1. 2001 ANNUAL REPORT
>>

2. p01
QUALCOMM is the engine for advances in the wireless industry
QUALCOMM employees innovated and commercialized a revolutionary wireless
communications technology called Code Division Multiple Access (CDMA). This
technology spreads digital radio signals across the spectrum in a unique way that
allows multiple users to coexist in the same frequency without time sharing. The
benefits of this innovation are powerful.
CDMA Subscriber Growth History
(IN MILLIONS)
CDMA enables wireless networks to greatly increase their capacity and broaden their
105.0
coverage areas. Users benefit from higher quality transmissions with fewer dropped
calls, improved voice quality and enhanced security. The new generation of this tech-
71.0
nology, called third generation or 3G, is delivering on the promise of the wireless
Internet by making always-on, high-speed data both accessible and economical.
41.1
Since its commercial introduction in 1995, QUALCOMM’s patented CDMA technology has
16.0
gained worldwide recognition and has become the engine for advances in the wireless
4.2
industry.
LESS THAN 1M
95 96 97 98 99 00 01
More than 100 million subscribers
as of September 2001
(Source: CDMA Development Group)
>
We’ve opened the door to the next
generation of wireless communications
This year, the third generation of wire- coming online in the United States, media, games and streaming
less communications became a reality. Brazil, Japan, Eastern Europe and New video. Color screen handsets are hot
It’s here, and QUALCOMM is enabling Zealand and many more deployments items. All this means new opportunities
it. Using first-to-market 3G technology are being planned around the world. A for application developers, equipment
(called CDMA2000 1X), wireless operators limited deployment of wideband CDMA manufacturers and wireless service
in South Korea are now offering com- (WCDMA) has been fielded by NTT providers. The next generation has
mercial high-quality voice and high-speed DoCoMo in Japan. arrived. The wireless Internet is being
data services to more than two million unleashed. QUALCOMM’s vision and
Attractive 3G products and services are
people. As this report goes to press, enabling technology are driving it. The
here now, including position location
additional CDMA2000 1X networks are door is open to a whole new world.
with downloadable local maps, multi-

3. QUALCOMM Incorporated
is a global leader in developing, delivering and enabling
innovative digital wireless communications products and
services based on the Company’s patented CDMA technology.
www.qualcomm.com
QUALCOMM Technology
QUALCOMM CDMA
Technologies Licensing
QCT QTL
QCT is the world’s leading QUALCOMM owns patents
developer and supplier of that are essential to all CDMA
CDMA chipset solutions wireless standards. To date,
used in network infrastructure equipment, QUALCOMM has more than 1,900 U.S.
handsets and other wireless devices. patents and patent applications applicable
Among the features of the new generation to CDMA and other technologies. Through
of QCT products is gpsOne™ wireless posi-
, the efforts of QTL, the Company has licensed
tion location technology facilitated by its essential CDMA patent portfolio to more
SnapTrack®, a wholly owned subsidiary than 100 telecom equipment and consumer
of QUALCOMM. QCT provides products, electronics manufacturers worldwide.
software and services to the world’s
leading CDMA manufacturers.

4. Headquartered in San Diego, California,
Business areas include:
QUALCOMM employs 6,500 people in
CDMA technology licensing
offices at 40 locations in the United States
CDMA chipsets and system
and around the world.
software solutions
The BREW wireless
application platform QUALCOMM works closely with manufac-
Satellite-based and terrestrial turers and wireless service providers
fleet management solutions through strategic investments, joint
Highly secure CDMA handsets ventures and partnerships to promote
and deployment systems for the the benefits of CDMA technology and to
United States government and further evolve new technologies and
homeland security services worldwide.
Digital Cinema products
and technologies
QUALCOMM is included in the S&P 500 Index and is a 2001 FORTUNE 500® Company traded on
QCOM
The Nasdaq Stock Market® under the ticker symbol QCOM.
>>
QUALCOMM Internet Services QUALCOMM Wireless QUALCOMM Digital Media
QIS was formed to accelerate QDM develops technologies to
Business Solutions
QIS QWBS QDM
the emergence of a genuinely QUALCOMM introduced its support the processing, trans-
useful wireless Internet, first wireless solution in 1988. mission and management of
building on QUALCOMM’s new Originally developed for content for a variety of media
Binary Runtime Environment for Wireless™ the long-haul trucking industry, the applications, including delivery of digitized
OmniTRACS® and OmniExpress® systems
(BREW™) applications platform. The BREW motion pictures (“Digital Cinema”) and
platform enables hardware manufacturers now provide mobile communications, position highly secure, wireless products for the
and software developers to quickly create location and fleet management solutions U.S. government. QUALCOMM has applied
new products and applications. Wireless for over 400,000 vehicles in 32 countries. its expertise in image compression, secu-
service providers then generate added The QWBS Network Management Center rity, digital communications and network
revenues through new data offerings. processes more than seven million trans- system integration to develop an end-to-
Consumers benefit by being able to down- actions per day, making it one of the end Digital Cinema delivery and playback
load and run exciting new applications on world’s largest wireless data networks. system. Technicolor Digital Cinema, the
their wireless devices. joint venture between QUALCOMM and
Technicolor®, has launched the commercial
rollout of this system in the United States.

