Qualcomm
Template:Short description Template:Use American English Template:Use mdy dates {{#invoke:Infobox|infobox}}Template:Template otherTemplate:Main other{{#invoke:Check for clobbered parameters|check|nested=1|template=Infobox company|cat=Template:Main other|name; company_name|logo; company_logo|logo_alt; alt|trade_name; trading_name|former_names; former_name|type; company_type|predecessors; predecessor|successors; successor|foundation; founded|founders; founder|defunct; dissolved|hq_location; location|hq_location_city; location_city|hq_location_country; location_country|num_locations; locations|areas_served; area_served|net_income; profit|net_income_year; profit_year|owners; owner |homepage; website }}{{#invoke:Check for unknown parameters|check|unknown=Template:Main other|preview=Page using Template:Infobox company with unknown parameter "_VALUE_" | ignoreblank=y | alt | area_served | areas_served | assets | assets_year | aum | brands | company_logo | company_name | company_type | defunct | dissolved | divisions | embed | equity | equity_year | fate | footnotes | former_name | former_names | foundation | founded | founder | founders | genre | homepage | hq_location | hq_location_city | hq_location_country | incorporated | image | image_alt | image_caption | image_size | image_upright | income_year | industry | ISIN | key_people | location | location_city | location_country | locations | logo | logo_alt | logo_caption | logo_class | logo_size | logo_upright | members | members_year | module | name | native_name | native_name_lang | net_income | net_income_year | num_employees | num_employees_year | num_locations | num_locations_year | operating_income | owner | owners | parent | predecessor | predecessors | production | production_year | products | profit | profit_year | rating | ratio | revenue | revenue_year | romanized_name | services | subsid | successor | successors | traded_as | trade_name | trading_name | type | website| qid | fetchwikidata | suppressfields | noicon | nocat | demo | categories }}
Qualcomm Incorporated (Template:IPAc-en)<ref>Template:Cite LPD</ref> is an American multinational corporation headquartered in San Diego, California, and incorporated in Delaware.<ref>{{#invoke:citation/CS1|citation |CitationClass=web }}</ref> It creates semiconductors, software and services related to wireless technology. It owns patents critical to the 5G, 4G,<ref name="qualcomm.com">{{#invoke:citation/CS1|citation |CitationClass=web }}</ref> CDMA2000, TD-SCDMA and WCDMA mobile communications standards.
Qualcomm was established in 1985 by Irwin Jacobs and six other co-founders. Its early research into CDMA wireless cell phone technology was funded by selling a two-way mobile digital satellite communications system known as Omnitracs. After a heated debate in the wireless industry, CDMA was adopted as a 2G standard in North America, with Qualcomm's patents incorporated.<ref name="Chafkin King 2017"/> Afterwards, there was a series of legal disputes about pricing for licensing patents required by the standard.<ref>{{#invoke:citation/CS1|citation |CitationClass=web }}</ref>
Over the years, Qualcomm has expanded into selling semiconductor products in a predominantly fabless manufacturing model. It also developed semiconductor components or software for vehicles, watches, laptops, wi-fi, smartphones, and other devices.
HistoryEdit
Early historyEdit
Qualcomm was created in July 1985<ref>Template:Cite news</ref><ref name="Chafkin King 2017" /> by seven former Linkabit employees led by Irwin Jacobs.<ref name="Mock2005" /> Other co-founders included Andrew Viterbi, Franklin Antonio, Adelia Coffman, Andrew Cohen, Klein Gilhousen, and Harvey White.<ref>Template:Cite news</ref> The company was named Qualcomm for "Quality Communications".<ref>Template:Cite news</ref> It started as a contract research and development center<ref name="Steinbock2003">Template:Cite book</ref> largely for government and defense projects.<ref name="Mock2005">Template:Cite book</ref><ref name="six" />
Qualcomm merged with Omninet in 1988 and raised $3.5 million in funding to produce the Omnitracs satellite communications system for trucking companies.<ref name="Mock2005" /> Qualcomm grew from eight employees in 1986 to 620 employees in 1991, due to demand for Omnitracs.<ref name="nytnyt">Template:Cite news</ref> By 1989, Qualcomm had $32 million in revenue, 50 percent of which was from an Omnitracs contract with Schneider National.<ref name="Mock2005" /><ref name="two">Template:Cite news</ref> Omnitracs profits helped fund Qualcomm's research and development into code-division multiple access (CDMA) technologies for cell phone networks.<ref name="Steinbock2003" /><ref name="tribunel" />
1990–2015Edit
Qualcomm was operating at a loss in the 1990s due to its investment in CDMA research.<ref name="Steinbock2003" /><ref name="tribunel">Template:Cite news</ref> To obtain funding, the company filed an initial public offering in September 1991,<ref>Template:Cite news</ref> raising Template:US$.<ref name="Mock2005" /> An additional Template:US$ was raised in 1995 through the sale of 11.5 million more shares. The second funding round was done to raise money for the mass manufacturing of CDMA-based phones, base-stations, and equipment, after most US-based cellular networks announced they would adopt the CDMA standard.<ref name="Steinbock2003" /> The company had Template:US$ in annual revenue in 1995<ref name="bwbw">Template:Cite newsTemplate:Dead linkTemplate:Cbignore</ref> and Template:US$ by 1996.<ref name="bw3" />
In 1998, Qualcomm was restructured, leading to a 700-employee layoff. Its base station and cell-phone manufacturing businesses were spun-off in order to focus on its higher-margin patents and chipset businesses.<ref name="Mock2005" /><ref name="Steinbock2003" />Template:RP Since the base station division was losing Template:US$ a year (having never sold another base station after making its 10th sale), profits skyrocketed in the following year, and Qualcomm was the fastest growing stock on the market with a 2,621 percent growth over one year.<ref>Template:Cite news</ref><ref name="sandiegomag">Template:Cite news</ref><ref>Template:Cite news</ref> By 2000, Qualcomm had grown to 6,300 employees, Template:US$ in revenues, and Template:US$ in profit. 39 percent of its sales were from CDMA technology, followed by licensing (22%), wireless (22%), and other products (17%).<ref name="Steinbock2003" /> Around this time, Qualcomm established offices in Europe, Asia Pacific, and in the Americas.<ref name="Steinbock2003" />Template:RP By 2001, 65 percent of Qualcomm's revenues originated from outside the United States with 35 percent coming from South Korea.<ref name="Steinbock2003" />Template:RP
