
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A Dynamic Wireless Economy
Growth Vectors Market opportunities Wireless Economy
Increasing Tele-density Extending Voice Services into emerging markets Move to greater segmentation multi-tier enables dynamic growth in wireless Drive to data Key to increase in ARPU 1x EV-DO, WCDMA/HSDPA, EV-DV Integrated Multimedia Market can only be fully exploited by reducing costs and TTM Multi-mode All future devices are multi-modeglobal communication Increasing demand for content and applications continue to be critical for wireless growth
Migrating Voice to Data 3G Network Deployments around the globe DO, WCDMA, DV Move to greater segmentation multi-tier enables dynamic growth in wireless Drive to data Key to increase in ARPU 1x EV-DO, WCDMA/HSDPA, EV-DV Integrated Multimedia Market can only be fully exploited by reducing costs and TTM Multi-mode All future devices are multi-modeglobal communication Increasing demand for content and applications continue to be critical for wireless growth
Converging Multimedia Wireless Mobility Combining mobility with location, audio, camera, video gaming Move to greater segmentation multi-tier enables dynamic growth in wireless Drive to data Key to increase in ARPU 1x EV-DO, WCDMA/HSDPA, EV-DV Integrated Multimedia Market can only be fully exploited by reducing costs and TTM Multi-mode All future devices are multi-modeglobal communication Increasing demand for content and applications continue to be critical for wireless growth
2008 1.8 billion voice users
2007 1 billion data users
2006 gt600 million MM users
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Leveraging our Experience and Competitive Position
The largest, most experienced team focused on
CDMA Leadership in wireless systems Our unique
model brings us closest to operators and OEM
partners Most complete and proven solutions in
the industry Cost structure enables our partners
to compete in every segment Long-standing working
relationships with operators and customers
Engineering
Systems Approach
Business Model
Market Tested
Segmented Products
Relationships
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QCT PositioningOur Value to the Industry
Originates with Our Complete Solution
Digital IC
Support
Analog RFIC
Handset and Infrastructure Customers
Tools
Launchpad Applications Suite
Software Protocol Stack
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Product Platform Overview
PLATFORM POSITIONING
PLATFORMS

• Wireless Technology Merge w/ Consumer Electronics

• New form factors to address enterprise and
  consumer requirements
• Multimedia content creation

• Devices Optimized for Multimedia Applications

• Productizes enhanced 3G features and applications
  for new network services

• Feature-Rich, Data Enabled Devices

• Integrated multimedia capabilities reduce cost
  for conventionally higher-end applications

• Low-Cost Entry Devices

• Provides carriers with cost competitive
  capabilities to enable a broader base of devices
  for CDMA2000 WCDMA

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Our Product Platforms Developed Through
Interaction With Operators
QCT DIRECTION
CUSTOMER REQUIREMENTS

• Global product roadmap
• Stability
• Seamless 3G / 2G
• handovers
• Choice variety
• Fast time to market
• Cost effective
• 3G rollout experience must be equal to or better
  than 2G!

• QCT Complete Solutions Strategy

Fully tested, optimizedsolutions
Operator-Focused Planning
Tiered platforms utilize common apps SW
Fully Segmented, Global product roadmap
Broad feature sets
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Cost Leadership
We will be ahead of the industry in innovating
cost-competitive solutions and delivering them on
schedule!
CMOS

• The industrys first CDMA2000 chipsets to use RF
  CMOS
• Ensures price-competitive entry-tier solutions
  for emerging markets

90nm
Reducing costs for datadevices to
driveMainstream Acceptance

• Greater processing speed
• Lower power gt lower cost / longer standby time
  for improved user experience
• Easy migration for OEMs design re-use advantages
• Providing OEMs with low-cost path to smaller
  footprint

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WCDMA Market Opportunity - Volume

• US
• UMTS1900 and UMTS850
• EDGE
• Japan
• UMTS2100 and UMTS800
• i-mode (Access browser)
• Europe
• UMTS2100
• China
• UMTS2100
• EDGE and UMTS1800 becoming likely
• ROW
• Predominately SE Asia
• UMTS2100 with UMTS1800 likely

Millions of Handsets
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Ramping Customer Acceptance
WCDMA Customers - Cumulative (Calendar Quarters)
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22
20
18
16
14
12
10
8
6
4
2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
2003
2002
2004
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QCT Product Platforms
COMMON CORE FEATURES
PLATFORMS
SAMPLING

• Dual CPU
• 6.0 megapixel digital camera
• 30 fps digital video record playback
• 4M triangles/sec. 3D graphics acceleration
• High-fidelity digital stereo audio
  record/playback

05 -06

• 30 fps CIF Video Playback Streaming
• 4 megapixel digital camera
• AAC encoding
• 400k triangles/sec. graphics acceleration
• Integrated QCamera, CMX, Qtv, Qcamcoder gpsOne

04 -05

• 15 fps QCIF Video Playback Streaming
• 2 megapixel digital camera
• AAC, aacPlus decoding
• 100k triangles/sec. graphics accelaration
• Integrated Qcamera, CMX, Qtv, Qcamcoder gpsOne