5. p02
TO O U R S TO C K H O L D E R S :
>>
2001 was a positive year for
CDMA and for our Company
Despite a slowdown in the world economy, QUALCOMM Commercially Deployed and Miles Ahead
and our CDMA licensees this year entered major new markets, QUALCOMM intends to remain the engine for advances in
grew in existing markets and introduced breakthrough products the wireless industry. With people everywhere relying more and
™
including CDMA2000 1X, the Wireless Internet Launchpad and more on mobile communications for business and personal
the BREW platform. It was a period of slower growth for older and communications including entertainment, mobile commerce,
non-CDMA wireless technologies. information, safety and education, we are constantly innovating
to expand and improve the “user experience.” We continue to
Our business strategy is based on rapid innovation
work closely with CDMA operators, supporting their priorities
and careful investment to spur the adoption of CDMA wireless
in a timely and predictable fashion while driving down costs to
technology worldwide through clear competitive advantage.
ensure them an attractive and profitable business.
Our intellectual property portfolio is an essential ingredient in
all CDMA-based network infrastructure equipment, and wireless A major milestone on our journey took place this year
handsets and devices. We build stockholder value by generating when third-generation (3G) CDMA wireless technology became
revenues through the licensing of our CDMA technology and a reality. Nationwide 3G networks based on QUALCOMM’s
providing expert assistance, by supplying “chipsets” (integrated CDMA2000 1X technology officially opened for business in South
circuits, system software and support), which incorporate ever Korea, with commercial launches by multiple carriers rapidly
more attractive features for early-to-market, cost-effective attracting millions of subscribers. Sprint, Verizon Wireless and
CDMA products and by enabling wireless software applications other carriers are rolling out nationwide CDMA2000 1X networks
through the BREW platform. in the United States, launching with an exciting array of hand-
sets and applications. cdmaOne™ operators worldwide are ra-
With CDMA now the chosen technology for third-
pidly evolving their networks to 3G CDMA2000 1X. CDMA hand-
generation wireless voice and Internet access, QUALCOMM
set production is quickly shifting to CDMA2000 1X, based on
Technology Licensing (QTL) this year achieved record revenues
pin-compatible QUALCOMM chipsets. This third generation of
and earnings. We now have over 100 CDMA licensees with
wireless technology is now opening the door to a vast array of
more than 50 companies licensed for WCDMA and TD-SCDMA.
features and services while unleashing the true power of wire
Under the leadership of Don Schrock, QUALCOMM CDMA
less Internet access.
Technologies (QCT) this year raised the competitive bar further
in the development and introduction of new families of chips Wireless service providers everywhere are planning
while maintaining growth in chip sales despite the generally the evolution or replacement of second-generation systems by
down market. QCT has now shipped a cumulative total of third-generation networks, either CDMA2000 1X in existing and
over 525 million chips. new spectrum or WCDMA in new spectrum. We actively support
both forms of CDMA but believe that CDMA2000 1X is not only

6. p03
Dr. Irwin Mark Jacobs
Chairman of the Board and
Chief Executive Officer
first-to-market, but also the most powerful and cost-effective handsets for the network. We continue to provide extensive
choice. In support of all CDMA, we have formed a global technical support for the network deployment and are working
business development organization that integrates all of our closely with Chinese manufacturers.
international efforts. Headed by Jeff Jacobs, this organization
The government of India is also dedicated to providing
is focused on driving worldwide market growth for CDMA.
low-cost communications nationwide. This year, wireless local
China Deployments Moving Ahead As part of this loop operators were authorized to provide limited mobility,
globalization effort, we have been particularly focused on two allowing mobile services within extensive urban areas, and a
markets with sizable growth potential—China and India. We number of wireless local loop licenses were awarded. CDMA
are assisting wireless service providers in both of these is, of course, the technology of choice. Plans are underway for
markets as they seek to deploy and optimize networks for CDMA base stations across most of India to be connected with
the lowest cost. fiber links, making wireless voice and data communications
accessible, even in small villages. The Indian markets repre-
In July of this year, China surpassed the United States
sent future growth opportunity for our Company. As with China
and became the world’s largest wireless market with over
and other emerging markets around the world, QUALCOMM is
120 million subscribers. The legacy cellular networks there are
well positioned to benefit from the growing migration to CDMA
based on the older GSM (Global System for Mobile communica-
wireless technology.
tion) standard. However, China Unicom awarded approximately
$1.5 billion in contracts and has now deployed a first phase Content Delivery Made Affordable In addition to
nationwide cdmaOne network with capacity for 15 million driving early global implementation of CDMA2000 1X networks
subscribers in over 200 cities. Further, China Unicom has and developing WCDMA, we are working to commercialize our
announced a second phase, including upgrades to CDMA2000 1X, high data rate technology solution, standardized as CDMA2000
to accommodate an additional 20 million subscribers in 2002, 1xEV-DO (Data Optimized). The architecture for this data-
followed by a third phase supporting an additional 15 million optimized technology enables very high-speed Internet access,
subscribers by 2003. with burst rates of up to 2.4 Mbps. Wireless communications
and the Internet are two of the most important inventions of
QUALCOMM has granted worldwide subscriber and
our time. Joined together and augmented by BREW applica-
infrastructure licenses to a number of Chinese manufacturers.
tions, these technologies have the power to improve our lives
Shenzhen Zhongxing Telecom Co. (ZTE) received a $120 million
in new and meaningful ways. Both CDMA2000 1X and 1xEV-DO
first phase infrastructure contract to build CDMA networks
support “always on” high data rate secure connections. The
serving 1.1 million subscribers in China’s western provinces.
door has opened to fast and practical access to e-mail, personal
So far, 19 Chinese firms have been approved to produce CDMA
information manager (PIM) functions, web browsing,

