A Closer Look At Qualcomm

On the occasion of the annual Uplinq summit, we were invited to San Diego, California to the head office of Qualcomm—world leader in the manufacture of chips for mobile devices and the seventh largest chip-maker on the planet. For each of the last four years, we've had the opportunity of visiting the company's headquarters, meeting its executives and testing its new technology.


While Qualcomm remains relatively unknown to the general public, its famous SnapDragon chip, found, for example, in the latest HTC, Acer and Google smartphones, has brought it out of the shadows somewhat. With a hand in all mobile sectors, from the entry level to the high end, and from the USA to China, Qualcomm invests 20% of its turnover in R&D for mobile solutions. Unequivocal and continuous innovation plus the diversification of skills and knowledge is its strategy for success.

From CDMA to the Smartbook

Set up in 1985, the company went on to introduce CDMA in 1989—a new standard in 2G communications, and then competitor to GSM. Renamed WCDMA with the arrival of 3G, the technology is adapted to GSM networks and has therefore gained ground throughout the world. This has in turn guaranteed enormous returns for Qualcomm. Over time, by reinvesting part of its profits in research, Qualcomm has become one of the largest suppliers of solutions (components, software) to mobile manufacturers and operators.

By investing in mobility markets (LTE notably, a 4G standard), the company has registered and bought numerous patents, as you can see in the photo below. In fact, thanks to its ownership of various licences—including 3G licences—Qualcomm earns money on every mobile phone that's sold!

During our visit, it wasn't hard to spot the signs of satisfaction when it was announced that Verizon will have the right to sell the iPhone 4 in the US (all iPhones have until now been sold exclusively by AT&T in the United States).

However, having so many patents means that Qualcomm is constantly engaged in legal battles with its competitors, and indeed some of its partners as well. In Europe, the company has been attacked several times because of its dominant position and anti-competitive attitude. Generally though, for the sake of a fee, everyone ends up getting along most of the time. In business, the magic of 'mutual consent' is all part of the game.

Qualcomm has rapidly become a successful and sizeable partner for manufacturers from HTC, a phone-maker on the rise, to ZTE, attacking the market from below. The company has even gone as far as to plan the launch of a new ultramobile web-connected computer concept—the smartbook—at a time when the market is inundated with smartphones and netbooks.

Will it catch on? While Qualcomm still believes, until now, just one model by HP (Airlife 100) has hit the market so far. You win some, you lose some, and the company will continue taking risks.

Qualcomm presents the happy public face of an American company on whom luck smiles. In private, it shows a strong will and a certain ambitious arrogance—typical characteristics of those who are raised in a big country where 'anything's possible'.