In 2005, Paul E. Jacobs, son of Qualcomm founder Irwin Jacobs, was appointed as Qualcomm's new CEO.<ref name="nytsy">Template:Cite news</ref> Whereas Irwin Jacobs focused on CDMA patents, Paul Jacobs refocused much of Qualcomm's new research and development on projects related to the Internet of things.<ref name="nytsy" /> In the same year they acquired Flarion Technologies, a developer of wireless broadband Orthogonal Frequency Division Multiplex Access (OFDMA) technology.<ref>{{#invoke:citation/CS1|citation |CitationClass=web }}</ref>
Qualcomm announced Steven Mollenkopf would succeed Paul Jacobs as CEO in December 2013.<ref>Template:Cite news</ref><ref>Template:Cite news</ref> Mollenkopf said he would expand Qualcomm's focus to wireless technology for cars, wearable devices, and other new markets.<ref>{{#invoke:citation/CS1|citation |CitationClass=web }}</ref><ref name="Rubin 2014">{{#invoke:citation/CS1|citation |CitationClass=web }}</ref>
2015–2024: NXP, Broadcom and NuviaEdit
Qualcomm announced its intent to acquire NXP Semiconductors for $47 billion in October 2016.<ref name="Fortune 2016">{{#invoke:citation/CS1|citation |CitationClass=web }}</ref> The deal was approved by U.S. antitrust regulators in April 2017<ref name="Fortune 2017">{{#invoke:citation/CS1|citation |CitationClass=web }}</ref> with some standard-essential patents excluded to get the deal approved.<ref>{{#invoke:citation/CS1|citation |CitationClass=web }}</ref><ref name="Drozdiak 2018">{{#invoke:citation/CS1|citation |CitationClass=web }}</ref>
As the NXP acquisition was ongoing, Broadcom made a $103 billion offer to acquire Qualcomm,<ref>{{#invoke:citation/CS1|citation |CitationClass=web }}</ref><ref name="Mukherjee 2017">{{#invoke:citation/CS1|citation |CitationClass=web }}</ref> and Qualcomm rejected the offer.<ref name="Mukherjee 20172">{{#invoke:citation/CS1|citation |CitationClass=web }}</ref> Broadcom attempted a hostile takeover,<ref>{{#invoke:citation/CS1|citation |CitationClass=web }}</ref> and raised its offer, eventually to $121 billion.<ref name="dkahfad">{{#invoke:citation/CS1|citation |CitationClass=web }}</ref> The potential Broadcom acquisition was investigated by the U.S. Committee on Foreign Investment<ref>{{#invoke:citation/CS1|citation |CitationClass=web }}</ref> and blocked by an executive order from U.S. President Donald Trump, citing national security concerns.<ref>{{#invoke:citation/CS1|citation |CitationClass=web }}</ref>
Qualcomm's NXP acquisition then became a part of the 2018 China–United States trade war.<ref name="ouafhouh">{{#invoke:citation/CS1|citation |CitationClass=web }}</ref> U.S. president Donald Trump blocked China-based ZTE Corporation from buying American-made components, such as those from Qualcomm.<ref name="ouafhouh" /><ref name="The New York Times 2018">{{#invoke:citation/CS1|citation |CitationClass=web }}</ref> The ZTE restriction was lifted after the two countries reached an agreement,<ref name="Financial Times 2017">{{#invoke:citation/CS1|citation |CitationClass=web }}</ref> but then Trump raised tariffs against Chinese goods.<ref name="ouafhouh" /> Qualcomm extended a tender offer to NXP at least 29 times pending Chinese approval,<ref name="Reuters 2018">{{#invoke:citation/CS1|citation |CitationClass=web }}</ref> before abandoning the deal in July 2018.<ref>{{#invoke:citation/CS1|citation |CitationClass=web }}</ref><ref>{{#invoke:citation/CS1|citation |CitationClass=web }}</ref>
On January 6, 2021, Qualcomm appointed its president and chip division head Cristiano Amon as its new chief executive.<ref>Template:Cite news</ref>
On January 13, 2021, Qualcomm announced it would acquire Nuvia, a server CPU startup founded in early 2019 by ex-Apple and ex-Google architects, for approximately $1.4 billion.<ref>{{#invoke:citation/CS1|citation |CitationClass=web }}</ref><ref>{{#invoke:citation/CS1|citation |CitationClass=web }}</ref> The acquisition was completed in March 2021, and it was announced that its first products would be laptop CPUs, shipping in the second half of 2022.<ref>{{#invoke:citation/CS1|citation |CitationClass=web }}</ref>
In March 2022, Qualcomm acquired the advanced driver-assistance systems and autonomous driving software brand Arriver from the investment company SSW Partners.<ref>{{#invoke:citation/CS1|citation |CitationClass=web }}</ref>
In June 2022, Qualcomm acquired Israeli startup Cellwize through its investment arm Qualcomm Ventures.<ref>{{#invoke:citation/CS1|citation |CitationClass=web }}</ref>
In August 2022, Bloomberg News reported that Qualcomm was planning to return to server CPU market based on Nuvia's product.<ref>{{#invoke:citation/CS1|citation |CitationClass=web }}</ref> Later that month, Arm Ltd. announced that it sued Qualcomm and Nuvia for breaching license agreements and trademark violations.<ref>Template:Cite news</ref> Arm cited that the chip designs using Arm licenses developed by Nuvia could not be transferred to its parent Qualcomm without permission.<ref name=qcomxarm>Template:Cite news</ref> Qualcomm indicated that its licenses with Arm cover custom-designed processors.<ref name=qcomxarm />
In January 2023, the company announced a new partnership with Salesforce to develop a connected vehicle platform for automakers using the Snapdragon digital chassis.<ref>{{#invoke:citation/CS1|citation |CitationClass=web }}</ref>
In May 2023, Qualcomm announced their intent to purchase Israeli fabless chipmaking company Autotalks for a reported $350–400 million. The purchase is subject to review by the Competition and Markets Authority.<ref>{{#invoke:citation/CS1|citation |CitationClass=web }}</ref><ref>Template:Cite news</ref> In March 2024, it was announced by the Federal Trade Commission that Qualcomm's proposed acquisition of Autotalks has been terminated.<ref>{{#invoke:citation/CS1|citation |CitationClass=web }}</ref>
In September 2023, the company announced that it had signed a contract rumored to be worth $75 million per year for its Snapdragon brand to be the primary shirt sponsor for English football club Manchester United starting with the 2024–25 season, replacing German company TeamViewer.<ref>{{#invoke:citation/CS1|citation |CitationClass=web }}</ref><ref>Template:Cite news</ref>
In October 2023, Qualcomm introduced the Snapdragon X series, a computing platform for Windows PCs which includes a custom ARM-based Oryon CPU (from Nuvia acquisition), a GPU, and a dedicated neural processing unit.<ref>{{#invoke:citation/CS1|citation |CitationClass=web }}</ref><ref>{{#invoke:citation/CS1|citation |CitationClass=web }}</ref>
In October 2024, Qualcomm announced that the Qualcomm-Microsoft exclusive protocol will be expired in December 25 2024, allows Windows on ARM devices can adapt ARM CPUs other than Qualcomm Snapdragon.<ref>Template:Cite news</ref>