7. p04
Dr. Paul E. Jacobs Kimberly M. Koro Donald E. Schrock Chris A. Wolfe
Executive Vice President and Senior Vice President and Executive Vice President and Senior Vice President and
Group President, QUALCOMM Wireless President, QUALCOMM Group President, QUALCOMM President, QUALCOMM
and Internet Group Digital Media CDMA Technologies Group Wireless Business Solutions
e-commerce, position location and navigation and multimedia, Another revolutionary technology debut this fiscal
with an ever-increasing menu of applications from developers year was our gpsOne position location solution. In response
worldwide to be selected by subscribers and downloaded to the to the FCC mandate, QUALCOMM and SnapTrack have been
phone using the BREW platform. working for several years on an Enhanced 911 (E911) solution
that integrates position location capability into the chips that
Constantly Driving More Advances As detailed in
drive wireless handsets and devices. Called gpsOne, this tech-
the “Technology Roadmap” beginning on page 8 of this report,
nology enables wireless service operators to provide police and
QUALCOMM’s CDMA chipsets embody the most advanced
other public safety officials the ability to locate wireless callers
3G CDMA technologies, including CDMA2000 1X, CDMA2000
in emergency situations. gpsOne provides significant cost,
1xEV-DO and WCDMA modes. Under the leadership of Steve
time-to-market, and performance advantages, and has been
Altman, the QUALCOMM Technology Licensing business
adopted by CDMA carriers around the world.
demonstrated our ability to earn royalties on all modes of
CDMA by successfully negotiating over 50 licensing agreements Motivated by the tragic events of September 11, the
with manufacturers of WCDMA and TD-SCDMA products. A key FCC has been asked to tighten requirements to include the
milestone this year was the signing of a new multi-million ability to locate wireless callers inside large structures, including
dollar agreement with Nokia, expanding the terms of our existing subway stations, office buildings or schools. Our technology
subscriber cross-licensing agreement and adding a new already works wherever cellular calls can be received and/or
infrastructure equipment license. Nokia is the world’s leading GPS satellites viewed and generally exceeds the FCC accuracy
handset supplier and we look forward to working with them in requirement by directing emergency service workers within 10
the effort to bring new, global 3G wireless solutions to market. to 30 meters of the caller.
Given the large installed base of GSM and to help the In 2001, gpsOne was deployed in Japan with great
migration of GSM networks to 3G CDMA, we are committed to success and in October Sprint PCS began selling phones
delivering multi-mode, multi-band chipsets supporting one containing chips with this technology in the United States.
or more flavors of CDMA together with GSM/GPRS. These Other wireless service providers are rapidly coming online.
multi-mode, multi-band chips will enable “world phones” The solution is technology-agnostic and works on all types of
and other wireless devices to provide truly global roaming wireless networks. To demonstrate, we conducted successful
and ubiquitous interoperability without user intervention. tests over GSM networks in Paris, Bonn, London and other
locations this year, which included cross-border roaming.
A breakthrough initiative in QCT this year was
the development of radioOne™ architecture. This innovation In April, a security company initiated gpsOne-
eliminates the need for intermediate frequency conversion, enabled service over KDDI’s cellular system in Japan and
saving cost, size and power by allowing manufactures to design quickly received 70,000 orders. In the first few days, the
multi-band wireless devices with fewer parts, smaller form service was able to locate a little girl lost in a large park in
factors and improved talk and standby times. We plan to Osaka. This promising technology has also been deployed
introduce radioOne architecture in our 3G MSM6000 family over NTT DoCoMo’s PDC cellular network in Japan.
of chipsets in 2002.

8. p05
Scott J. Becker
Jeffrey A. Jacobs Peggy L. Johnson Steven R. Altman Anthony S. Thornley
Senior Vice President and
Senior Vice President and Senior Vice President and Executive Vice President Executive Vice President,
General Manager, QUALCOMM
President, Global Development President, QUALCOMM and President, QUALCOMM Chief Operating Officer
Wireless Systems
Internet Services Technology Licensing and Chief Financial Officer
applications. Ultimately, the growing popularity of wireless data
Cool Data and Multimedia Applications
services will fuel added demand for CDMA, and for higher-end
QUALCOMM is driving the convergence of wireless access
devices that take advantage of its ever-increasing capabilities.
and data applications on several levels. At the chipset level,
This growth cycle is key to QUALCOMM’s continued success.
QUALCOMM’s Wireless Internet Launchpad suite offers many
integrated capabilities for position location, multimedia, stor-
Future growth for our Company is also fueled by
age, connectivity and user interface functions. To leverage
investments in research, development and strategic entrepre-
these features, our QUALCOMM Internet Services business,
neurial activities. As the recognized expert in CDMA, we play
headed by Peggy Johnson, developed the BREW platform.
a vital role in creating new industry standards that help move
QIS, which was launched this year, became part of the new
the technology forward. We incorporate these standards into a
QUALCOMM Wireless and Internet Group under the direction
range of CDMA chipsets and software. To foster the develop-
of Paul Jacobs.
ment of compelling new products and services, we invest our
financial and intellectual capital into promising early stage
The BREW initiative provides developers with a stan-
companies and joint ventures. We also make strategic invest-
dardized platform that allows rapid development of applications
ments in carriers in places like North America, Brazil, South
that are downloadable into BREW-enabled handsets and devices.
Korea, Australia and elsewhere around the world. As part of
The applications they create are distributed with QUALCOMM’s
that continuing effort to expedite deployment of CDMA, last
assistance to the wireless service providers who can benefit by
year we formed QUALCOMM Ventures with a plan to invest up
expansion and differentiation of their services. Consumers
to $500 million over a four-year period.
benefit by having instant access to easily downloadable applica-
tions such as games, music players, “nanny cams,” real-time
Through a joint venture with Technicolor, QUALCOMM
traffic reports, maps, chat and messaging, m-commerce and
is applying its technology expertise to digital motion picture
personal and Internet information. On the business-to-business
delivery and playback. This year we began marketing ABSolute™
side of the market, QUALCOMM subsidiary Wireless Knowledge
image compression technology, a highly efficient solution
is using the BREW platform to develop enterprise solutions
developed specifically for Digital Cinema. This technology greatly
such as corporate e-mail and contact management and field
reduces the amount of digital information needed to represent
asset tracking. Initially a joint venture with Microsoft, Wireless
high-quality digital images. From the studio master to the
Knowledge acquired Microsoft’s interest and became a
theater’s digital projection system, the QUALCOMM Digital
QUALCOMM subsidiary in November under the leadership
Media (QDM) division has developed a comprehensive solution
of Eric Schultz.
with the potential to transform the motion picture industry.
Carriers, Developers and Manufacturers Agree
Under the leadership of Kim Koro, QDM together
By aligning our business units and development efforts toward
with Technicolor Digital Cinema presented a comprehensive
a common goal, QUALCOMM achieves many important synergies.
business and technical strategy to the industry this year, and
Our CDMA technology expertise improves our chipset designs.
demonstrated QUALCOMM’s compression technology at a major
Our chipsets are powering new BREW-based wireless data

