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Tips for Using This Template Greater China Market Update April 24, 2012 Xiang Wang SVP & Pres, QC Greater China April 2012 China Snapshot IMF forecast China economic growth for 2012 is 8.25% China has three mobile telecom carriers, China Telecom (CT), China Unicom (CU) and China Mobile (CMCC) with total subscribers of 1.02 billions by Q1 2012. Qualcomm started business in China since end of 90s, with 4 offices located in Beijing, Shanghai, Shenzhen and Xi’an. China continues to be Qualcomm’s #1 revenue contributor in fiscal 2011. 80+ Chinese partners Over 15x Smartphone Unit Sales Growth in 2011 #1 Supplier for 3G Modems and APs And more… Source: MIIT, IMF, Qualcomm data, Gartner, iSupply, Strategy Analytics 2 China Subscriber Milestone: 1 Billion+ by end of Q1 2012 1200 75.5% (in Mil.) 72.4% 62.8% 1000 Total sub: 1,018.8M 152 128 54.4% 800 47 90 99 EVDO+WCDMA+TD-SCDMA* 46.9% 78 12 41.4% 56 CDMA 1X 600 34.9% 28 30.1% GSM 25.8% 20.8% 400 768 717 758 16.0% 667 591 Mobile Penetration 200 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Q1 2012 Source: MIIT, company data * China Telecom data is calculated by MIIT and the other two operators’ published data 3 Global Smartphone Focus Shifting To China Smartphone shipment by region 250 In million units 234 China 215 N.America 200 192 W. Europe 168 Japan 137 150 Asia (excl. CN, JP, IDA) E.Europe 100 LATAM MEA India 50 0 2008 2009 2010 2011 2012F 2013F 2014F 2015F 2016F Source: IDC Support China Telecom’s Eco-system & Device Variety HUAWEI Samsung HUAWEI Samsung C8650 SCH-i509 C8650+ ZTE-C N760 SCH-E329i Coolpad Lenovo ZTE-C N880S Coolpad 5820 Coolpad 5855 5860 A390e Top ten hot sell EVDO phones as of Feb., most are by Chinese Qualcomm and CT jointly host major industry events to OEMs. encourage more OEMs to make EVDO smartphones. Source: Sino MR 5 Key Partner in CU’s 1,000yuan Smartphone Promotion China Unicom RMB1,000 smartphone strategy grand launch. Five out of the eight use Qualcomm Snapdragon S1 processors. 5 Phillips Hisence CoolPad HuaweiU ZTE 8 W635 SH-U8 7260 8818 V889D Supports CMCC’ Network Evolution Support MIIT/CMCC TD-LTE large scale trials Ph2 & CMCC pre-commercial trail Qualcomm CEO Dr. Paul Jacobs speaks in GTI (Global TD- LTE Initiative) Summit to support CMCC as leading technology and chipset company. 7 Build Strategic Partnership with #1 Retailer in China Qualcomm and Gome announced strategic partnership on Snapdragon smartphone promotion on Apr. 9th. Gome signed 12 million units of Snapdragon-enabled smartphone procurement contracts with handset vendors. 8 Qualcomm Invests in Snapdragon Brand Snapdragon has got a Chinese name – 骁龙 9 Snapdragon Enables Customer to Expand Device Portfolio Xiaomi Mi-ONE Lenovo K91 Huawei MediaPad 10 QRD Helps Customer To Enhance Product Go-To-Market QRD Shanghai Design Center was established in FEB 2010 Team beginning fourth-generation QRD devices Collaboration and sharing amongst multiple Qualcomm design centers (ie. San Diego, Hyderabad, Bangalore, etc.) Extensive team with industry leading OEM experience 11 For