804328--11/6/2008--QUALCOMM

related topics

{product, market, service}

{regulation, change, law}

{customer, product, revenue}

{property, intellectual, protect}

{system, service, information}

{acquisition, growth, future}

{operation, international, foreign}

{capital, credit, financial}

{stock, price, operating}

{competitive, industry, competition}

If deployment of our technologies does not expand as expected, our revenues may not grow as anticipated. Our earnings are subject to substantial quarterly and annual fluctuations and to market downturns. Our two largest customers accounted for 30% of consolidated revenues in fiscal 2008, 27% in fiscal 2007 and 26% in fiscal 2006. 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. Efforts by some telecommunications equipment manufacturers and component suppliers to avoid paying fair and reasonable royalties for the use of our intellectual property may create uncertainty about our future business prospects, may require the investment of substantial management time and financial resources, and may result in legal decisions and/or political actions by foreign governments that harm our business. The enforcement and protection of our intellectual property rights may be expensive and could divert our valuable resources. Our industry is subject to competition that could result in decreased demand for our products and the products of our customers and licensees and/or declining average selling prices for our licensees products and our products, negatively affecting our revenues and operating results. Successful attempts by certain companies to amend or modify Standards Development Organizations (SDOs ) and other industry forums intellectual property policies could impact our licensing business. We depend upon a limited number of third-party suppliers to manufacture and test component parts, subassemblies and finished goods for our products. If these third-party suppliers do not allocate adequate manufacturing and test capacity in their facilities to produce products on our behalf, or if there are any disruptions in the operations, or the loss, of any of these third parties, it could harm our ability to meet our delivery obligations to our customers, reduce our revenues, increase our cost of sales and harm our 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 revenues, 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 or make investments that could result in significant changes or management disruption and fail to enhance stockholder value. MediaFLO USA does not fully control promotional activities necessary to stimulate demand for our services. Our industry is subject to rapid technological change, and we must make substantial investments in new products and technologies to compete successfully. Changes in assumptions used to estimate the values of share-based compensation 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. Our business and operations would suffer in the event of system failures. Government regulation and policies of industry standards bodies may adversely affect our business.

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804328--11/6/2008--QUALCOMM_INC/DE