03 -04
120 Designs

• Sub-QCIF
• Voice-centric
• Limited Launchpad support

02 -03
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QCT Chipset Roadmap Overview
MULTIMODE All GSM/GPRS Capable MULTIMODE All GSM/GPRS Capable MULTIMODE All GSM/GPRS Capable MULTIMODE All GSM/GPRS Capable MULTIMODE All GSM/GPRS Capable MULTIMODE All GSM/GPRS Capable MULTIMODE All GSM/GPRS Capable
CDMA2000 CDMA2000 GSM-GPRS CDMA2000 GSM-GPRS CDMA2000 GSM-GPRS CDMA2000 GSM-GPRS CDMA2000 GSM-GPRS WCDMA (UMTS) WCDMA (UMTS)
1X 1X 1xEV-DO(Rev. 0) 1xEV-DV (Rev. D) 1xEV-DO(Rev.A) UMTS/ EDGE/HSDPA GSM/GPRS EDGE/HSDPA
CONVERGENCE PLATFORM Dual CPU On-Chip
ENHANCED PLATFORM Enhanced Multimedia Graphics
MULTIMEDIA PLATFORM Multimedia 2D-3D Graphics
VALUE PLATFORM Integrated gpsOne Voice Data Voice
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There are many ways to support Applications/Servic
es for handsets
Non-Integrated Solution
Highly Integrated QCT Solution
Camera Sensor
Video ASIC
Apps. Co-Processor
Camera Module with DSP
Ringer ASIC
Camera Module with DSP
Video ASIC
Camera Sensor
3D Gaming ASIC
Apps Co-Processor
Ringer Chip
Processor

• Smaller Form Factor
• Lower Overall Costs
• Faster Time to Market

3D Gaming ASIC
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What is in a QUALCOMM Chipset?

• A Leader in delivering Wireless Solutions
• Always striving to achieve Semiconductor
  Excellence

• Smaller Form Factor
• Enhanced System Performance
• Highly Integrated Applications
• Greater Quality Reliability
• Reduced Power Consumption
• Lower Overall Costs
• Faster Time to Market

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Commercially Ready Solutions Enable Mass Market
Devices
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QCamera Overview

• Complete Digital Still Camera Application for the
  MSM
• 1.3M to 4M Pixel support depending on MSM
• Example User Interface
• Picture Viewfinder up to 30 frames per second
• Picture taking application
• JPEG (JFIF) encode at user-definable quality
  levels
• Tradeoff between quality and file size
• PNG encode
• Self Timer
• Digital Zoom
• White LED flash support
• Create and View Albums
• Image Process Library for image manipulation
• Transmit pictures to other users
• Save pictures to FLASH or MMC
• GPS Location Information
• BREW Interfaces for 3rd party imaging/value-added
  functionality

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Qualcomms Mobile Video Solutions
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A feature rich video decoder that enables mobile
devices to stream playback content files. Qtv
is the heart of wireless applications including
streaming video on demand (VOD), mobile live cams
and video mail services.

• Video Codecs
• MPEG-4 Simple Profile Level 0b
• H.263 Profile 0/3 Level 45
• H.264 Baseline
• RealVideo 8, 9, 10
• Audio Codecs
• QCELP -- 13kbps fixed full and half rates
• EVRC -- 8kbps fixed full rate
• AMR-NB all rates
• AAC Low Complexity-- 128kbps, 64 kbps, 32kbps,
  16kbps
• AAC Plus - 128kbps, 64 kbps, 32kbps, 16kbps

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• A video encoding solution built upon QCTs
  camera architecture and APIs. The solution
  offers real-time encoding of video to enable
  video messaging applications.
• Video File Format
• MPEG-4 Simple Profile Level 0b
• H.263 baseline Profile 0 and Level 45
• Audio File Format
• QCELP 13.3kbps fixed full and half rates
• EVRC -- 8kbp fixed full rate
• AMR -- 12.2kbps
• File Extension Support
• .3g2
• .3gp
• .amc
• .k3g
• .skm

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Qcamcorder Feature Rich Application

• Video Preview Mode Viewfinder
• Constant Bit rate Encoding Quality (Low48kbps,
  Med64kbps, High80kbps )
• Record Movie, Stop Record Movie Pause Movie
  functions
• Zoom Control
• Brightness Control
• Contrast Control
• Save Video Output Media Selection Flash or MMC
• Audio Dubbing
• Video Editing
• CIF, VGA and MP image sensor support
• Interoperates with Qtv

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• 2-way video conferencing application that had
  been tailored to 3G networks such as EvDO and
  UMTS.
• Video File Format
• MPEG-4 Simple Profile Level 0
• H.263 Profile 0 / 3, Level 10
• Audio File Format
• AMR -- lt12.2kbps
• EVRC -- 8kbps fixed full rate
• G.723.1 all rates
• Protocols
• H.324M
• SIP
• H.245 Control Protocol for reliable transmission
• H.223 for Multiplexing/De-Multiplexing

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Qvideophone Feature Rich Application

• A reference videophone application is provided to
  OEMs in source code which contains many of the
  basic functions/features. QCOM exposes the APIs
  to enable OEMs to customize and enhance the
  reference application to suite the needs of their
  customers.
• Reference app includes features such as
• Push to Video
• Picture-in-Picture Support
• Video Zooming
• Ability to convert to an audio-only call at any
  time (Speech Fallback)
• Video or Audio Mute Capability
• User Selectable Encode Quality Settings
• Set-up, Call, Hold and End Call
• PSTN Interoperable (Mobile to PC video call)
• Interoperates with Qtv Qcamcorder

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Thank you