more information on Qualcomm, visit us at: www.qualcomm.com www.qualcomm.com/blog ©2012 Qualcomm Incorporated. All rights reserved. Qualcomm is registered trademark of Qualcomm Incorporated. All the trademarks or brands in this document are registered by their respective owner. QUALCOMM Incorporated, 5775 Morehouse Drive, San Diego, CA 92121-1714 India Update Avneesh Agrawal SVP & Pres, QC India & S. Asia April 2012 India: Huge Opportunity for Mobile Broadband & Computing 1.2 Billion population 665M active mobile subscribers 3rd largest internet market with 120M subscribers 184Mu mobile handsets shipped in 2011 Smartphone volumes nearly doubling every year Low PC penetration: 4% Low fixed broadband penetration: 1.1% Source: World Bank, CIA World Fact Book, TRAI, IDC, MAIT 14 India: Co-existence of 3G HSPA, EV-DO & LTE 3G HSPA EV-DO LTE . All 3G operators have . Rev B launched by MTS and . Commercial LTE TDD launched HSPA networks Tata network launched by Airtel . Networks now available in . Rev-A in 800 towns with multi-mode dongle 333+ cities across India based on MDM 9x00 Source: Public statements by operators, Wireless Intelligence Dec ‘11 15 Active Subscriber Market Share: 2011 BSNL CONNECT MTNL 0.83% 0.13% 3.40% TATA 4.50% RELIANCE 10.53% MTS 11.01% BSNL AIRTEL VODAFONE MTNL 21% 27.19% 16% 1% VODAFONE RELIANCE AIRCEL 21.58% TATA 16% AIRCEL 54.69% 29.93% 5.82% AIRTEL 22% BSNL 8.43% VIDEOCON 0.42% TATA IDEA IDEA STEL 4% 13% 0.18% 17.01% MTNL ETISALAT 0.33% 0.07% UNINOR LOOP RELIANCE 3.71% 0.22% 7% GSM + 3G HSPA CDMA + EVDO 3G HSPA Operator Subs (Mn) Operator Subs (Mn) Operator Subs (Mn) AIRTEL 158.12 RELIANCE 35.70 AIRTEL 9.2 VODAFONE 125.46 TATA 19.53 BSNL 5.5 IDEA 98.91 MTS 7.18 AIRCEL 2.2 RELIANCE 61.25 BSNL 2.22 VODAFONE 4.5 BSNL 49 CONNECT 0.54 IDEA 2.3 AIRCEL 33.84 MTNL 0.08 RELIANCE 3.9 TATA 26.16 TATA 1.3 UNINOR 21.56 MTNL 0.96 VIDEOCON 2.44 MTNL 1.91 LOOP 1.29 STEL 1.06 ETISALAT 0.42 Total 65.27 Total 29.9 Total 581.48 Source: Active Subscriber Base; Public statements, TRAI. 3G stats from Wireless Intelligence 16 India Handset Market Trends 200 185 187 182 180 167 152 160 144 140 120 112 GSM 100 82 3G HSPA 80 LTE 60 51 40 31 13 16 20 7 4 7 0 2010 2011 2012 2013 2014 2015 Smartphone Volume (Mn) 90 79 80 70 60 55 50 40 35 30 21 20 11 Smartphone 6 10 2 Volume (Mn) 0 2009 2010 2011 2012 2013 2014 2015 Source: IDC, Q3 2011 17 The Rise of Mobile Broadband in India 120M 46M 40M 13.3M 29.9M 4.4M 11M 10M Internet Users Facebook Mobile Internet Fixed 3G HSPA Laptops Shipped Smartphones Users transact Users Broadband Subscribers in 2011 Users Subscribers Shipped in 2011 online Source: Wireless Intelligence, TRAI, The Mobile Indian, Press Reports, Facebook & Cybermedia Research Mobile: The Only Way to Drive Computing & Broadband 12 11 11 Desktop PCs 10 10 8 Laptops 7 6 7 6 6 Total PC 5 4 4 4 Units (M) Smartphones 2 2 2 0 2009 2010 2011 35 29.98 30 25 22.22 3G HSPA 20 14.7 15 11.9 12.4 12.8 13.3 9 Wired 10 7.7 Broadband 4.5 Subscribers (M) 5 0 Dec '10 Mar '11 Jun '11 Sep '11 Dec '11 Source: IDC, MAIT, Wireless Intelligence 19 Smartphone: The First Computer For