Qualcomm 2012 Annual Report Download - page 25

products may not be available when we need it or at reasonable prices. To the extent we do obtain long-term capacity commitments, we may
incur additional costs related to those commitments. As an example, we experienced capacity limitations from our suppliers related to 28
nanometer integrated circuits, resulting in supply constraints and our inability to meet certain customer demand during fiscal 2012. Even as we
continue to increase our supply of 28 nanometer integrated circuits, we may still experience supply shortages for our 28 nanometer integrated
circuit products during the early part of fiscal 2013. We have incurred, and expect to continue to incur, increased operating expenses as we
facilitate additional supply.
One or more of our suppliers or potential alternate suppliers may manufacture CDMA- or OFDMA-based integrated circuits that compete
with our products. In this event, the supplier could elect to allocate raw materials and manufacturing capacity to their own products and reduce or
limit deliveries to us to our detriment. In addition, we may not receive reasonable pricing, manufacturing or delivery terms. We cannot guarantee
that the actions of our suppliers will not cause disruptions in our operations that could harm our ability to meet our delivery obligations to our
customers or increase our cost of sales.
Global economic conditions that impact the communications industry could negatively affect the demand for our products and our customers
’ products, which may negatively affect our revenues.
A decline in global economic conditions, particularly in geographic regions with high customer concentrations, could have adverse, wide-
ranging effects on demand for our products and for the products of our customers, particularly equipment manufacturers or others in the wireless
communications industry who buy their products, such as wireless operators. Any prolonged economic crisis may result in a downturn in
demand for our products or technology; the insolvency of key suppliers; delays in reporting and/or payments from our licensees and/or
customers; failures by counterparties; and negative effects on wireless device inventories. In addition, our direct and indirect customers’ ability
to purchase or pay for our products and services, obtain financing and upgrade wireless networks could be adversely affected by economic
conditions, leading to a reduction, cancellation or delay of orders for our products.
Our stock price and earnings are subject to substantial quarterly and annual fluctuations and to market downturns.
Both the market price of our common stock and our earnings have fluctuated in the past and are likely to fluctuate in the future as well.
Factors that may have a significant impact on the market price of our stock and/or earnings include, among others:
In the past, securities class action litigation often has been brought against a company following periods of volatility in the market price of its
securities. Due to changes in our stock price, we may be the target of securities litigation in the future. Securities litigation could result in
substantial uninsured costs and divert management’s attention and resources.
We may engage in acquisitions or strategic transactions or make strategic investments that could adversely affect our financial results or fail
to enhance stockholder value.
We engage in acquisitions or strategic transactions or make strategic investments with the goal of maximizing stockholder value. We acquire
businesses and other assets, including wireless spectrum, patents and other intangible assets, enter into joint ventures or other strategic
transactions and purchase minority equity interests in or make loans to companies that are generally
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• volatility of the stock market in general and technology-based companies in particular that is often unrelated to the operating
performance of any specific public company;
• announcements concerning us or our competitors, including the selection of wireless communications technology by wireless operators
and the timing of the roll-out of those systems;
•
international developments, such as technology mandates, political developments or changes in economic policies;
•
changes in recommendations of securities analysts;
• earnings (or forecasts) that fail to meet financial guidance that we provided to investors or the expectations of investment analysts or
investors;
•
proprietary rights, product or patent litigation taken or threatened against us or against our customers or licensees;
• strategic transactions, such as spin-
offs, acquisitions and divestitures;
• unexpected and/or significant changes in the average selling price of our licensees’
products and our products;
• unresolved disputes with licensees that result in non-payment and/or non-
recognition of royalty revenues that may be owed to us;
•
declines in the value or performance of our significant marketable securities portfolio, which is subject to financial market volatility and
liquidity, interest rate, credit and other risks; or
•
inquiries, rumors or allegations regarding our financial disclosures, practices or compliance programs.