In October 2024, Arm Ltd. said it would cancel Qualcomm's chip design license in an escalation of the dispute over the acquisition of Nuvia.<ref>{{#invoke:citation/CS1|citation |CitationClass=web }}</ref> In December 2024, a U.S. federal jury ruled partially in Qualcomm's favor, finding that its designs were properly licensed under an agreement with Arm. However, the jury was deadlocked on one of three issues raised, resulting in a mistrial on that specific point.<ref>{{#invoke:citation/CS1|citation |CitationClass=web }}</ref><ref>{{#invoke:citation/CS1|citation |CitationClass=web }}</ref> In February 2025, Arm withdrew its efforts to terminate Qualcomm's chip-licensing agreement.<ref>Template:Cite news</ref>
2025 - Present: QualcommEdit
On 2 April 2025, Qualcomm acquired Movian AI, the generative artificial intelligence unit of Vietnamese research company VinAI.<ref>Template:Cite news</ref>
Wireless CDMAEdit
2GEdit
Early historyEdit
In mid-1985, Qualcomm was hired by Hughes Aircraft to provide research and testing for a satellite network proposal to the Federal Communications Commission (FCC).<ref name="Mock2005" />Template:RP The following year, Qualcomm filed its first CDMA patent (No. 4,901,307).<ref name="Mock2005" /> This patent established Qualcomm's overall approach to CDMA<ref name="Mock2005" /> and later became one of the most frequently cited technical documents in history.<ref name="BlaxillEckardt2009">Template:Cite book</ref>Template:RP The project with the FCC was scrapped in 1988, when the FCC told all twelve vendors that submitted proposals to form a joint venture to create a single proposal.<ref name="Mock2005" />Template:RP
Qualcomm further developed the CDMA techniques for commercial use and submitted them to the Cellular Telephone Industries Association (CTIA) in 1989 as an alternative to the time-division multiple access (TDMA) standard for second-generation cell-phone networks.<ref name="Mock2005" />Template:RP A few months later, CTIA officially rejected Qualcomm's CDMA standard<ref name="LeiSlocum2013">Template:Cite book</ref> in favor of the more established TDMA standard developed by Ericsson.<ref name="Steinbock2003" /><ref name="bw3">Template:Cite news</ref>
At the time, CDMA wasn't considered viable in high-volume commercial applications due to the near-far field effect, whereby phones closer to a cell tower with a stronger signal drown out callers that are further away and have a weaker signal.<ref name="Mock2005" />Template:RP<ref name="wsjalpha" /> Qualcomm filed three additional patents in 1989. They were for: a power management system that adjusts the signal strength of each call to adjust for the near-far field effect; a "soft handoff" methodology for transferring callers from one cell-tower to the next; and a variable rate encoder, which reduces bandwidth usage when a caller isn't speaking.<ref name="Mock2005" />Template:RP<ref name="wsjalpha" />
Holy wars of wirelessEdit
After the FCC said carriers were allowed to implement standards not approved by the CTIA, Qualcomm began pitching its CDMA technology directly to carriers.<ref name="Mock2005" /> This started what is often referred to as "the Holy Wars of Wireless", an often heated debate about whether TDMA or CDMA was better suited for 2G networks.<ref name="Mock2005" />Template:RP Qualcomm-supported CDMA standards eventually unseated TDMA as the more popular 2G standard in North America, due to its network capacity.<ref name="bw3" />
Qualcomm conducted CDMA test demonstrations in 1989<ref name="Klemens2010" /> in San Diego and in 1990 in New York City.<ref name="thanks" /><ref name="Chen2007" /> In 1990, Nynex Mobile Communications and Ameritech Mobile Communications were the first carriers to implement CDMA networks instead of TDMA.<ref name="thanks">Template:Cite news</ref> Motorola, a prior TDMA advocate, conducted CDMA test implementations in Hong Kong and Los Angeles.<ref>Template:Cite news</ref><ref name="wsjalpha">Template:Cite news</ref> This was followed by a $2 million trial network in San Diego for Airtouch Communications.<ref name="bw3" /><ref name="Chen2007">Template:Cite book</ref>Template:RP In November 1991, 14 carriers and manufacturers conducted large-scale CDMA field tests.<ref name="bw3" /><ref name="international">Template:Cite book</ref>
Results from the test implementations convinced CTIA to re-open discussions regarding CDMA and the 2G standard.<ref name="PhD2010">Template:Cite book</ref> CTIA changed its position and supported CDMA in 1993,<ref name="bw3" /> adopting Qualcomm's CDMA as the IS-95A standard, also known as cdmaOne.<ref name="LemstraHayes2010">Template:Cite book</ref> This prompted widespread criticism in forums, trade press, and conventions from businesses that had already invested heavily in the TDMA standard and from TDMA's developer, Ericsson.<ref name="bw3" /><ref name="PhD2010" />
The first commercial-scale CDMA cellular network was created in Hong Kong in 1995.<ref name="LemstraHayes2010" /> On July 21, 1995, Primeco, which represented a joint venture of Bell Atlantic, Nynex, US West and AirTouch Communications, announced it was going to implement CDMA-based services<ref name="bw3" /> on networks in 15 states.<ref name="LemstraHayes2010" /> By this time, 11 out of 14 of the world's largest networks supported CDMA.<ref name="bw3" /><ref name="economist">Template:Cite newsTemplate:Dead link</ref> By 1997 CDMA had 57 percent of the US market, whereas 14 percent of the market was on TDMA.<ref name="bw3" />
InternationalEdit
In 1991, Qualcomm and the Electronics and Telecommunications Research Institute (ETRI) agreed to jointly develop CDMA technologies for the Korean telecommunications infrastructure.<ref name="Reddick2012">Template:Cite book</ref><ref name="Pacific2004">Template:Cite book</ref> A CDMA standard was adopted as the national wireless standard in Korea in May 1993<ref name="Mock2005" /> with commercial CDMA networks being launched in 1996.<ref name="Pacific2004" /><ref name="Reddick2012" /> CDMA networks were also launched in Argentina, Brazil, Mexico, India, and Venezuela.<ref name="DrakeWilson2008">Template:Cite book</ref><ref name="HarperBuress2008">Template:Cite book</ref> Qualcomm entered the Russian and Latin American markets in 2005.<ref name="Mock2005" /> By 2007, Qualcomm's technology was in cell phone networks in more than 105 countries.<ref name="DrakeWilson2008" /> Qualcomm also formed licensing agreements with Nokia in Europe, Nortel in Canada, and with Matsushita and Mitsubishi in Japan.<ref name="Steinbock2003" />
Qualcomm entered the Chinese market through a partnership with China Unicom in 2000,<ref name="Steinbock2003" /> which launched the first CDMA-based network in China in 2003.<ref name="HarperBuress2008" /> China became a major market for Qualcomm's semiconductor products, representing more than fifty percent of its revenues,<ref name="reutreur">Template:Cite news</ref> but also the source of many legal disputes regarding Qualcomm's intellectual property.<ref name="wsjsj" /> By 2007, $500 million of Qualcomm's annual revenues were coming from Korean manufacturers.<ref name="OhLarson2011">Template:Cite book</ref>