9. p06
industry conference. In December, QDM’s technology gained affiliate fleets and subcontractors a powerful, portable commu-
national visibility with the first commercial rollout by Technicolor nications tool that enables drivers and dispatchers to receive and
Digital Cinema of our digital cinema system featuring a digital send load assignments, status updates and other information.
release of the Warner Bros. Pictures’ Ocean’s Eleven movie.
Given the challenging business environment and
In another key business area, QDM is under contract global economy, we did not achieve our financial goals in 2001.
to build initial quantities of highly secure handsets for the U.S. However, our Company posted very solid results this year and
government. These handsets operate nationwide on CDMA set the stage for substantial future growth. We remain confi-
cellular infrastructure, and can contribute to the homeland dent in our overall business strategy. I’m pleased to report
security initiatives. Under the leadership of Scott Becker, this that despite global economic pressures, we expect to grow
Fall the QUALCOMM Wireless Systems division demonstrated revenues and profits in 2002 as 2G and 3G CDMA systems are
a set of aviation safety solutions taking advantage of the deployed around the world.
Globalstar™ Satellite Communications System. Using that
After the implementation of the Securities and
pipeline and our onboard technology system (called MDSS),
Exchange Commission Staff Accounting Bulletin No. 101 this
we demonstrated in flight a number of safety and security
fiscal year, pro forma revenues were $2.7 billion, flat from
applications including live video streaming from cabin and
the year ago period. However, two of our core businesses,
cockpit to ground. Globalstar offers the highest data rate of
Technology Licensing and CDMA Technologies, grew their
any mobile satellite telephone system, and is the only satellite-
respective pro forma revenues in fiscal 2001. Pro forma earnings
based system to use QUALCOMM’s CDMA technology.
per share were $0.98 in fiscal 2001, compared to $1.01 in the year
Communicating with Drivers and Mobile Assets ago period. QUALCOMM’s cash, cash equivalents and marketable
QUALCOMM’s Wireless Business Solutions (QWBS) supplies debt securities totaled approximately $2.4 billion at the end of
fleet tracking and communications services primarily to the the fourth quarter, and we have essentially no debt.
long-haul trucking industry. High fuel prices and economic
QUALCOMM is fully committed to an aggressive
conditions have pressured the transportation industry this
R&D program aimed at stimulating our market and growing
year. However, the division has shipped a cumulative
our business. We are continually adapting our Company to
total of over 400,000 OmniTRACS satellite-based systems, and
meet changes in the environment. As part of that strategy this
continued to gain acceptance of our CDMA-based terrestrial
year we created two major groups headed by Paul Jacobs and
OmniExpress system. We also acquired the assets of the Eaton
Don Schrock. We also added chief operating officer responsibil-
Corporation Trucking Information Services, which allows us to
ities to Tony Thornley, who continues to serve as the Company’s
provide enhanced logistics management applications on our
chief financial officer. I’m quite proud of our entire executive
MVPc™ in-vehicle computer.
team and all the employees at QUALCOMM who are working
As part of our vertical market strategy, we signed hard to create value for stockholders by growing our business
a purchase agreement with Roadway Express, the largest and building on our successes.
less-than-truckload carrier in the United States, to supply our
Thank you for continuing to support QUALCOMM
OmniExpress system. Under the leadership of Chris Wolfe,
and its vision.
QWBS announced the formation of a wireless heavy equipment
consortium and signed industry leaders to broaden the scope
of the division.
Finally this year, QWBS introduced a new BREW
Dr. Irwin Mark Jacobs
application called OmniOne™ a low-cost transportation applica-
,
tion for digital handsets that will provide trucking companies, Chairman & CEO

10. p07
T E C H N O LO GY L E A D E R S H I P :
>>
Innovation is the heart and
soul of our business
QUALCOMM plays a vital role in creating wireless technologies that are transforming
global communications. The Company holds over 1,900 patents (issued or pending)
and receives royalties from intellectual property by licensing technologies to over 100
manufacturers, including virtually every leading telecom equipment and consumer
electronics brand name in the world.
Combining engineering know-how with management vision and marketing insight,
QUALCOMM has become the world’s leading designer and supplier of CDMA chipsets
and system software. These key components are used in network base stations,
handsets, modems and a variety of new wireless communications products.
We are pleased to name as Distinguished Among them, they hold hundreds of
Technology leadership and vision
Technical Fellows, Dr. Klein Gilhousen, patents on CDMA and communications
The QUALCOMM competitive edge is
who served as a founding member of the techniques and devices and are broadly
the end result of contributions by many
board of directors; Dr. Charles Wheatley recognized as authorities in the field of
outstanding engineers. This year, we
and Butch Weaver, both of whom joined wireless communications technology.
are pleased to provide special recogni-
QUALCOMM shortly after its founding.
tion as QUALCOMM “Distinguished
Technical Fellows” to three innovative
engineers for their technical leader-
QUALCOMM Technology Leaders
ship and key contributions to CDMA. featured from left to right: Butch
Weaver, Dr. Klein Gilhousen,
Working together with our chief techni-
Dr. Roberto Padovani, Dr. Charles
cal officer, Dr. Roberto Padovani and Wheatley and Franklin Antonio.
our chief scientist, Franklin Antonio,
they have helped select, train and
inspire many talented engineers to
envision and bring to market a broad
product and intellectual property port-
folio. Our new Distinguished Technical
Fellows are executive and senior vice
presidents with many years of experi-
ence in spread spectrum technology.

