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Qualcomm CEO Paul Jacobs on the growth of value smartphones and the importance of the Chinese market for revenue.
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Him the -- has connected more than ever before today even at the top of the Swiss Alps are almost claim -- -- the World Economic Forum in Davos Switzerland with the guy we can all thank for back activity.
And of course the Smartphone revelation.
-- how it's the chairman and CEO of Qualcomm and and frankly your data Irwin who founded the company.
We've really be way behind in the Smartphone revolution in the way it's it's nice when we see it.
An American company not to get all jingoistic care but nice to see an American company take a leadership role in the what's the one thing that you feel you did right.
In the past ten years to bring us to where we are today.
I think you know we really try to follow vision of what it meant to have.
The Internet in the -- -- hand so.
I always believe that the wireless Internet was gonna have a bigger impact on the world -- the -- -- And that's happening now there's more mobile broadband and wireless -- newswires.
How far back to Rico where he would tell people that say there's going to be a time where.
No one -- and -- you know.
A wired laptop and that they'll be having mini laptops in their hands we we did that already in the early ninety's that we put.
All the Internet protocols inside a cell phone.
In the very earliest days of RC -- technology what that looked like me was that like that it did you know while Wall Street -- for the movie that gigantic and there was there was a little large but that we get a Smartphone that.
Somebody told me you could of attacked somebody with that.
It was a big threat but -- fell back then.
Those -- the phones where they were all kind of big back then when you are at an event like Davos where it's international are you looking at the Egyptian delegation and seeing what phones are they using -- are safe for example the Israelis -- the Russians what laptops to they love what.
Tablets and I love it right now from your perspective what catches you on -- thing is that we were so global now.
That we're in those markets so I actually know what's selling in -- of these different markets and you know if you go to the developing countries it's sort of the low end -- -- a lot because we're getting them down to.
150 or even under a hundred dollars and then that means that people can have those phones throughout their society.
And that makes a huge step I've heard the politically.
Correct term is valued Smartphones.
O not -- and -- values Smartphones.
So -- a lot of companies out there that are starting to put this together.
And how interested are you when -- that piece of the pie.
That's where Intel's going 'cause it seems like you guys have really crystallize the opportunity that's in the higher end Smartphones.
-- we -- very focused on the value Smartphone segment also.
We actually have a separate group that set up that really focuses on -- at the low end.
And then we also do reference designs so we go to a manufacturer.
And give them essentially completed phone which -- -- -- the software.
Maybe -- a little bit of something special for themselves but these companies they get their phones out in.
A few months.
And it's really amazing how quick that happens.
It just churning turning very very rapidly at that value segment how how much are you hanging around the Chinese delegation because Smartphone shipments are expected to jump about 50% 2013 84% of that.
-- into the Chinese market China's is very very important market for us both because.
The market domestically but also because so much manufacturing -- down there now.
China really is by far our number one source of revenue direct revenue for Qualcomm so.
We're very focused on -- I was just there at a China Telecom handset supplier event.
Thousands of people they -- listening to.
What's next for them.
Tell me.
What phone I've never heard of that you see a lot of people in China caring -- they have their own version of Steve Jobs it's a guy who runs a company called shall -- -- me yeah and that's Internet distribution and so -- associated with it.
Very slick user interface they have tons of followers on their social networking site and so.
That's a company that most Americans haven't heard of because it's mostly sold in in China.
Show me everybody remembers that.
Cannot look at all that's happening.
Yeah when it comes to investing money.
And -- talking about capital expenditures.
You've expended in spent some money at sharp.
Is that gonna pay off when will we see -- there.
So the money that we invest in short was really to complete the development of some display technology that we -- working.
On them -- And a lot of people look at the financial state of some of those Japanese display companies they say both things must be -- well.
What we know is that they have some great technology so we're combining some technology they have with some technology that we have and we're hopeful that that can come into the market relatively soon we haven't.
Made a product wants announcement yeah.
But that will come relative was.
What's the number one question you would love to have answered I don't care how technical it is or how broad it is.
That would help you Russia -- with your company's growth in 2013.
I really want to know whether -- US government can solve our fiscal problems that they can reform the corporate tax so that.
Money that's earned outside -- and we have.
Eighteen billion dollars outside the United States that could come back to United States but the corporate tax doesn't work that -- right now so I'd love to see.
Territorial tax system public -- tax reform -- -- just get through this.
Fiscal problem that we have right how about a tax holiday repatriation of funds that are overseas.
What they do that that would be even better I'm not I'm not gonna hold my breath for that one don't hold your breath all right Paul Jacobs thank you so much chairman and CEO of Qualcomm.
We'll send -- back -- you in New York.