ManufacturingEdit
Initially, Qualcomm's manufacturing operations were limited to a small ASIC design and manufacturing team to support the Omnitracs system.<ref name="Mock2005" /> Qualcomm was forced to expand into manufacturing in the 1990s in order to produce the hardware carriers needed to implement CDMA networks that used Qualcomm's intellectual property.<ref name="Mock2005" /> Qualcomm's first large manufacturing project was in May 1993, in a deal to provide 36,000 CDMA phones to US West.<ref name="Mock2005" /><ref name="Chen2007" />
For a time, Qualcomm experienced delays and other manufacturing problems, because it was inexperienced with mass manufacturing.<ref name="Steinbock2003" /> In 1994, Qualcomm partnered with Northern Telecom and formed a joint partnership with Sony, in order to leverage their manufacturing expertise.<ref name="Klemens2010" /> Nokia, Samsung and Motorola introduced their own CDMA phones in 1997.<ref name="Klemens2010">Template:Cite book</ref> Qualcomm's manufacturing business was losing money due to large capital equipment costs and declining prices caused by competition.<ref name="Klemens2010" /><ref name="BlaxillEckardt2009" /><ref name="Mock2005" /> Also, in March 1997, after Qualcomm introduced its Q phone, Motorola initiated a lawsuit (settled out of court in 2000) for allegedly copying the design of its Startac phone.<ref name="Inc.1997">Template:Cite book</ref><ref>Template:Cite news</ref>
In December 1999, Qualcomm sold its manufacturing interests to Kyocera Corporation, a Japanese CDMA manufacturer and Qualcomm licensee.<ref name="pike">Template:Cite news</ref><ref>Template:Cite news</ref> Qualcomm's infrastructure division was sold to competitor Ericsson in 1999 as part of an out-of-court agreement for a CDMA patent dispute that started in 1996.<ref name="thirteen">Template:Cite news</ref><ref>Template:Cite news</ref> The sale of the infrastructure division marked the beginning of an increase in Qualcomm's stock price and stronger financial performance, but many of the 1,200 employees involved were discontented working for a competitor and losing their stock options.<ref name="thirteen" /><ref>Template:Cite news</ref> This led to a protracted legal dispute regarding employee stock options, resulting in $74 million in settlements by 2005.<ref name="Mock2005" />
3GEdit
3G standards were expected to force prior TDMA carriers onto CDMA, in order to meet 3G bandwidth goals.<ref name="BlaxillEckardt2009" /><ref name="Drake(III.)2008">Template:Cite book</ref> The two largest GSM manufacturers, Nokia and Ericsson, advocated for a greater role for GSM,<ref name="TaplinWakui2006">Template:Cite book</ref> in order to negotiate lower royalty prices from Qualcomm.<ref name="Drake(III.)2008" /> In 1998, the European Telecommunications Standards Institute (ETSI) voted in support of the WCDMA standard, which relied less on Qualcomm's CDMA patents.<ref name="Association2010">Template:Cite book</ref> Qualcomm responded by refusing to license its intellectual property for the standard.<ref name="Drake(III.)2008" />
The Telecommunications Industry Association (TIA) and the Third Generation Partnership Program 2, advocated for a competing CDMA-2000 standard developed primarily by Qualcomm.<ref name="ChenGuizani2006">Template:Cite book</ref><ref name="Unhelkar2006">Template:Cite book</ref> American and European politicians advocated for the CDMA-2000 and WCDMA standards respectively.<ref name="Mock2005" /><ref name="Drake(III.)2008" /> The ITU said it would exclude Qualcomm's CDMA technology from the 3G standards entirely if a patent dispute over the technology with Ericsson was not resolved.<ref name="Mock2005" /><ref name="Lennon2007" /> The two reached an agreement out-of-court in 1999, one month before a deadline set by the ITU. Both companies agreed to cross-license their technology to each other<ref name="Lennon2007">Template:Cite book</ref>Template:RP and to work together on 3G standards.<ref>Template:Cite news</ref>
A compromise was eventually reached whereby the ITU would initially endorse three standards: CDMA2000 1X, WCDMA and TD-SCDMA.<ref name="Drake(III.)2008" /> Qualcomm agreed to license its CDMA patents for variants such as WCDMA.<ref name="Drake(III.)2008" /> There were 240 million CDMA 3G subscribers by 2004 and 143 carriers in 67 countries by 2005.<ref name="Chen2007" /> Qualcomm claimed to own 38 percent of WCDMA's essential patents, whereas European GSM interests sponsored a research paper alleging Qualcomm only owned 19 percent.<ref name="BlaxillEckardt2009" />
Qualcomm consolidated its interests in telecommunications carriers, such as Cricket Communications and Pegaso into a holding company, Leap Wireless, in 1998.<ref>Template:Cite news</ref><ref name="Steinbock2003" /> Leap was spun-off later that year<ref name="jkopys" /> and sold to AT&T in 2014.<ref name="jkopys">Template:Cite news</ref>
4GEdit
Qualcomm initially advocated for the CDMA-based Ultra Mobile Broadband (UMB) standard for fourth generation wireless networks.<ref name="Unhelkar2009">Template:Cite book</ref> UMB wasn't backwards compatible with prior CDMA networks and didn't operate as well in narrow bandwidths as the LTE (long-term evolution) standard. No cellular networks adopted UMB.<ref name="Cox2012">Template:Cite book</ref> Qualcomm halted development of UMB in 2005 and decided to support the LTE standard,<ref name="Korhonen2014">Template:Cite book</ref><ref>Template:Cite news</ref> even though it didn't rely as heavily on Qualcomm patents.<ref>Template:Cite news</ref> Then, Qualcomm purchased LTE-related patents through acquisitions.<ref name="Coll2013">Template:Cite book</ref> By 2012, Qualcomm held 81 seminal patents used in 4G LTE standards, or 12.46 percent.<ref name="Reed 2012">{{#invoke:citation/CS1|citation |CitationClass=web }}</ref>
Qualcomm also became more focused on using its intellectual property to manufacture semiconductors in a fabless manufacturing model.<ref>Template:Cite news</ref> A VLSI Technology Organization division was founded in 2004, followed by a DFX group in 2006, which did more of the manufacturing design in-house.<ref name="eetimesss">Template:Cite news</ref> Qualcomm announced it was developing the Scorpion central processing unit (CPU) for mobile devices in November 2005.<ref>Template:Cite news</ref><ref name="djabnf">Template:Cite news</ref> This was followed by the first shipments of the Snapdragon system-on-chip product, which includes a CPU, GPS, graphics processing unit, camera support and other software and semiconductors,<ref name="extreme">Template:Cite news</ref> in November 2007.<ref name="cnet">Template:Cite news</ref> The Gobi family of modems for portable devices was released in 2008.<ref name="giz announcement">Template:Cite news</ref><ref name="engadget announcement">{{#invoke:citation/CS1|citation |CitationClass=web }}</ref> Gobi modems were embedded in many laptop brands<ref>Template:Cite news</ref><ref>Template:Cite news</ref> and Snapdragon system on chips were embedded into most Android devices.<ref>Template:Cite news</ref>