11. p08
>>
INVESTING IN R&D:
We have a roadmap for the future
The standard for the next generation of wireless technology
In 1999, the International Telecom- software solutions and development key components for the manufacture
munications Union adopted an industry tools for CDMA handsets, networks and of wireless devices. Each is designed
standard for the third generation of embedded applications. to deliver choice and flexibility for devel-
wireless technology, called IMT-2000. opers and wireless service providers
The solutions on this page represent the
Third-generation (3G) wireless technol- by addressing specific market require-
state of the art in Mobile Station Modem
ogy more efficiently supports voice and ments for price point, feature set and
(MSM) technology. These chipsets are
high-speed data services, delivering roaming capabilities.
exciting new features and changing the
way we communicate. The IMT-2000 3G
standard encompasses three different
MSM5100 MSM6100
CDMA operating modes, CDMA2000,
WCDMA and TD-SCDMA.
Q 1’01
QUALCOMM supports all CDMA
307kbps 307kbps
H2’02
CDMA2000 1X CDMA2000 1X
modes. CDMA2000 1X is first-to-market. SAMPLES SAMPLES
Since it evolved from previous generations
Java H/W
Bluetooth
of commercially deployed and successful New memory
USB, MP3
ZIF
CDMA systems, CDMA2000 1X is now fully gpsOne gpsOne interface,
MIDI, CMX,
BREW
commercial with a growing variety of MMC, R-UIM
streaming video
BREW
feature-rich handsets. CDMA2000 1X
now is the most cost-effective and
spectrally efficient third-generation
CDMA mode.
MSM5105 MSM6050
QUALCOMM supports industry
choices, working to enhance CDMA
standards and provide early chipsets for
Q 4’00 153kbps
153kbps
WCDMA and multi-mode phones that Q1’02 CDMA2000 1X
CDMA2000 1X
SAMPLES
work on GSM as well as CDMA networks. SAMPLES
The people at QUALCOMM CDMA
MIDI, CMX
MIDI
Technologies are enabling the future of New memory
CMX
ZIF
gpsOne interface
communications by working with wireless R-UIM
BREW
BREW
service providers and manufacturers to R-UIM
provide the best chipsets, system
MSM5000 MSM5010 MSM6000
Q 3’01
Q1’00 14.4kbps
153kbps CDMA2000 1X
Q1’02 CDMA2000 1X
CDMA2000 1X
SAMPLES
SAMPLES SAMPLES
EVRC
Voice
ZIF
two way SMS
two way SMS
BREW
CDMA2000 1X

12. p09
MSM6600
307kbps
CDMA2000 1X
CY’03 (CDMA2000 1X)
WCDMA
384kbps
SAMPLES GSM/GPRS
(WCDMA)
KEY
Bluetooth
Bluetooth A global specification for MIDI, MP3
ZIF
gpsOne
wireless connectivity. It allows replace- CMX
ment of the cables that connect devices BREW
with one universal short-range radio link.
BREW (Binary Runtime Environment
for Wireless) QUALCOMM’s application
development platform.
CMX (Compact Media Extension)
MSM5500 MSM6500
A MIDI-based multimedia software.
EVRC (Enhanced Variable Rate Vocoder)
307kbps
gpsOne A solution for wireless position
CDMA2000 1X CDMA2000 1X (CDMA2000 1X)
Q2’01 CY’03
2.4Mbps location technology in a mobile handset
CDMA2000
2.4Mbps
1xEV-DO
for CDMA cellular and Personal
1xEV-DO
SAMPLES SAMPLES GSM/GPRS (CDMA2000
Communications Service (PCS) networks. 1xEV-DO)
GSM/GPRS Data Supports Phase 2+ of Bluetooth
supports all MIDI, MP3
GSM and GPRS class 12 data services.
gpsOne
ZIF
gpsOne
MSM5100 new memory
Java H/W Accelerator A new memory
features architecture
interface. CMX, BREW
MIDI (Musical Instrument Digital Interface)
A digital music generator technology.
MP3 An audio standard enabling high
quality music reproduction.
MMC (Multimedia Card) An interface
MSM6300
enabling removable memory for data
storage and transfer.
R-UIM (Removable User Identity Module) CDMA2000 1X
H1’02 307kbps
GSM/GPRS
SMS (Short Messaging Service)
SAMPLES
USB (Universal System Bus)
A device controller. Bluetooth
MIDI, MP3
ZIF (Zero Intermediate Frequency) gpsOne
ZIF
new memory
Introduced by QCT as radioOne‚ this
architecture
architecture radically improves the
CMX, BREW
way radio signals are converted in a
CDMA handset.
MSM5200 MSM6200
Q 3’01 WCDMA
H1’02
384kbps 384kbps
WCDMA GSM/GPRS
SAMPLES
SAMPLES
Bluetooth
MIDI, MP3
Voice & data
ZIF
new memory
solution, MIDI
architecture
MP3, BREW
CMX, BREW
CDMA2000 1xEV-DO WCDMA GLOBAL ROAMING

13. p10
R E A L 3 G N E T WO R K S :
>>
The door opened to third-generation
wireless technology this year
As the year drew to a close, China’s second largest mobile wireless service provider
neared completion of its initial $1.5 billion IS-95A CDMA network. China Unicom
deployments will cover over 200 cities in the world’s largest wireless market. The
first commercial 3G networks based on QUALCOMM’s CDMA2000 1X technology
launched in South Korea and will soon launch in the United States.
Looking ahead, new 3G deployments are in progress or now being planned in Japan,
Brazil, Australia, New Zealand, North America, India, Southeast Asia, Central and
South America and other emerging markets around the globe.
3G
3G CDMA means fast & affordable wireless
Internet services > Wireless service providers are
> Data “throughput” capacity drives
increasingly looking toward mobile network economics and “peak” data
data as a key driver for future revenue rates affect the user experience.
and earnings growth. It follows that QUALCOMM’s CDMA2000 1xEV-DO
quality of service and the cost to deliver technology offers the greatest
data traffic will be key differentiators. competitive advantage because it is
To be competitive, operators must optimized for data throughput. The
quickly select and deploy the most ability to offer higher throughput,
efficient 3G solutions. peak data rates and, therefore, higher
performance service at a substantially
lower cost creates significant compet-
itive advantage for operators.

