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1 John Stefanac President, Southeast Asia & Pacific Qualcomm Incorporated

Qualcomm HK Analyst Seminar FINAL - CDGcdg.org/news/events/CDMASeminar/10_HongKong_Financial_Analyst...Not all licensees report sales, selling prices and/or unit shipments the same

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Page 1: Qualcomm HK Analyst Seminar FINAL - CDGcdg.org/news/events/CDMASeminar/10_HongKong_Financial_Analyst...Not all licensees report sales, selling prices and/or unit shipments the same

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John Stefanac

President, Southeast Asia & PacificQualcomm Incorporated

Page 2: Qualcomm HK Analyst Seminar FINAL - CDGcdg.org/news/events/CDMASeminar/10_HongKong_Financial_Analyst...Not all licensees report sales, selling prices and/or unit shipments the same

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Note : 3G includes CDMA2000, WCDMA and TD-SCDMA

Source: Wireless Intelligence estimates as of Apr 19, 2010 for the quarter ending Mar 31, 2010; number of unique wireless connections.CDG and Global Mobile Suppliers Association as of April 2010

3G Countries Non 3G Countries

The mobile phone has become the biggest platform in the history of mankind

5 Billion total Subscribers>1B 3G Subscribers Today

Expected to be ~2.8B by 2014

Page 3: Qualcomm HK Analyst Seminar FINAL - CDGcdg.org/news/events/CDMASeminar/10_HongKong_Financial_Analyst...Not all licensees report sales, selling prices and/or unit shipments the same

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Regional* CDMA-Based Device Shipment EstimatesCALENDAR YEAR, MILLIONS, MIDPOINTS, AS OF JULY 21, 2010

Note: Total reported device sales is the sum of all reported sales in U.S. dollars (as reported to us by our licensees) of all licensed CDMA-based subscriber devices (including handsets, modules, modem cards and other subscriber devices) by our licensees during a particular period. The reported quarterly estimated ranges of ASPs and unit shipments are determined based on the information as reported to us by our licensees during the relevant period and our own estimates of the selling prices and unit shipments for licensees that do not provide such information. Not all licensees report sales, selling prices and/or unit shipments the same (e.g., some licensees report selling prices net of permitted deductions, such as transportation, insurance and packing costs, while other licensees report selling prices and then identify the amount of permitted deductions in their reports), and the way in which licensees report such information may change from time to time. Total reported device sales, estimated unit shipments and estimated ASPs for a particular period may include prior period activity that is reported with the activity for the particular period. For results using assumptions in effect for quarters prior to the second quarter of fiscal 2010, please refer to the “Changes to QTL Metrics” table of our April 21, 2010 earnings release that was furnished to the Securities and Exchange Commission on Form 8-K. The midpoints of the estimated ASP and device shipment ranges for the relevant periods are identified for comparison purposes only and do not indicate a higher degree of confidence in the midpoints.

297

382

476

600-650e

4

+18~28%+18~28%

500-516

WCDMA 97 173 260 295 389 est.CDMA 200 209 216 213 236 est.Total 297 382 476 508 625 est.

* Regional device shipments are Qualcomm estimates and include handsets, data devices, telematics, security devices and some quantity of channel inventory. WCDMA includes TD-SCDMA.

** WCDMA ROW includes North America.

Page 4: Qualcomm HK Analyst Seminar FINAL - CDGcdg.org/news/events/CDMASeminar/10_HongKong_Financial_Analyst...Not all licensees report sales, selling prices and/or unit shipments the same

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Chipset Innovation Driving Device Choice and Growth

$20 3G DEVICES FOR EMERGING

MARKETS

1.5GHZ MOBILE

PROCESSORS

SUPPORT FOR MULTIPLE POPULAR

OPERATING SYSTEMS

POWERCONSUMPTION

INTEGRATION MULTIMEDIA PROCESSING MULTIMODE FOOTPRINT

Page 5: Qualcomm HK Analyst Seminar FINAL - CDGcdg.org/news/events/CDMASeminar/10_HongKong_Financial_Analyst...Not all licensees report sales, selling prices and/or unit shipments the same