Qualcomm won a government auction in India in 2010 for $1 billion in spectrum and licenses from which to offer broadband services. It formed four joint ventures with Indian holding companies for this purpose. A 49 percent stake in the holding companies was acquired by Bharti in May 2012 and the remaining was acquired in October 2012<ref>Template:Cite news</ref> by AT&T.<ref>Template:Cite news</ref>
5GEdit
According to Fortune Magazine, Qualcomm has been developing technologies for future 5G standards in three areas: radios that would use bandwidth from any network it has access to, creating larger ranges of spectrum by combining smaller pieces, and a set of services for Internet of things applications.<ref name="Higginbotham 2015">Template:Cite news</ref> Qualcomm's first 5G modem chip was announced in October 2016<ref name="Captain 2016">{{#invoke:citation/CS1|citation |CitationClass=web }}</ref> and a prototype was demonstrated in October 2017.<ref name="BBC News 2017">{{#invoke:citation/CS1|citation |CitationClass=web }}</ref> Qualcomm's first 5G antennas were announced in July 2018.<ref name="Smith 2018">{{#invoke:citation/CS1|citation |CitationClass=web }}</ref> As of 2018, Qualcomm had partnerships with 19 mobile device manufacturers and 18 carriers to commercialize 5G technology.<ref name="Horwitz 2018">{{#invoke:citation/CS1|citation |CitationClass=web }}</ref> By late 2019, several phones were being sold with Qualcomm's 5G technology incorporated.<ref name="Nellis 2019">{{#invoke:citation/CS1|citation |CitationClass=web }}</ref>
Software and other technologyEdit
Early softwareEdit
Qualcomm acquired an email application called Eudora in 1991.<ref name="merc">Template:Cite news</ref> By 1996, Eudora was installed on 63 percent of PCs.<ref>Template:Cite news</ref> Microsoft Outlook eclipsed Eudora, since it was provided for free by default on Windows-based machines.<ref name="aplip">Template:Cite news</ref> By 2003 Qualcomm's Eudora was the most popular alternative to Microsoft Outlook, but still had only a five percent share of the market.<ref name="alt">Template:Cite news</ref> Software development for Eudora was retired in 2006.<ref name="aplip" />
In 2001, Qualcomm introduced Brew, a smartphone app development service<ref name="whatisbrew">Template:Cite news</ref><ref name="Etoh2005" /><ref name="daghniouhd">Template:Cite newsTemplate:Dead link</ref> with APIs to access contacts, billing, app-stores, or multimedia on the phone.<ref name="Etoh2005">Template:Cite book</ref> South Korean carrier KTFreeTel was the first to adopt the Brew system in November 2001, followed by Verizon in March 2002<ref>Template:Cite news</ref> for its "Get it Now" program. There were 2.5 million Brew users by the end of 2002 and 73 million in 2003.<ref name="Chen2007" />
Other technologyEdit
In 2004, Qualcomm created a MediaFLO subsidiary to bring its FLO (forward link only) specification to market. Qualcomm built an $800 million MediaFLO network of cell towers to supplement carrier networks with one that is designed for multimedia.<ref name="yugdtsuobdajf">Template:Cite newsTemplate:Dead link</ref><ref>Template:Cite news</ref> In comparison to cellular towers that provide two-way communications with each cell phone individually, MediaFLO towers would broadcast multimedia content to mobile phones in a one-way broadcast.<ref name="dajobiurebv">Template:Cite news</ref><ref name="apdia">Template:Cite news</ref> Qualcomm also sold FLO-based semiconductors and licenses.<ref>Template:Cite news</ref><ref>Template:Cite news</ref>
Qualcomm created the FLO Forum standards group with 15 industry participants in July 2005.<ref>Template:Cite newsTemplate:Dead link</ref> Verizon was the first carrier to partner with MediaFlo in December 2005<ref name="apdia" /> for its Verizon Wireless' V Cast TV,<ref>Template:Cite news</ref> which was followed by the AT&T Mobile TV service a couple months later.<ref>Template:Cite news</ref><ref>Template:Cite news</ref> The MediaFlo service was launched on Super Bowl Sunday in 2007.<ref name="unique13">Template:Cite magazine</ref> Despite the interest the service got among carriers, it was unpopular among consumers.<ref name="unique13" /><ref name="gigaomyud" /><ref name="uniquename" /> The service required users to pay for a subscription and have phones that were equipped with special semiconductors.<ref name="gigaomyud">Template:Cite news</ref><ref name="uniquename" /> The service was discontinued in 2011 and its spectrum was sold to AT&T for $1.93 billion.<ref name="gigaomyud" /><ref name="uniquename">Template:Cite news</ref> Qualcomm rebooted the effort in 2013 with LTE Broadcast, which uses pre-existing cell towers to broadcast select content locally on a dedicated spectrum, such as during major sporting events.<ref name="gigaomyud" /><ref>Template:Cite news</ref>
Based on technology acquired from Iridigm in 2004 for $170 million,<ref name="cnn">{{#invoke:citation/CS1|citation |CitationClass=web }}</ref> Qualcomm began commercializing Mirasol displays in 2007, which was expanded into eight products in 2008.<ref>Template:Cite news</ref> Mirasol uses natural light shining on a screen to provide lighting for the display, rather a backlight, in order to reduce power consumption.<ref>Template:Cite newsTemplate:Dead linkTemplate:Cbignore</ref> The amount of space between the surface of the display and a mirror within a 10 micron-wide "interferometric modulator" determines the color of the reflected light.<ref>Template:Cite news</ref> Mirasol was eventually closed down after an attempt to revive it in 2013 in Toq watches.<ref name="Captain 2017">{{#invoke:citation/CS1|citation |CitationClass=web }}</ref>
In June 2011, Qualcomm introduced AllJoyn, a wireless standard for communicating between devices like cell phones, televisions, air-conditioners, and refrigerators.<ref name="alljoynnww">Template:Cite news</ref><ref name="oneilyady">Template:Cite news</ref><ref name="FitzekKatz2013">Template:Cite book</ref> The Alljoyn technology was donated to the Linux Foundation in December 2013. Qualcomm and the Linux Foundation then formed the Allseen Alliance to administer the standard<ref name="alljoynnww" /><ref>Template:Cite news</ref> and Qualcomm developed products that used the AllJoyn standard<ref>Template:Cite news</ref><ref>Template:Cite news</ref><ref>Template:Cite news</ref> In December 2011, Qualcomm formed a healthcare subsidiary called Qualcomm Life. Simultaneously, the subsidiary released a cloud-based service for managing clinical data called 2net and the Qualcomm Life Fund, which invests in wireless healthcare technology companies.<ref>Template:Cite news</ref><ref>Template:Cite newsTemplate:Dead link</ref> The subsidiary doubled its employee-count by acquiring HealthyCircles Inc., a healthcare IT company, the following May.<ref>Template:Cite news</ref> Qualcomm life was later sold to a private equity firm, Francisco Partners, in 2019.<ref name="MobiHealthNews 2019">{{#invoke:citation/CS1|citation |CitationClass=web }}</ref>
