804328--11/2/2006--QUALCOMM_INC/DE

related topics
{regulation, change, law}
{acquisition, growth, future}
{product, market, service}
{customer, product, revenue}
{operation, international, foreign}
{capital, credit, financial}
{property, intellectual, protect}
{cost, regulation, environmental}
{system, service, information}
{competitive, industry, competition}
Our three largest customers accounted for 39%, 39% and 40% of consolidated revenues in fiscal 2006, 2005 and 2004, respectively. The loss of any one of our major customers or any reduction in the demand for devices utilizing our CDMA technology could reduce our revenues and harm our ability to achieve or sustain desired levels of operating results. The enforcement and protection of our intellectual property rights may be expensive and could divert our valuable resources. Successful attempts by certain companies to amend or modify Standards Development Organizations (SDO s) intellectual property policies could impact our licensing business. Our suppliers may also be our competitors putting us at a disadvantage for pricing and capacity allocation. Currency fluctuations could negatively affect future product sales or royalty revenue, harm our ability to collect receivables, or increase the U.S. dollar cost of the activities of our foreign subsidiaries and international strategic investments. We may engage in acquisitions or strategic transactions that could result in significant changes or management disruption and fail to enhance stockholder value. Defects or errors in our products and services or in products made by our suppliers could harm our relations with our customers and expose us to liability. Similar problems related to the products of our customers or licensees could harm our business. Our business and operating results will be harmed if we are unable to manage growth in our business. Our industry is subject to rapid technological change, and we must make substantial investments in new products and technologies to compete successfully. Changes in financial accounting standards related to share-based payments are expected to continue to have a significant effect on our reported results. The high amount of capital required to obtain radio frequency licenses, deploy and expand wireless networks and obtain new subscribers could slow the growth of the wireless communications industry and adversely affect our business. Noncompliance with environmental or safety regulations could cause us to incur significant expenses and harm our business.

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