14. 1
p1
KTF also began a trial of QUALCOMM’s The engineers in the QUALCOMM CDMA
With Proven
high data rate technology. Complying Technologies Group include easy migra-
Performance Advantages
with QUALCOMM’s HDR specs (the basis tion into the designs of the chipsets that
For wireless service providers, the
of the CDMA2000 1xEV-DO standard), are at the heart of network base stations
promise of increased capacity and
the trial successfully enabled streaming and subscriber devices. Making the
higher data rates became a reality this
video, web browsing and e-mail at fast transition from 2G CDMA to 3G CDMA
year. 3G networks are already serving
data transmission speeds of up to can be a simple matter of switching
millions of paying subscribers.
pin-compatible chips and performing
2.4 Mbps.
First-to-market with a commercial net- a software upgrade.
And An Easy Migration Path
work based on QUALCOMM’s CDMA2000
For today’s wireless service providers,
From entry-level, “voice-only” networks
1X technology, South Korea’s SK Telecom,
CDMA technology offers significant
to feature rich, high-end voice/data
added over 687,000 people to its sub-
competitive advantages. It builds on an
solutions, QUALCOMM supports wireless
scriber base in just three months, and
installed base of over 100 million users.
service providers around the globe by
estimated it would pass the three million
And the path to the future is both easy
providing flexible technology choices,
milestone by year-end.
and economical.
which allow for a speedier, cost-effective
In the same part of the world, Korea
migration path to the 3G world.
Telecom Freetel (KTF) deployed a
CDMA2000 1X network that is already
offering data speeds of up to 153 kbps.
is here
Cost-Effective Data Delivery for Wireless The Best User Experience for Subscribers
Service Providers AIR INTERFACE EFFECTIVE DOWNLOAD TIME
PEAK DATA RATE (3-MIN. SONG)
TECHNOLOGY NETWORK NETWORK
EXPENSE2/MB1 EXPENSE2/MONTH1
GSM 9.6 kbps 41 minutes
GPRS $ .42 $ 83 IS-95A CDMA 14.4 kbps 28 minutes
WCDMA .07 14 GPRS 57.6 kbps 7 minutes
IS-95B CDMA 64.0 kbps 6 minutes
CDMA2000 1X .06 12
CDMA2000 1X 307 kbps 78 seconds
CDMA2000 1xEV-DO .02 4
WCDMA 2,000 kbps 12 seconds
CDMA2000 1xEV-DO 2,400 kbps 10 seconds
1
Assuming 15% traffic volumes at busy hours and 200 Mbytes/month
per subscriber per month, 2x5 MHz available for data traffic
2
Assumes dense data traffic environment, >7500 kbps/sq km
3
Network Expense: network operations expenses plus
capital depreciation
Source: QUALCOMM: “The Economics of Mobile Wireless Data”
http://www.qualcomm/main/whitepapers/WirelessMobileData.pdf

15. p12
REAL 3G DEVICES & SERVICES:
>>
Exciting new products are
entering the market
Samsung Video On Demand phone Cyberbank PC-Ephone Yiso FREEWING YM-1031K modem card
enabled
Useful new features are becoming
a reality >> wireless signals can be received but
Position Location
conventional GPS does not operate.
Developed by QUALCOMM and its
The solution works on all air interfaces
SnapTrack subsidiary, the gpsOne solu-
including CDMA, TDMA, GSM, iDEN and
tion enables wireless service providers
3G networks. The first gpsOne commer-
to offer police and other public safety
cial product was deployed in Japan in
entities the ability to locate wireless
April 2001. Numerous other United
emergency E911 callers. Other location
States wireless service providers,
based services enabled by gpsOne
including Sprint, Verizon Wireless,
include; personal navigation, mobile
ALLTEL, and Qwest will shortly
yellow pages, location-based games
offer the service.
and entertainment, property and stolen
vehicle recovery. SnapTrack’s patented
architecture offers anytime, anywhere,
accurate, high-speed location of a wire-
less caller, even inside buildings where

16. p13
Enabled by QUALCOMM’s 3G CDMA technology, the list of remarkable CDMA2000 1X
wireless devices in production numbers more than 70 and is growing rapidly and
gaining economies of scale. The Company supplies chipsets, system software
solutions and support to the majority of industry leading CDMA manufacturers.
In addition, QUALCOMM earns royalty revenues by licensing third parties to
design, manufacture and sell products utilizing its patented technology.
More than 100 companies are now licensed to manufacture
CDMA equipment. The list includes more than 40 makers of
base stations and testing equipment for CDMA network
infrastructure deployments. And this year, over 40 handset
manufacturers have placed orders for chipsets for use
inside 3G phones and other devices based on
QUALCOMM’s CDMA2000 1X technology.
SK Teletech, Sky IM-3100
camera phone
CDMA
by
Multimedia Software User Identity Expanded Data Capabilities
QUALCOMM’s Compact Media CDMA2000 1X device manufacturers can In August, QUALCOMM and Nortel
Extension (CMX) solution supports now support “Smart Card” products via Networks demonstrated the industry’s
playback of MIDI-based music, including Removable User Identity Modules first Mobile Internet Protocol (IP) call.
downloadable ring-tones with up to 16 (R-UIMs). As a value-added service, Until now, wireless data users were
simultaneous tones, audio, text, anima- operators will be able to store a sub- only able to access “islands” of mobility.
tion and graphics on wireless handsets. scriber’s identity in a single removable Mobile IP is a solution that allows
card, making global roaming across data to be transferred anywhere across
Designed for use across QUALCOMM’s
different networks or even countries 3G networks, enabling “always on”
Mobile Station Modem (MSM) solutions,
easier. Smart Cards allow subscribers access. Users are able to roam freely
beginning with the MSM3100, CMX is also
to exchange handsets while using the without interruption.
a key component of QUALCOMM’s Wireless
same card to maintain all personal and
Internet Launchpad suite — which
billing information.
offers powerful, built-in functionality
to device manufacturers.

17. p14
A P L AT FO R M FO R E N A B L I N G T H E W I R E L E S S I N T E R N E T :
>>
QUALCOMM is giving people
a reason to use wireless data
Developers are truly unleashing the power of the wireless Internet with new applications
and content thanks to a new wireless application development platform from QUALCOMM
called BREW (Binary Runtime Environment for Wireless). Developed by QUALCOMM Internet
Services, this breakthrough platform provides a standardized framework that supports the
development of applications that users can download wirelessly to their BREW-enabled
handsets. It’s also a business model for monetizing wireless networks by driving demand
for high-speed wireless applications.
new applic
BREW-ing a New Business
Model >> The Store The Retailer
The wireless device The wireless service
becomes the “store” provider acts as the
through which subscribers “retailer,” handling billing
make direct purchases of and using applications for
applications. market differentiation.
The Wholesale Distributor The Supplier
QUALCOMM serves as the Third party developers
wholesale “distributor” (the are the “suppliers” into
middleman) for developers the distribution channel.
and carriers.