Developments since 2016Edit
In 2016, Qualcomm developed its first beta processor chip for servers and PCs called "Server Development Platform" and sent samples for testing.<ref name="dalihgeahrocin">Template:Cite news</ref> In January 2017, a second generation data center and PC server chip called Centriq 2400 was released.<ref name="dalihgeahrocin" /> PC Magazine said the release was "historic" for Qualcomm, because it was a new market segment for the company.<ref name="Shah 2016">{{#invoke:citation/CS1|citation |CitationClass=web }}</ref> Qualcomm also created a Qualcomm Datacenter Technologies subsidiary to focus on the PCs and servers market.<ref name="eWeek.com 2016">{{#invoke:citation/CS1|citation |CitationClass=web }}Template:Dead link</ref> In 2017, Qualcomm introduced embedded technology for 3D cameras intended for augmented reality apps,<ref name="Captain 2017b">Template:Cite news</ref> and also developed and demonstrated laptop processors.<ref>{{#invoke:citation/CS1|citation |CitationClass=web }}</ref>
In 2000, Qualcomm formed a joint venture with Ford called Wingcast, which created telematics equipment for cars, but was unsuccessful and closed down two years later.<ref>Template:Cite news</ref><ref>Template:Cite news</ref><ref>Template:Cite news</ref> Qualcomm acquired the wireless electric car charging company, HaloIPT, in November 2011<ref>Template:Cite news</ref> and later sold the company to WiTricity in February 2019.<ref name="Sawers 2019">{{#invoke:citation/CS1|citation |CitationClass=web }}</ref> Qualcomm also started introducing Snapdragon system-on-chips<ref>Template:Cite news</ref> and Gobi modems<ref>Template:Cite news</ref> and other software or semiconductor products for self-driving cars and modern in-car computers.<ref name="Velazco 2017">{{#invoke:citation/CS1|citation |CitationClass=web }}</ref><ref name="Condon 2017">{{#invoke:citation/CS1|citation |CitationClass=web }}</ref>
In 2020, Qualcomm hired Baidu veteran, Nan Zhou, to head Qualcomm's push into AI.<ref>{{#invoke:citation/CS1|citation |CitationClass=web }}</ref>
Patents and patent disputesEdit
In 2023, the World Intellectual Property Organization (WIPO)’s Annual PCT Review ranked Qualcomm's number of patent applications published under the PCT System as 3rd in the world, with 3,410 patent applications being published during 2023.<ref>{{#invoke:citation/CS1|citation |CitationClass=web }}</ref> In 2017, Qualcomm owned more than 130,000 current or pending patents,<ref name="Chafkin King 2017">{{#invoke:citation/CS1|citation |CitationClass=web }}</ref> an increase from the early 2000s when Qualcomm had more than 1,000 patents.<ref name="eight">Template:Cite news</ref><ref>Template:Cite news</ref> As the sole early investor in CDMA research and development, Qualcomm's patent portfolio contains much of the intellectual property that is essential to CDMA technologies.<ref name="Klemens2010" />
Since many of Qualcomm's patents are part of an industry standard, the company has agreed to license those patents under "fair, reasonable, and non-discriminatory" terms.<ref name="Pressman 2017" /> Qualcomm's royalties come out to about 5% or $30 per mobile device.<ref name="Chafkin King 2017" /> According to Fortune Magazine, this is about 5–10 times more than what is typically charged by other patent-holders.<ref name="Pressman 2017" /> Qualcomm says its patents are more expensive because they are more important and its pricing is within the range of common licensing practices.<ref name="Pressman 2017" /> However, competitors, clients, and regulators often allege Qualcomm charges unreasonable rates or engages in unfair competition for mandatory patents.<ref name="Delta2009">Template:Cite book</ref>
BroadcomEdit
In 2005, Broadcom and Qualcomm were unable to reach an agreement on cross-licensing their intellectual property,<ref>Template:Cite news</ref> and Broadcom sued Qualcomm alleging it was breaching ten Broadcom patents.<ref name="wsjwsjwsjjj">Template:Cite news</ref><ref name="Mei2012">Template:Cite book</ref> Broadcom asked the International Trade Commission to prohibit importing the affected technology.<ref name="wsjwsjwsjjj" /><ref>Template:Cite news</ref> A separate lawsuit alleged Qualcomm was threatening to withhold UMTS patent licenses against manufacturers that bought their semiconductors from competitors, in violation of the standards agreement.<ref>Template:Cite news</ref><ref name="Stern2005">Template:Cite journal</ref><ref>Template:Cite news</ref>
Qualcomm alleged Broadcom was using litigation as a negotiation tactic and that it would respond with its own lawsuits.<ref name="Stern2005" /><ref>Template:Cite news</ref> Qualcomm sued Broadcom, alleging it was using seven Qualcomm patents without permission.<ref>Template:Cite news</ref> By late 2006, more than 20 lawsuits had been filed between the two parties and both sides claimed to be winning.<ref name="bwuyda">Template:Cite newsTemplate:Dead linkTemplate:Cbignore</ref>
In September 2006, a New Jersey court judge ruled that Qualcomm's patent monopoly was an inherent aspect of creating industry standards and that Qualcomm's pricing practices were lawful.<ref name="bwuyda" /><ref name="Stern2006">Template:Cite journal</ref> In May 2007, a jury ordered Qualcomm to pay Broadcom $19.6 million for infringing on three Broadcom patents.<ref>Template:Cite news</ref> In June 2007, the ITC ruled that Qualcomm had infringed on at least one Broadcom patent and banned corresponding imports.<ref name="Mei2012" /><ref>Template:Cite news</ref> Qualcomm and Broadcom reached a settlement in April 2009, resulting in a cross-licensing agreement, a dismissal of all litigation and Qualcomm paying $891 million over four years.<ref name="julione">Template:Cite news</ref>
During the litigation, Qualcomm claimed it had never participated in the JVT standards-setting process.<ref name="handbook">Template:Cite book</ref>Template:RP However, an engineer's testimony led to discovery of 21 JVT-related emails Qualcomm lawyers had withheld from the court, and 200,000 pages of JVT-related documents.<ref name="BagleySavage2009" /> Qualcomm's lawyers said the evidence was accidentally overlooked, whereas the judge said it was gross misconduct.<ref name="BagleySavage2009" /><ref>Template:Cite news</ref><ref>Template:Cite news</ref> Qualcomm was fined $8.5 million for legal misconduct.<ref>Template:Cite news</ref> On appeal, the court held that Qualcomm could only enforce the related patents against non-JVT members, based on the agreements signed to participate in JVT.<ref name="handbook" /><ref name="BlockEpstein1995">Template:Cite book</ref>Template:RP
