Press Release

Qualcomm Responds to Dataquest Market Study

Dec 10, 1998SAN DIEGO

Qualcomm products mentioned within this press release are offered by Qualcomm Technologies, Inc. and/or its subsidiaries.

Qualcomm Incorporated (NASDAQ: QCOM) today responded to a recently published industry report by market research firm, Dataquest. In its report, which focused on wireless phones sales for the first nine months of 1998, Dataquest recognized that the acceleration of the transition from analog to digital phones by wireless subscribers is now underway. Dataquest reported that there were 10.1 million digital phones of all technologies (CDMA, GSM, TDMA) sold in the United States, versus 7.9 million analog phones from January through September of 1998. Qualcomm agrees with Dataquest's description of the general market trend.

Although Qualcomm does not normally comment on information from third parties, the Company believes that Dataquest significantly underestimated the size and growth of the CDMA market, as well as Qualcomm's shipment volumes and market share. In the nine-month period from January through September of 1998, Qualcomm sold approximately 1.8 million Qualcomm-branded and Qualcomm carrier co-branded CDMA digital handsets, produced at QPE, to wireless carriers in the United States. The Dataquest study indicated that Qualcomm sold approximately 828,000 phones. While the Dataquest numbers represent sales to end-users, and not ex-factory shipments to carriers, Qualcomm believes that a large percentage of phones have been sold through and that its market share is substantially higher than reported by Dataquest.

Except as noted above regarding general market trends, the size of the CDMA market and Qualcomm's shipment volumes and market share, Qualcomm makes no comments on any other element of the Dataquest report, including but not limited to numbers of digital and analog phones actually sold.

Qualcomm Incorporated (NASDAQ: QCOM) is a leader in developing and delivering innovative digital wireless communications products and services based on the Company's CDMA digital technology. The Company's major business areas include CDMA phones; Application Specific Integrated Circuits (ASICs); wireless infrastructure; technology licensing; and satellite-based systems including OmniTRACS® and portions of the Globalstar™ system. Qualcomm is headquartered in San Diego, Calif. Qualcomm's fiscal 1998 revenues exceeded U.S. $3 billion. For more information, please visit the Company's web site at

Except for the historical information contained herein, this news release contains forward-looking statements that are subject to risks and uncertainties, including timely product development, the Company's ability to successfully manufacture significant quantities of CDMA or other equipment on a timely and profitable basis and those related to performance guarantees, change in economic conditions of the various markets the Company serves, as well as the other risks detailed from time to time in the Company's SEC reports, including the report on Form 10-K for the year ended September 27, 1998 and most recent Form 10-Q.

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Qualcomm and OmniTRACS are registered trademarks of Qualcomm Incorporated. Globalstar is a trademark of Loral Qualcomm Satellite Services, Incorporated.

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References to "Qualcomm" may mean Qualcomm Incorporated, or subsidiaries or business units within the Qualcomm corporate structure, as applicable.

Qualcomm Incorporated includes Qualcomm's licensing business, QTL, and the vast majority of its patent portfolio. Qualcomm Technologies, Inc., a wholly-owned subsidiary of Qualcomm Incorporated, operates, along with its subsidiaries, substantially all of Qualcomm's engineering, research and development functions, and substantially all of its products and services businesses. Qualcomm products referenced on this page are products of Qualcomm Technologies, Inc. and/or its subsidiaries.

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