Many Indians Also the First Camera, MP3 Player, Gaming Device… Cost and Complexity of use: Scale and Intuitive UI: Conventional PCs Mobile Devices Vodafone Smart LG Optimus ME Nokia Lumia 710 Samsung Omnia W Sony Xperia Ray HTC EVO 3D Snapdragon S1 Snapdragon S1 Snapdragon S2 Snapdragon S2 Snapdragon S2 Snapdragon S3 US$ 100 US$ 170 US$ 320 US$ 400 US$ 380 US$ 720 Source: Company announcements, Press Reports; Exchange rate used 1 US$ = 50 INR 20 Affordable 3G Smartphones : A Huge Opportunity Handset Market (2011) 15Mu 184Mu 100% 2% 2% 7% 90% 23% 80% 66Mu 36% 70% 17% 60% 50% 30% 40% 30% 54% 20% 28% 4Mu 10% 0% 2% 3G HSPA Overall US$ <$50 $50-$100 $100-$200 $200-$300 >$300 Source: IDC CY2011 21 Broadband Computing is Transformative PHYSICAL DIGITAL ROADS BROADBAND HIGHWAY HOSPITALS M-Health SCHOOLS M-Education BANKS M-COMMERCE GOVERNANCE M-GOVERNANCE 22 Opportunities for 3G in Education Shortage of 400,000 teachers driving the need for technology intervention Only 15% of 18-24yrs olds in college in India Strong government push to provide broadband connectivity to villages, and tablets to students Companies enabling digital classrooms and content Total number of schools: ~1M Students Enrolled: ~200M Large Opportunity for Mass Market 3G Smartphones & Tablets in Industry Verticals Education Health Retail Media & Entertainment 23 India Ecosystem: Driving Affordability And Local Needs Large Domestic Market Global Aspirations Vibrant Software Ecosystem Large Engineering Talent Increasing Internet Population Rise of Mobile Broadband QRD 24 Drive Computing & Connectivity for a Billion Indians Affordable Smartphones and Tablets Enabling LTE Multi-mode Develop India Ecosystem Opportunities in Industry Verticals: Education, Healthcare, eCommerce 25 Thank you For more information on Qualcomm, visit us at: www.qualcomm.com & www.qualcomm.com/blog Follow us on: Qualcomm, Snapdragon, and Gobi are trademarks of Qualcomm Incorporated, registered in the United States and in other countries. Mirasol is a trademark of Qualcomm Mems Technologies, Inc., registered in the United States and in other countries. Atheros is a trademark of Qualcomm Atheros, Inc., registered in the United States and in other countries. 2Net is a trademark of Qualcomm Incorporated. Other product and brand names may be trademarks or registered trademarks of their respective owners.. QUALCOMM Incorporated, 5775 Morehouse Drive, San Diego, CA 92121-1714 Japan Update Subtitle Placeholder Takayuki Nozaki Sr Dir, Business Development April 2012 More Than a Decade of Partnership in Japan 3G/LTE Subscribers : 127.9 Million (100.2% Penetration) 140,000 120,000 eAccess WCDMA SoftBank Mobile WCDMA 100,000 KDDI CDMA2000 NTT DOCOMO WCDMA 80,000 NTT DOCOMO LTE WCP AXGP (TDD-LTE) Unit : 1,000 : Unit 60,000 40,000 20,000 0 Oct/01 Jul/02 Apr/03 Jan/04 Oct/04 Jul/05 Apr/06 Jan/07 Oct/07 Jul/08 Apr/09 Jan/10 Oct/10 Jul/11 Source: TCA (Telecommunications Carriers Association) 28 Smartphone is Rapidly Increasing Smartphone Sales in FY2010 and FY2011 FY2010 FY2011 Projection (Apr.
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