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Tightly Integrate Software with Hardware:Enhancing User Experience with Optimization

Longer battery life

Better performing videos

Faster web page rendering

Richer 3D graphics

New features and functionality (P2P)

Reduced non-recurring engineering

Faster time-to-market

Mapping application with the best available radio network

Developer / OEM Benefits

Consumer Benefits

Page 6: Qualcomm HK Analyst Seminar FINAL - CDGcdg.org/news/events/CDMASeminar/10_HongKong_Financial_Analyst...Not all licensees report sales, selling prices and/or unit shipments the same

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Addressing Key Features in Value TierQUALCOMM Single-Chip Solution (QSC)

QSC6085

QSC6075

QSC6065

QSC6030

QSC

QSC6020• MPEG4 decode• Integrated 1.3 MP camera• 153 kbps data• MP3/AAC/AAC+/EAAC+• ARM9

• Up to QCIF+Video /Camcorder

• Up to 3.0 MP Camera• Stereo MP3/AAC/AAC+/eAAC+• Dual band, SGPS, QLIC• Up to 3MP Camera• BREW/Java support

QSC1100• 14.4 kbps, BREW support• 32 Poly• Voice, SMS Centric• QLIC• 2X Improvement in Talk Time

Multi-Band

Secure Boot4GV

QSC1110 • 153.6kbps data• 72 Poly (CMX)• BT 2.1, SDIO• Stereo MP3/AAC/AAC+/EAAC+• 2MP camera, 15fps@QCIF camcorder• QVGA LCD

QSC6055

Dual-Band +S-GPS

Single-Band

Page 7: Qualcomm HK Analyst Seminar FINAL - CDGcdg.org/news/events/CDMASeminar/10_HongKong_Financial_Analyst...Not all licensees report sales, selling prices and/or unit shipments the same

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OMH™ InitiativeEnhancement of the CDMA ecosystem by offering a greater selection of devices, through multiple channels of distributionBenefits

Increases handset availability and varietyAllows same device to be sold into multiple operators / marketsReduces time-to-market and eliminates operator-specific testingUplifts handset tier and subscriber ARPU

Industry participation from 50+ unique operators, device OEMs (handset and SIM vendors) and distributors1st OMH device announced August 2009Eleven devices to date

3G Packet DataApplication DownloadsLocation Based ServicesMMSWAP / Browser

Operator NameSMSVoice

OMH Device  + R‐UIM / SIM

Page 8: Qualcomm HK Analyst Seminar FINAL - CDGcdg.org/news/events/CDMASeminar/10_HongKong_Financial_Analyst...Not all licensees report sales, selling prices and/or unit shipments the same

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1Peak rate for 3 EV-DO carriers supported by initial implementation.2Peak rate for 3 EV-DO carriers with 64QAM in the DL. Rev. B standard supports up to 15 aggregated Rev. A carriers.

3DO Advanced peak rate for 4 Rev. B carriers; Assumes 64QAM in the DL.4Capacity increase possible with new codec (EVRC-B) and handset interference cancellation (QLIC). 54x increase with receive diversity; 3x without

1X and EV-DO Have Strong Evolution Paths

DL: 3.1 MbpsUL: 1.8 Mbps

DL: 9.3 Mbps1

UL: 5.4 MbpsDL: 14.7 Mbps2

UL: 5.4 Mbps

Broadband Up & Downloads Low Latency, QoS and VoIP

DL: 19.6 Mbps3

UL: 7.2 Mbps3

Higher network capacity and improved user experience

3x data rates to all users in cell

2010 2011 2012+Note: Estimated commercial dates

Higher capacityand data rates

4x increase compared to today’s voice capacity5

Best in class voice capacity

1.5x increase with available features4

2010 2011 2012+Note: Estimated commercial dates

H/W UpgradeMulticarrierRel. 0 Rev. ADO

AdvancedEV-DO EV-DO Rev. B

1X Advanced1XCDMA2000

Simultaneous 1X Voice and EV-DO Data

Created 04/06/10