18. p15
The door opened wide to the wireless download applications over the air, Kyocera, LG Electronics, PC-Phone,
Internet this year when Korea Telecom and streaming video on handsets with Panasonic, Samsung Electronics, SANYO,
Freetel (KTF), a leading South Korean color displays. Sharp, Synertek, Telson, Toshiba, and
CDMA wireless service provider, rolled ZTE.
The growing list of companies support-
out the first commercial BREW-enabled
ing the BREW initiative includes wireless QUALCOMM recently formed the BREW
applications and services to subscribers
service providers, device manufacturers Developer Alliance Program to support
in November. The service allows KTF
and application developers. Service applications developers. Its membership
subscribers to easily customize their
providers already include ALLTEL, Bell features well known companies inclu-
handsets with a variety of wireless
Mobility, Bell South in Guatemala, ding Mattel, Primedia, Sega, World
applications, including games and
Telcel, Iusacell, KDDI, KTF, Leap, Wrestling Federation Entertainment
entertainment options as well as
LG Telecom, Pegaso, Saskatchewan (WWFE) and many others.
messaging and navigation services.
Telecommunications,Telcel-Bell South,
As BREW-enabled services become
When KTF launched its public trial of Telesp Cellular, Unicom Horizon, Verizon
commercially available, interest continues
the BREW-enabled service in Seoul in Wireless and Vesper.
to grow, as demonstrated by the more
September, participants were selected
Device manufacturers now using the than 10,000 downloads of the BREW
from more than 200,000 consumers
BREW platform include 3G Cellular, Software Development Kit. Consistent
who registered online to try out the new
Appeal, AirPrime, Cyberlane, Denso with the QUALCOMM business model
services. More than 160 applications are
International America, Denso Corporation of promoting CDMA worldwide, BREW is
currently available. The user experience
of Japan, Etronics, Hanwha, Hitachi, Ltd; expected to drive demand for high-speed
includes 3D graphics, the ability to
Hyundai, Intercube, KTF Technologies, data and the high-end device market.
ations & content
BREW
Brew In Action >>
BREW-enabled wireless handsets
and devices will allow users to
access an exciting array of down-
loadable programs.
Clockwise from top left, courtesy of: Com2uS Corporation; Navitime MapData: Copyright
Shobunsha Publications; Anicom Software Co., Ltd.; JAMDAT, Mattel, Inc. ©2001; Togabi.

19. p16
FINANCIAL HIGHLIGHTS:
Pro Forma >>
(unaudited)
The full audited consolidated financial statements for fiscal 2001 can be found
in QUALCOMM’s Form 10-K, the Proxy Statement for the 2002 Annual Meeting
of Stockholders and on QUALCOMM’s website at:
www.qualcomm.com
or contact:
QUALCOMM Incorporated
(858) 658-4813 phone
(858) 651-9303 fax
During the fourth quarter of fiscal 2001, the Company adopted the Securities and
Exchange Commission’s Staff Accounting Bulletin No. 101 (SAB 101) and applied the
effect retroactively to the beginning of fiscal 2001.
All results presented in this Summary Annual Report are SAB 101 adjusted. SAB 101
changes the timing of revenue recognition related to certain license fees and hardware
product sales.
Pro Forma Revenue and EBT Pro Forma Research Cash, Cash Equivalents and
(IN MILLIONS) and Development Marketable Debt Securities
(IN MILLIONS) (IN MILLIONS)
R&D
REVENUES
2.5 $2,381
% OF REV
EBT
$2,712 $2,680
$2,095
$409
$2,465
15.3%
2.0
$300 $1,495
1.5 11.1%
8.7%
$215
$1,277 $1,214
1.0
$862
0.5
0.0
FY99 FY00 FY01
FY99 FY00 FY01 FY99 FY00 FY01

