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Qualcomm: How 7 MIT Graduate Came Together to Create a Company With 23.55 billion USD Revenue

A simple idea can set a revolution in an era. The mid 1980s witnessed the planting such a seed of an idea which would eventually take over the technological world. Seven brilliant and visionary minds set up to meet and discuss about setting up Quality Communications. The seven minds Irwin Jacobs, Andrew Viterbi, Harvey White, Adelia Coffman, Andrew Cohen, Klein Gilhousen and Franklin Antonio invented wireless communication system now used in almost every electronic device.

The story began in 1985 when these MIT graduates gathered at Irwin Jacobs’ house to discuss the idea of developing a wireless and quality communication system. The company successfully signed its first contract to work on the unique digital wireless technology – CDMA. The technology is used by the US military to have secure communications. The company, in 1988, launched products like OmniTRACS satellite locating and messaging service which tracks the vehicles along their route.

The initial days of developing CDMA were challenging for the founders. With only six months on working on the technology they had to demonstrate their product before potential investors. Irwin Jacobs, however, confidently walked on the stage and demonstrated the product which would set history in the wireless industry. The first CDMA technology was then known as IS-95. Since then, Qualcomm has successfully established CDMA2000, WCDMA and LTE technologies which are widely used in mobile phones.

Qualcomm, in 1999, took a big step and sold their base station to Ericson which was then followed by selling phone manufacturing to Kyocera. The decision came with a mutual consent to completely focus on developing and selling ASICs which implemented the others. This helped the company to become the largest semiconductor company in the world. A common person can find their chipsets even in their home in devices like TV and smartphone.

The Big Leap
No other company has acquired as many companies as Qualcomm has from 1997 to 2014. Qualcomm has acquired nearly fifty technological companies that are directly or indirectly related to their sole products. In 2012, the company invented yet another path-breaking chips called Snapdragon chips. This chips are mostly used in smartphones by giants like Xiaomi and Samsung. Apple uses modems developed by Qualcomm and not the Snapdragon chips.

Game of Strategies
The founders have played a strategic game by developing something which every device must have and the companies developing those devices have to license it before using. For example, the 3G and 4G interface standards are the product of Qualcomm’s CDMA. The company aims to develop CDMA at much more advanced level. The upcoming upgrades would add to the efficiency of the already available chipsets by multiple times.

Qualcomm today has estimated revenue of 23.55 billion USD. Qualcomm’s contribution to the world of wireless technology is beyond appreciation. We might just think for a moment what if there was no wireless technology? There would be no WiFi, Bluetooth, etc. The world would be a messy place with all those wires around. Qualcomm lives on the motto ‘Enabling the wireless industry’ and it has stood to its slogan since its inception and will continue to do so in future too.