Why Qualcomm’s Paul Jacobs Will Stifle the Smartwatch He Created

Paul Jacobs, Qualcomm chairman and CEO

The Toq smartwatch that Qualcomm (NASDAQ:[[ticker:QCOM]]) unveiled yesterday at its annual Uplinq developers’ conference was a pet project that was conceived and shepherded through development by Paul Jacobs, Qualcomm chairman and CEO.

But at the end of the day, Jacobs told reporters and analysts, that doesn’t mean the San Diego wireless technologies giant he manages will crowd its partners by jumping into the consumer electronics business.

As if to underscore that point, Samsung (one of Qualcomm’s biggest partners) unveiled its Galaxy Gear smartwatch in two places yesterday—at the IFA consumer electronics show in Berlin and at the Korean electronic giant’s Unpacked event in New York City. The timing could be interpreted as a bid to share smartwatch headlines, although some news accounts focused instead on the prospects of a looming smartwatch war, with predictions that Apple, Microsoft, and Google will soon unbutton their own wearable gadgets.

The Toq smartwatch was Qualcomm’s big surprise for an estimated 2,200 attendees who descended on the San Diego Hilton Bayfront Hotel for a developers’ conference that began Tuesday night and ends tomorrow. And Jacobs ensured an enthusiastic response by declaring everyone in the audience (except media and foreign attendees) would get one of the new smartwatches once they become available this fall.

smartwatch
Qualcomm Toqs and earpieces

As Jacobs later explained, Qualcomm plans to sell its smartwatch as a limited edition product that is intended chiefly to showcase some innovative technology features: Qualcomm’s low-power Mirasol display screen; Qualcomm’s Wi Power LE technology that re-charges the Toq’s internal battery wirelessly (a single charge lasts three to five days, depending on usage); Bluetooth audio technology that streams “true stereo” premium audio to wireless earpieces; and AllJoyn, Qualcomm’s proximity-based peer-to-peer networking technology.

“We’re trying to make it less about us, and more about what’s feasible,” Jacobs told reporters and analysts during a late-afternoon news conference. “Qualcomm is not going to be a big consumer electronics company.”

Of course, Jacobs conceded that might change if demand for the Toq proves to be huge.

Still, the company’s expects to

Author: Bruce V. Bigelow

In Memoriam: Our dear friend Bruce V. Bigelow passed away on June 29, 2018. He was the editor of Xconomy San Diego from 2008 to 2018. Read more about his life and work here. Bruce Bigelow joined Xconomy from the business desk of the San Diego Union-Tribune. He was a member of the team of reporters who were awarded the 2006 Pulitzer Prize in National Reporting for uncovering bribes paid to San Diego Republican Rep. Randy “Duke” Cunningham in exchange for special legislation earmarks. He also shared a 2006 award for enterprise reporting from the Society of Business Editors and Writers for “In Harm’s Way,” an article about the extraordinary casualty rate among employees working in Iraq for San Diego’s Titan Corp. He has written extensively about the 2002 corporate accounting scandal at software goliath Peregrine Systems. He also was a Gerald Loeb Award finalist and National Headline Award winner for “The Toymaker,” a 14-part chronicle of a San Diego start-up company. He takes special satisfaction, though, that the series was included in the library for nonfiction narrative journalism at the Nieman Foundation for Journalism at Harvard University. Bigelow graduated from U.C. Berkeley in 1977 with a degree in English Literature and from the Columbia University Graduate School of Journalism in 1979. Before joining the Union-Tribune in 1990, he worked for the Associated Press in Los Angeles and The Kansas City Times.