Qualcomm at Merrill Lynch Conference Notes

Steve Mollenkopf – CEO

I think we’ve benefited a lot from the fabless model

“I think the fabless model served us well actually. The ability to concentrate our R&D dollars in the area that gives us differentiation is very important. I think it’s also different in the handset business, the market dynamics, and the difficulty in managing fab utilization with just the dynamics of the market, how quickly mix can change, how quickly the market can change. It is very different then let’s say the PC space for example. And I think it will be very difficult to match those things and we’ve benefitted I think a lot from the fabless model.”

Pleased with the transistor roadmap from Samsung and TSMC

” The transistor roadmap that we are seeing from TSMC and from Samsung, we are pleased with it. I think it actually it gives us a strong competitive position. I remember the transistor is not just speed and things it’s actually about density, its cost, it’s the ability to do RF in the same design.”

These phone launches are like movie launches

” these new phone launches are almost like movie launches. They have a very, very concentrated marketing period. They sell a lot of devices in a short period of time and they launch worldwide on the same day or roughly the same day.”

Low end handsets on even a faster product cycle

“the thing that always surprises people is at the low tier of particularly China it is on a fairly fast product cycle. Every six months or so it turns over to a different chip.”‘

A challenge for us is how do we diversify outside of handset over next 5-10 years

“I think one of the challenges for Qualcomm is how do we add significant businesses outside of the handset space that provides a diversity gain that I think we’ll need. And part of the challenge for the next 5 years and next 10 years is how do we deliver on both the extension of our current business in adjacent markets and then what markets do we go into that are new.”

Data-center is one area

“We have recently announced last November we announced that we are going to move to the datacenter. We knew it was going to be a long play, it is something that we are going to have to grow in order to be successful and new capabilities that we are going to have but things that play to our core competency, but allow us to grow into new markets and can we go into using M&A.”