Nokia and Project StockholmEdit
Six large telecommunications companies<ref name="randommm">Template:Cite news</ref> led by Nokia<ref name="goodsource">Template:Cite newsTemplate:Dead linkTemplate:Cbignore</ref> filed a complaint against Qualcomm with the European Commission's antitrust division<ref name="goodsource" /> in October 2005.<ref>Template:Cite news</ref> They alleged Qualcomm was abusing its market position to charge unreasonable rates for its patents.<ref name="DodgsonGann2013">Template:Cite book</ref><ref name="Lundqvist2014" /> Qualcomm alleged the six companies were colluding together under the code name Project Stockholm in a legal strategy to negotiate lower rates.<ref>Template:Cite news</ref><ref>Template:Cite news</ref><ref name="battle">Template:Cite news</ref> These events led to a protracted legal dispute.<ref name="randommm" />
Qualcomm filed a series of patent-infringement lawsuits against Nokia in Europe, Asia, the US, and with the ITC.<ref name="post">Template:Cite news</ref><ref name="timeline" /> The parties initiated more than one dozen lawsuits against one another.<ref name="timeline">Template:Cite news</ref> Several companies filed antitrust complaints against Qualcomm with the Korean Fair Trade Commission,<ref>Template:Cite news</ref> who initiated an investigation into Qualcomm's practices in December 2006.<ref name="ten">Template:Cite news</ref> The dispute between Qualcomm and Nokia escalated, when their licensing agreement ended in April 2007.<ref name="nokia">Template:Cite news</ref>
In February 2008, the two parties agreed to halt any new litigation until an initial ruling is made on the first lawsuit in Delaware.<ref name="BagleySavage2009">Template:Cite book</ref><ref name="timeline" /> Nokia won three consecutive court rulings with the German Federal Patent Court, the High Court in the United Kingdom, and the International Trade Commission respectively. Each found that Nokia was not infringing on Qualcomm's patents.<ref name="goodsource" /><ref name="Lundqvist2014">Template:Cite book</ref><ref>Template:Cite newsTemplate:Dead linkTemplate:Cbignore</ref> In July 2008, Nokia and Qualcomm reached an out-of-court settlement that ended the dispute and created a 15-year cross-licensing agreement.<ref name="goodsource" />
Recent disputesEdit
ParkerVision filed a lawsuit against Qualcomm in July 2011 alleging that it infringed on seven ParkerVision patents related to converting electromagnetic radio signals to lower frequencies.<ref name="parker">Template:Cite news</ref> A Template:US$ jury verdict against Qualcomm was overturned by a judge.<ref>Template:Cite news</ref>
In November 2013, the China National Development and Reform Commission initiated an anti-trust investigation into Qualcomm's licensing division.<ref name="reutreur" /><ref name="wsjsj" /> The Securities and Exchange Commission also started an investigation into whether Qualcomm breached antibribery laws through its activities in China.<ref name="wsjsj">Template:Cite news</ref><ref>Template:Cite news</ref> The Chinese regulator raided Qualcomm's Chinese offices in August 2013.<ref name="reutersssst">Template:Cite news</ref> The dispute was settled in 2015 for $975 million.<ref name="Clark 2015">{{#invoke:citation/CS1|citation |CitationClass=web }}</ref>
In late 2016 The Korea Fair Trade Commission alleged Qualcomm abused a "dominant market position" to charge cell phone manufacturers excessive royalties for patents and limit sales to companies selling competing semiconductor products.<ref name="Fortune 2016hsj">Template:Cite news</ref> The regulator gave Qualcomm a fine of $854 million, which the company said it will appeal.<ref name="Fortune 2016hsj" /> Eventually, Qualcomm lost the case in Supreme Court of the Republic of Korea in 2023, causing to enact the fine in force.<ref name="The Joongang2023qcm">Template:Cite news</ref>
In April 2017, Qualcomm paid an Template:US$ settlement to BlackBerry as a refund for prepaid licensing fees.<ref name="Cao 2017">{{#invoke:citation/CS1|citation |CitationClass=web }}</ref>
In October 2017, Taiwan's Fair Trade Commission fined Qualcomm another Template:US$.<ref>{{#invoke:citation/CS1|citation |CitationClass=web }}</ref> In late 2018 Qualcomm paid a settlement to Taiwan for Template:US$ in fines and a promise to spend Template:US$ in the local Taiwan economy.<ref name="Mickle 2018">{{#invoke:citation/CS1|citation |CitationClass=web }}</ref><ref name="Lee 2018">{{#invoke:citation/CS1|citation |CitationClass=web }}</ref>
AppleEdit
In January 2017, the Federal Trade Commission (FTC) initiated an investigation into allegations that Qualcomm charged excessive royalties for patents that are "essential to industry standards".<ref>Template:Cite news</ref> That same year, Apple initiated a Template:US$ lawsuit against Qualcomm in the U.S. alleging Qualcomm overcharged for semiconductors and failed to pay Template:US$ in rebates.<ref>Template:Cite news</ref><ref>Template:Cite news</ref> Apple also filed lawsuits in China<ref name="Pressman 2017">{{#invoke:citation/CS1|citation |CitationClass=web }}</ref> and the United Kingdom.<ref name="adfljajdcpajdpfijaoiwec">{{#invoke:citation/CS1|citation |CitationClass=web }}</ref>
Apple alleged Qualcomm was engaging in unfair competition by selling industry-standard patents at a discount rate in exchange for an exclusivity agreement for its semiconductor products.<ref name="King McLaughlin Rosenblatt 2017">{{#invoke:citation/CS1|citation |CitationClass=web }}</ref> An FTC report reached similar conclusions.<ref name="King McLaughlin Rosenblatt 2017" /> Qualcomm filed counter-claims alleging Apple made false and misleading statements to induce regulators to sue Qualcomm.<ref name="Forbespatents">{{#invoke:citation/CS1|citation |CitationClass=web }}</ref> Qualcomm also sued Apple's suppliers for allegedly not paying Qualcomm's patent royalties, after Apple stopped reimbursing them for patent fees.<ref name="Forbespatents" /><ref name="Fortune 2017Apple">{{#invoke:citation/CS1|citation |CitationClass=web }}</ref> Qualcomm petitioned the International Trade Commission to prohibit imports of iPhones, on the premise that they contain stolen Qualcomm patents after Apple's suppliers stopped paying.<ref name="King Decker 2017">{{#invoke:citation/CS1|citation |CitationClass=web }}</ref>
In August 2017, the International Trade Commission responded to Qualcomm's complaints by starting an investigation of Apple's use of Qualcomm patents without royalties.<ref name="Heavey Nellis 2017">{{#invoke:citation/CS1|citation |CitationClass=web }}</ref> Qualcomm also filed suit against Apple in China for alleged patent infringement in October 2017.<ref>{{#invoke:citation/CS1|citation |CitationClass=web }}</ref> The following month, Apple counter-sued, alleging Qualcomm was using patented Apple technology in its Android components.<ref name="Nellis 2017">{{#invoke:citation/CS1|citation |CitationClass=web }}</ref>
