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Operating Segments
We have three reportable segments. We conduct business primarily through two reportable segments, QCT (Qualcomm CDMA
Technologies) and QTL (Qualcomm Technology Licensing), and our QSI (Qualcomm Strategic Initiatives) reportable segment makes strategic
investments. QSI did not have revenues in any periods presented. Revenues in fiscal 2014 , 2013 and 2012 for our reportable segments were as
follows (in millions, except percentage data):
QCT Segment. QCT is a leading developer and supplier of integrated circuits and system software based on CDMA, OFDMA and other
technologies for use in voice and data communications, networking, application processing, multimedia and global positioning system products.
QCT’s integrated circuit products are sold and its system software is licensed to manufacturers that use our products in wireless devices,
particularly mobile phones, tablets, laptops, data modules, handheld wireless computers and gaming devices, access points and routers, data
cards and infrastructure equipment, and in wired devices, particularly broadband gateway equipment, desktop computers and streaming media
players. Our Mobile Station Modem (MSM) integrated circuits, which include the Mobile Data Modem, Qualcomm Single Chip and Qualcomm
Snapdragon processors, perform the core baseband modem functionality in wireless devices providing voice and data communications, as well
as multimedia applications and global positioning functions. In addition, our Snapdragon processors provide advanced application and graphics
processing capabilities. Because of our experience in designing and developing CDMA- and OFDMA-based products, we design both the
baseband integrated circuit and the supporting system as well, including the RF (Radio Frequency), PM (Power Management) and connectivity
devices. This approach enables us to optimize the performance of the wireless device with improved product features and integration with the
network system. Our portfolio of RF products includes QFE (Qualcomm Front End) radio front end components that are designed to simplify the
RF design for LTE multimode, multiband mobile devices, reduce power consumption and improve radio performance. QCT’s system software
enables the other device components to interface with our integrated circuit products and is the foundation software enabling manufacturers to
develop devices utilizing the functionality within the integrated circuits. We also provide support, including reference designs and tools, to
enable our customers to reduce the time required to design their products and bring their products to market faster. We plan to add additional
features and capabilities to our integrated circuit products to help our customers reduce the cost and size of their products, to simplify our
customers’ design processes and to enable more wireless devices and services.
QCT offers a broad 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/B evolutions of CDMA 2000 technology. Leveraging our expertise in CDMA, we also develop
and offer integrated circuits supporting the WCDMA version of 3G for manufacturers of wireless devices. More than 90 device manufacturers
have selected our WCDMA products that support GSM/GPRS, WCDMA, HSDPA (High-Speed Downlink Packet Access), HSUPA (High-
Speed Uplink Packet Access) and HSPA+ for their devices. QCT also sells multimode products for the LTE standard, which offer seamless
backward compatibility to existing 3G technologies. Our integrated circuit products are included in a broad range of devices, from low-tier,
entry-level devices for
5
•
graphics and display processing functionality;
• video coding based on H.264 standards, which has already been deployed commercially, and its successor, H.265, or high-efficiency
video codec, which will be deployed to support ultra-high definition (4K) video content;
•
audio coding, including for multimedia use and for voice/speech use (also known as Vocoding);
•
camera and camcorder functions;
•
system user and interface features;
•
security and content protection systems;
• volatile (LP-DDR2, 3, 4) and non-
volatile (eMMC) memory and related controllers; and
•
power management systems and batteries.
QCT
QTL
2014
$
18,665
$
7,569
As a percent of total
70
%
29
%
2013
$
16,715
$
7,554
As a percent of total
67
%
30
%
2012
$
12,141
$
6,327
As a percent of total
63
%
33
%