Qualcomm 2004 Annual Report Download - page 8

04฀฀QUALCOMM฀฀฀
for฀higher฀speed฀and฀higher฀data฀capacity฀with฀lower฀
latency.฀We฀are฀now฀working฀with฀26฀WCDMA฀manufac-
turers฀worldwide฀to฀enable฀advanced฀and฀competitively฀
priced฀WCDMA฀mobile฀devices.฀More฀than฀40฀WCDMA฀
devices฀are฀now฀commercially฀available,฀and฀we฀estimate฀
approximately฀23฀million฀units฀were฀sold฀in฀calendar฀2004.฀
The฀recent฀decisions฀made฀by฀Sprint฀PCS฀to฀deploy฀
CDMA2000฀1xEV-DO฀and฀Cingular฀Wireless฀to฀deploy฀
WCDMA฀technology฀in฀North฀America฀serve฀as฀com-
pelling฀examples฀of฀operators฀realizing฀the฀competitive฀
edge฀provided฀by฀3G฀CDMA.฀As฀an฀increasing฀number฀
of฀wireless฀operators฀around฀the฀world฀migrate฀from฀฀
2G฀and฀2.5G฀legacy฀networks฀to฀3G฀CDMA฀networks,฀
the฀total฀addressable฀market฀for฀QUALCOMM฀chipset฀
sales฀will฀rapidly฀expand.
Further,฀the฀recent฀announcement฀by฀AT&T฀to฀re-enter฀
the฀market฀as฀a฀mobile฀virtual฀network฀operator฀(MVNO)฀
utilizing฀the฀Sprint฀PCS฀network,฀recognizes฀the฀value฀฀
of฀delivering฀3G฀services฀over฀CDMA-based฀networks.฀
The฀MVNO฀model฀has฀shown฀great฀success฀in฀Europe฀
and฀now฀in฀the฀United฀States.
FUELING฀INDUSTRY฀GROWTH
As฀part฀of฀our฀business฀model,฀the฀entire฀QUALCOMM฀
organization฀is฀focused฀on฀wireless฀leadership฀through฀
a฀continuous฀cycle฀of฀envisioning,฀innovating฀and฀
enabling.฀The฀technology฀roadmap฀created฀by฀QCT,฀฀
for฀example,฀has฀delivered฀nine฀generations฀of฀chipsets,฀
each฀one฀faster,฀more฀integrated฀and฀more฀energy฀฀
efficient฀than฀those฀before.
QUALCOMM฀Wireless฀Business฀Solutions®฀(QWBS)฀
focuses฀on฀meeting฀the฀needs฀of฀enterprise฀with฀฀
an฀ever-growing฀array฀of฀products฀and฀services.฀
QUALCOMM฀Government฀Technologies฀(QGOV)฀
(formerly฀QUALCOMM฀Digital฀Media)฀took฀a฀new฀฀
name฀this฀year,฀reflecting฀its฀focus฀on฀government฀฀
affiliations฀and฀services.
QUALCOMM฀makes฀strategic฀investments฀in฀companies฀
and฀technologies฀that฀advance฀the฀evolution฀and฀adoption฀
of฀3G฀wireless฀data฀services฀around฀the฀world.฀A฀notable฀
example฀was฀our฀acquisition฀in฀calendar฀2004฀of฀Iridigm฀
Display฀Corporation,฀a฀company฀developing฀technology฀
which฀supports฀full-color,฀high-resolution฀displays฀with฀
reduced฀power฀consumption฀that฀are฀viewable฀in฀bright฀
daylight.฀This฀acquisition฀fits฀well฀with฀our฀overall฀strategy฀
of฀rapidly฀increasing฀the฀capability฀of฀wireless฀devices฀
while฀driving฀down฀cost,฀size฀and฀power฀consumption,฀
particularly฀for฀video฀applications.฀Iridigm฀will฀operate฀as฀
a฀wholly฀owned฀subsidiary฀of฀QUALCOMM.
Trigenix฀Ltd.,฀a฀mobile฀phone฀user฀interface฀company฀
based฀in฀the฀United฀Kingdom,฀was฀acquired฀in฀calendar฀
2004฀as฀a฀wholly฀owned฀subsidiary.฀When฀combined฀
with฀our฀BREW฀client฀software,฀Trigenix’s฀suite฀of฀tech-
nologies฀enables฀operators฀to฀differentiate฀their฀service฀
offerings฀and฀allows฀users฀to฀personalize฀their฀mobile฀
phones฀by฀choosing฀from฀a฀variety฀of฀themes.฀We฀
expect฀this฀acquisition฀to฀be฀particularly฀helpful฀as฀we฀
expand฀our฀presence฀in฀Europe.฀
We฀also฀acquired฀Spike฀Technologies฀in฀calendar฀฀
2004,฀a฀leading฀semiconductor฀design฀services฀com-
pany฀based฀in฀Milpitas,฀California฀with฀a฀design฀center฀
in฀Bangalore,฀India.฀Spike฀will฀be฀integrated฀into฀QCT,฀
expanding฀our฀engineering฀base฀and฀supporting฀฀
our฀effort฀to฀meet฀the฀growing฀worldwide฀demand฀for฀
our฀products.
We฀continue฀to฀advance฀technology฀by฀leading฀the฀
evolution฀of฀existing฀standards฀and฀by฀introducing฀new฀
capabilities.฀To฀substantially฀reduce฀the฀cost฀of฀delivering฀
high-resolution฀video฀content,฀QUALCOMM฀recently฀
announced฀an฀evolution฀of฀CDMA2000฀1xEV-DO฀
technology฀called฀Platinum฀Multicast฀and฀a฀new฀air฀
interface฀innovation฀called฀FLO™฀(Forward฀Link฀Only),฀
both฀designed฀to฀lower฀the฀cost฀of฀delivering฀rich฀
multimedia฀content฀to฀cellular฀devices.฀Additional฀
CDMA฀continues฀to฀be฀the฀fastest-growing฀wireless฀฀
฀ ฀ ฀ standard฀of฀all฀leading฀cellular฀technologies.*฀
Letter฀to฀Stockholders
*฀Source:฀CDMA฀Development฀Group