QUALCOMM is a leading developer and licensor of digital wireless telecommunications technology based on CDMA. It generates revenue primarily through chipset sales and licensing fees. To maintain success, QUALCOMM should encourage emerging markets to adopt its 3G CDMA2000 technology, defend its position against rival 4G technologies through innovation and partnerships, and leverage its financial strength.

1. QUALCOMM, Inc. 2004 Bill Hartanovich Zoleikha Ozbay Ertan Karakas Trent Williams Ted Pledger

6. Prerequisites for Success How does the firm survive competition? What do customers want? Who are our customers? - Samsung, Motorola, Kyocera, LG & licensees (e.g. NEC & TI) What do they want? - IP rights/affordable, quality chipsets What drives competition? - Efficient use of spectrum What are the main dimensions of competition? - R&D, licensing, standards How intense is competition? - Not much How can we obtain a superior competitive position? - Expand licensing agreements, remain innovative into 4G tech. KEY SUCCCESS FACTORS

19. Functionality - Throughput Interoperability - Open Standards VALUE 1984 1992 2003 2006 1G 3G 2G 4G Past and Present Future 2005 Wireless Communications Life Cycle N O I T A R T E N E P

20. Group Analysis: Technology and the Market Market Presence 1G Nokia, Samsung, TI FDMA (1G) GSM (2G) CDMA (2G) CDMA2000 (3G) WCDMA (3G) Flarion and ClearWire OFDM (4G) Emerging Nations 2G 3G 4G China TD-SCDMA (3G) QUALCOMM CDMA (2G) CDMA2000 (3G) CDMA EV-DV (3G) 802.16e WiMax Developed Nations Technology Platform An Open Future

21. Market Acceptance vs. Appropriating Returns QUALCOMM Maximizing Market Acceptance Maximizing Appropriation of Profit

22. Global Cellular Market 20% 20% $4.9 Billion in revenues $7.4 Billion in revenues 20% 20%

23. Complementary Resources Service CDMA WCDMA CDMA 2000 Licensing Engineering (R&D) Global Carrier Relations Finance Innovation Manufacturing& Distribution Governmental Relations Service Licensing Engineering (R&D) Global Carrier Relations Finance