In December 2018, Chinese<ref name="Nellis 2018">{{#invoke:citation/CS1|citation |CitationClass=web }}</ref> and German<ref name="Feiner 2018">{{#invoke:citation/CS1|citation |CitationClass=web }}</ref> courts held that Apple infringed on Qualcomm patents and banned sales of certain iPhones. Some patents were held to be invalid,<ref name="Bloomberg 2019">{{#invoke:citation/CS1|citation |CitationClass=web }}</ref> while others were infringed by Apple.<ref name="Nieva 2019">{{#invoke:citation/CS1|citation |CitationClass=web }}</ref>
In April 2019, Apple and Qualcomm reached an agreement to cease all litigation and sign a six-year licensing agreement.<ref name="daoijdaiew">{{#invoke:citation/CS1|citation |CitationClass=web }}</ref> The settlement included a one-time payment from Apple of about Template:Val.<ref name="daiuowbavinadsewmgn">{{#invoke:citation/CS1|citation |CitationClass=web }}</ref> Terms of the six-year licensing agreement were not disclosed, but the licensing fees were expected to increase revenues by Template:US$ per-share.<ref name="daoijdaiew" /><ref name="daiuowbavinadsewmgn" />
In January 2018, the European Competition Commission fined Qualcomm Template:US$ for an arrangement to use Qualcomm chips exclusively in Apple's mobile products.<ref name="Olson 2018">{{#invoke:citation/CS1|citation |CitationClass=web }}</ref><ref name="danonqveroidnsiun">{{#invoke:citation/CS1|citation |CitationClass=web }}</ref><ref name="Drozdiak Greenwald 2018">{{#invoke:citation/CS1|citation |CitationClass=web }}</ref> Qualcomm appealed the decision,<ref name="Olson 2018" /><ref name="danonqveroidnsiun" /><ref name="Drozdiak Greenwald 2018" /> and in June 2022, Qualcomm announced the company had won its appeal of the European Union antitrust fine. The appeal had highlighted that Apple as a company had no technical alternative other than to use Qualcomm's LTE chipsets.<ref>{{#invoke:citation/CS1|citation |CitationClass=web }}</ref>
Federal Trade CommissionEdit
Stemming from the investigation that led to the Apple lawsuit actions, the FTC filed suit against Qualcomm in 2017 alleging it engaged in antitrust behavior due to its monopoly on wireless broadband technology. The complaints filed by the FTC included that Qualcomm charged "disproportionately high" patent royalty rates to phone manufacturers and refused to sell them broadband chips if they did not license the patents, a policy referred to as "no license, no chips", that Qualcomm refused to license the patent to other chip manufacturers as to maintain their monopoly, and that Qualcomm purposely offered Apple a lower license cost to use their chips exclusively, locking other competitors as well as wireless service providers out of Apple's lucrative market.<ref>{{#invoke:citation/CS1|citation |CitationClass=web }}</ref> The trial starting in January 2019, heard by Judge Lucy Koh of the federal Northern District Court that also oversaw the Apple case. Judge Koh ruled in May 2019 against Qualcomm, asserting that Qualcomm's practices did violate antitrust. As part of the ruling, Qualcomm was forced to stop its "no license, no chips" bundling with phone manufacturers, and was required to license its patents to other chip manufacturers. As Qualcomm had expressed its intent to appeal, a panel of judges on the 9th circuit of appeals stayed the orders pending the litigation action.<ref>{{#invoke:citation/CS1|citation |CitationClass=web }}</ref>
Qualcomm appealed to the Ninth Circuit, which reversed the decision in August 2020. The Ninth Circuit determined that Judge Koh's decision strayed beyond the scope of antitrust law and that whether Qualcomm's patent licensing may be considered reasonable and non-discriminatory licensing does not fall within the scope of antitrust law, but rather is a matter of contract and patent law. The court concluded that the FTC failed to meet its burden of proof and that Qualcomm's business practices were better characterized as "hypercompetitive" rather than "anticompetitive".<ref>{{#invoke:citation/CS1|citation |CitationClass=web }}</ref><ref>{{#invoke:citation/CS1|citation |CitationClass=web }}</ref><ref>{{#invoke:citation/CS1|citation |CitationClass=web }}</ref>
Edit
Qualcomm develops software, semiconductor designs, patented intellectual property, development tools and services, but does not manufacture physical products like phones or infrastructure equipment.<ref name="Kodama2012">Template:Cite book</ref> The company's revenues are derived from licensing fees for use of its intellectual property, sales of semiconductor products that are based on its designs, and from other wireless hardware, software or services.<ref name="primary">Template:Citation</ref>
Qualcomm divides its business into three categories:<ref name="primary2">{{#invoke:citation/CS1|citation |CitationClass=web }}</ref>
- QCT (Qualcomm CDMA Technologies): CDMA wireless products; 80% of revenue
- QTL (Qualcomm Technology Licensing): Licensing; 19% of revenue
- QSI (Qualcomm strategic initiatives): Investing in other tech companies; less than 1% of revenue
Qualcomm is a predominantly fabless provider of semiconductor products for wireless communications and data transfer in portable devices.<ref name="newceo">Template:Cite news</ref> According to the analyst firm Strategy Analytics, Qualcomm has a 39 percent market-share for smartphone application processors and a 50 percent market-share of baseband processors.<ref name="FierceWireless 2016">{{#invoke:citation/CS1|citation |CitationClass=web }}</ref> Its share of the market for application processors on tablets is 18 percent.<ref>Template:Cite news</ref> According to analyst firm ABI Research, Qualcomm has a 65 percent market-share in LTE baseband.<ref name="Mott 2017">{{#invoke:citation/CS1|citation |CitationClass=web }}</ref> Qualcomm also provides licenses to use its patents, many of which are critical to the CDMA2000, TD-SCDMA and WCDMA wireless standards.<ref name="Asif2011">Template:Cite book</ref> The company is estimated to earn $20 for every smartphone sold.<ref name="Cannady2013">Template:Cite book</ref>Template:RP
Qualcomm is the largest public company in San Diego.<ref>Template:Cite news</ref><ref name="six">Template:Citation</ref> It has a philanthropic arm called The Qualcomm Foundation.<ref>Template:Cite news</ref><ref>Template:Cite news</ref> A January 2013 lawsuit resulted in Qualcomm voluntarily adopting a policy of disclosing its political contributions. According to The New York Times, Qualcomm's new disclosure policy was praised by transparency advocates.<ref name="randomname">Template:Cite news</ref><ref>Template:Cite news</ref>
See alsoEdit
ReferencesEdit
External linksEdit
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