Full Description

QUALCOMM Incorporated (QUALCOMM), incorporated in 1985, designs, manufactures and markets digital wireless telecommunications products and services based on its code division multiple access (CDMA) technology and other technologies. The Company operates through four segments: Qualcomm CDMA Technologies (QCT); Qualcomm Technology Licensing (QTL); Qualcomm Wireless & Internet (QWI), and Qualcomm Strategic Initiatives (QSI). QCT is a developer and supplier of CDMA-based integrated circuits and system software for wireless voice and data communications, multimedia functions and global positioning system products. QTL grants licenses to use portions of its intellectual property portfolio, which includes certain rights essential to and/or useful in the manufacture and sale of certain wireless products. QWI, which includes Qualcomm Enterprise Services (QES), Qualcomm Internet Services (QIS), Qualcomm Government Technologies (QGOV) and Firethorn, generates revenues primarily through mobile information products and services, software and software development aimed at support and delivery of wireless applications. QSI makes investments to promote the worldwide adoption of CDMA products and services. In October 2009, the Company announced that it established a wholly owned subsidiary, Qualcomm Innovation Center, Inc. (QuIC), focused on mobile open source platforms.

Qualcomm CDMA Technologies Segment

QCT’s integrated circuit products and system software are used in wireless devices, particularly mobile phones, laptops, data modules, handheld wireless computers, data cards and infrastructure equipment. QCT markets and sells products in the United States and internationally through a sales force based in the United States, China, France, Germany, India, Japan, South Korea, Spain, Taiwan and the United Kingdom. QCT products are sold to many wireless handset, data card, laptop and infrastructure manufacturers. During the fiscal year ended September 27, 2009 (fiscal 2009), QCT shipped approximately 317 million mobile station modem (MSM) integrated circuits for CDMA wireless devices worldwide. QCT revenues comprised 59% of total consolidated revenues in fiscal 2009.

QCT offers a portfolio of products, including both wireless device and infrastructure integrated circuits, in support of CDMA2000 1X and 1xEV-DO, as well as the EV-DO Revision A and EV-DO Revision B evolutions of CDMA 2000 technology. It has also developed integrated circuits for manufacturers and wireless operators deploying the wideband code division multiple access (WCDMA) version of third generation (3G). QCT also offers chipsets for less local area network (WLAN) and Bluetooth, complementary connectivity technologies to its core 3G products. For WLAN, QCT offers both the WCN1320 chip that delivers up to four 802.11n spatial streams for high-speed connectivity in residential settings and the WCN1312 chip for handsets and other mobile devices. QCT’s Bluetooth chips support Bluetooth connectivity for handsets and headsets.

Qualcomm Technology Licensing Segment

QTL’s wireless products include property portfolio, which includes cdmaOne, CDMA2000, WCDMA, CDMA time division Duplex (TDD) (including TD-SCDMA), global system for mobile communications/ general packet radio system/ enhanced data rates for global evolution and/or orthogonal frequency division multiplexing access (GSM/GPRS/EDGE and/or OFDMA) standards and their derivatives. QTL receives license fees, as well as ongoing royalties based on worldwide sales by licensees of products incorporating or using its intellectual property. License fees are fixed amounts paid in one or more installments. It has entered into agreements with certain companies, including but not limited to Broadcom, Fujitsu, Infineon, NEC, Philips, Renesas and Texas Instruments. These agreements permit the manufacture of CDMA-based integrated circuits.

Qualcomm Wireless & Internet Segment

The QIS division offers a set of software products and content enablement services to support and accelerate the growth of the wireless data market. QIS offers Binary Runtime Environment for Wireless (BREW) services for wireless applications development, device configuration, application distribution and billing and payment. BREW services are offered by more than 60 wireless operators in 27 countries, reaching a base of more than 200 million devices. In addition, QIS announced the Plaza suite of products in fiscal 2009, to enable wireless operators, device manufacturers and publishers to create mobile content across a variety of platforms and devices. Plaza Mobile Internet is an end-to-end widget platform that offers wireless operators and publishers a framework for the development, support and management of Internet-based content on a variety of handsets. In July 2009, QIS announced America Movil as the first customer for Plaza Mobile Internet. It also offers Xiam wireless content discovery and recommendation products to help wireless operators improve usage and adoption of digital content and services by presenting relevant and targeted offers to customers across all digital channels.

The QES division provides equipment, software and services to enable companies to wirelessly connect with their assets and workforce. QES offers satellite- and terrestrial-based two-way wireless connectivity and position location services to transportation and logistics fleets and other enterprise companies that permit customers to track the location and monitor performance of their assets, communicate with their personnel and collect data. The QES division markets and sells products through a sales force, partnerships and distributors based in the United States, Europe, Latin America, Asia and Canada. The QGOV division provides development, hardware and analytical expertise involving wireless communications technologies to United States government (USG) agencies. QGOV adapts, integrates and ships CDMA2000 1X and EV-DO deployable base stations to the USG. QGOV also ships second generation (2G) CDMA secure wireless terrestrial phones that operate in enhanced security modes and incorporate end-to-end encryption to the USG.

Firethorn provides a single, secure, certified application embedded on select wireless devices, which enables financial institutions and merchants to deliver branded services to consumers though the mobile devices. Its application enables wireless operators to deliver consumer-convenient, mass-market applications to subscribers, and mobile device users to access and add multiple financial relationships with one password. QWI revenues comprised 6% of total consolidated revenues in fiscal 2009.

Qualcomm Strategic Initiatives Segment

QSI manages its strategic investment activities, including FLO TV Incorporated, its wholly owned wireless multimedia operator subsidiary. Its FLO TV subsidiary operates a nationwide multicast network in the United States based on its MediaFLO Media Distribution System (MDS) and MediaFLO technology. FLO TV uses 700 megahertz (MHz) spectrum for which it hold licenses nationwide to deliver video and audio programming to wireless subscribers. Additionally, FLO TV procures, aggregates and distributes content in service packages, which it makes available on a wholesale basis to its wireless operator customers in the United States. FLO TV’s Broadcast Operations Center and Network Operations Center are based in San Diego, California.

Other Businesses

Qualcomm MEMS Technologies (QMT) is developing display technology for the full range of consumer-targeted mobile products. Qualcomm Flarion Technologies (QFT) is the developer and provider of fast low-latency access with seamless handoff-OFDM (FLASH-OFDM). MediaFLO Technologies (MFT) is developing its MediaFLO technology and marketing it for deployment outside of the United States. In addition, the Company was pursuing numerous other international opportunities to market and deploy MediaFLO technology worldwide.

The Company competes with Freescale, Infineon, Marvell, Mediatek, ST-Ericsson, Texas Instruments, VIA Telecom, Ericsson, Matsushita and Motorola.