20. 7
p1
QUALCOMM is providing the reported and unaudited pro forma (see notes (a) thru (l)) consolidated financial results below
so that investors can compare our results from ongoing operations with and without non-recurring charges or credits. Pro forma
earnings differ from reported earnings, which are presented in accordance with generally accepted accounting principles.
Pro Forma Condensed Consolidated Statements of Operations (unaudited)
(in thousands, except per share data)
Twelve Months Ended September 30,
2001 2001 2000 %
Reported Adjustments Pro Forma Pro Forma Change
Revenues $2,679,786 $ — $2,679,786 2,712,035 (1%)
Operating expenses:
a,b,c,d,e
Cost of revenues 1,035,103 (57,197) 977,906 1,067,218 (8%)
b
Research and development 414,760 (5,938) 408,822 300,130 36%
b,d,f
Selling, general and administrative 367,155 (5,639) 361,516 281,261 29%
Amortization of goodwill and other
c,e
acquisition-related intangible assets 255,230 (255,230) — —
a,e,g,h
Asset impairment and related charges 549,783 (549,783) — —
i
Other 50,825 (61,674) (10,849) —
Total operating expenses 2,672,856 (935,461) 1,737,395 1,648,609 5%
Operating income 6,930 935,461 942,391 1,063,426 (11%)
i
Interest expense (10,235) 7,545 (2,690) (2,204) 22%
a,e,h,j
Investment (expense) income, net (255,999) 530,022 274,023 228,586 20%
Distributions on Trust Convertible
Preferred Securities of subsidiary trust — — — (13,039) (100%)
a,h
Other (167,001) 167,001 — —
(Loss) income before income taxes
and accounting change (426,305) 1,640,029 1,213,724 1,276,769 (5%)
Income tax expense (104,501) (320,302) (424,803) (472,838) (10%)
(Loss) income before accounting change (530,806) 1,319,727 788,921 803,931 (2%)
k
Accounting change, net of tax (17,937) 17,937 — —
Net (loss) income $ (548,743) $ 1,337,664 $ 788,921 $ 803,931 (2%)
Net (loss) earnings per common share:
Diluted $(0.73) $0.98 $1.01 (3%)
Shares used in per share calculations:
l
Diluted 755,969 51,188 807,157 800,121
(a) Excludes certain asset impairment and other (e) Excludes certain asset impairment and other (i) Excludes net charges related to an arbitration
charges and credits related to the Globalstar busi- charges related to the exited analog-only cellular- decision against the Company, as follows:
ness, as follows: $49.3 million in cost of revenues, untethered trailer-tracking management system $61.7 million in other operating expense and
$519.0 million in asset impairment and related business, as follows: $4.6 million in cost of $7.5 million in interest expense.
charges, $9.9 million in investment income and revenues, $0.4 million amortization of goodwill (j) Excludes $243.3 million in unrealized losses of
$47.1 million in other non-operating charges. and other acquisition-related intangible assets, derivative instruments, $147.6 million in unreal-
$2.2 million in asset impairment and related
(b) Excludes the employer payroll taxes payable ized other-than-temporary losses on marketable
charges and $2.3 million in investment expense.
for employee income from non-qualified stock securities and other investments, $37.5 million in
option exercises, as follows: $3.9 million in cost (f) Excludes $5.2 million in employee termination unrealized other-than-temporary losses in other
of revenues, $5.9 million in R&D expenses and charges, a $2.3 million gain on a sale of fixed investments and $0.5 million in net realized gain
$2.9 million in SG&A expenses. assets, and $2.4 million in initial public offering on a investment related to the impairment of its
charges related to the cancellation of the cost basis in prior periods.
(c) Excludes the amortization of goodwill and other
QUALCOMM Spinco IPO.
acquisition-related intangible assets primarily (k) Excludes $17.9 million for the cumulative net
associated with the purchase of SnapTrack as (g) Excludes a $3.1 million adjustment to reduce effect of the adoption of FAS 133 and SAB 101.
follows: $1.2 million in cost of revenues and reserves established related to the sale of the (l) The diluted share base used for the reported
$254.8 million in amortization of goodwill terrestrial-based CDMA wireless consumer results excludes the potential dilutive effect of
other acquisition-related intangible assets. phone business. 51.2 million common share equivalents related
(d) Excludes certain credits related to the reduction (h) Excludes certain asset impairment and other to outstanding stock options, calculated using the
of reserves established in connection with the sale charges related to the Vesper Companies and treasury stock method, as these shares are
of the terrestrial-based CDMA wireless infrastruc- VeloCom, as follows: $31.8 million in asset anti-dilutive. For pro forma results, these shares
ture business, as follows: $1.8 million in cost of impairment and related charges, $89.8 million are dilutive and are, therefore, included in the
revenues and $2.5 million in SG&A credits. in investment expense and $119.9 million in pro forma per share calculation.
other non-operating expenses.

21. 8
p1
INVESTING IN THE FUTURE:
>>
The spirit of QUALCOMM is
focused on people
Leading our industry, our Company and our community
“An investment in knowledge always pays the best interest,” said Benjamin Franklin,
and that philosophy is evident at QUALCOMM. Built on the spirit of invention,
QUALCOMM is committed to continuous learning for its people and is strongly
connected to the community at large. With two former professors among its
founders, the Company has long appreciated the fact that investing in training and
education is essential for corporate growth and competitive advantage in a business
where knowledge is the principal currency. To that end, QUALCOMM is comprised
of an exceptionally well-educated work force of 6,500 people who come from over
100 different countries and speak more than 50 different languages. That diversity
and focus on continuous learning is really central to the spirit of QUALCOMM.
speakers and instructors, the Learning
Investing in training and education
Center creates programs focused on
Through its university relations program,
results, enabling employees to apply their
the Company hires hundreds of college
knowledge directly to their work.
interns every year and many return as
Acknowledging the importance of
full-time employees. QUALCOMM also
that effort, this year QUALCOMM was
educates thousands of industry profes-
named to the Training magazine list
sionals through its CDMA University and
of the “Top 50 Training Organizations
BREW Developer Training programs.
in America.” Also this year, Human
From computer software training to
Resource Executive, a leading HR busi-
management and leadership skills, the
ness magazine, named Dan Sullivan,
QUALCOMM Learning Center offers a
Ph.D., QUALCOMM’s Executive Vice
wide range of classes and resources.
President of Human Resources, the
By working closely with its business
2001 HR Executive of the Year.
units to develop customized curricula and
bringing in the most respected experts as

22. 9
p1
Investing in the community
The people at QUALCOMM are
QUALCOMM Cares.
committed to being good corporate
High Tech High. One of the
QUALCOMM Corporate Connects our volunteers
citizens and good neighbors in the first tuition-free, publicly
Giving. Donates a portion with non-profit
and privately funded
communities they call home. In the spirit of the Company’s funds to organizations serving
charter schools of its kind.
community causes. a wide range of
of volunteerism, last year more than
community needs.
1,000 QUALCOMM employees donated
approximately 10,000 hours of their time
to non-profit causes. That spirit is
manifested in a number of QUALCOMM
QUALCOMM Kids.
QUALCOMM Matching
community outreach programs such as: Provides QUALCOMM
Grants. Provides dollar-
Stadium tickets to
for-dollar matching
children who might not
grants for employee
otherwise be able to
donations to any qualifying
attend a professional
non-profit organization.
sporting event.
Bridging the Digital
Divide. QUALCOMM has
committed $25 million
over five years for
programs that will help
students prepare for an
increasingly technology-
driven society.
QUALCOMM’s awards and
honors include > The 100 Best Companies to Work
> Industry Week’s 100 Best
for in America™ (FORTUNE) (1999-2001) Managed Companies
FORTUNE’s 100 Fastest-Growing Top 100 Companies to Excel in
Companies in America™ the 21st Century
FORTUNE 500® (1999-2001) S&P 500 Index
The FORTUNE 50 NASDAQ 100 Index
Forbes 500’s ANNUAL DIRECTORY Deloitte & Touche 500 Fastest
The Forbes ASAP Dynamic 100 Growing Technology Companies
Electronic Business Top 200
Forbes Platinum 400
Business Week Information Companies
Technology 100
Business Week “Hottest of the Hot”
The Business Week Global 1000
Dr. Daniel L. Sullivan
Executive Vice President, Human Resources