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

Paul Jacobs, Qualcomm chairman and CEO

that as Qualcomm’s chairman and CEO, he doesn’t get to oversee technology development projects. It was “kind of fun” to take on the smartwatch as his own pet project, he said.

Jacobs said the idea for a smartwatch struck him in much the same way that he realized in the late 1990s that mobile technologies were converging to make something like a smartphone inevitable. Jacobs said that epiphany came while he was sitting on a beach in Maui in 1997 or ’98, and he used his PDA to search Alta Vista for the nearest sushi restaurant. He said he realized it would only be a matter of time before those same capabilities would be incorporated into mobile phones.

But at that time, Jacobs added, people were just not ready for a higher plane of existence. Qualcomm tried to develop one of the first smartphones, he said. But in those days, consumers just wanted to use their mobile phones make phone calls.

In those years, Jacobs was the general manager overseeing Qualcomm’s handset manufacturing business (the company sold the business to Kyocera in 1999). He said the challenges of the handset business made him realize that Qualcomm was better situated to act as a technology innovator and catalyst for the entire wireless industry. “It was better for us to be an enabling technology manufacturer than to try to make phones,” said Jacobs. Handset design, he added, “is kind of a fashion industry” that requires a fundamentally different set of skills.

Qualcomm’s strength lies is in the complexities of wireless chip design, particularly in developing the hardware and software needed to integrate scores of different radio bands, encoding standards, and wireless carrier configurations.

If you read between the lines, Qualcomm’s chairman and CEO was providing some good reasons why the wireless technology giant won’t be expanding its smartwatch business much beyond its limited edition. Qualcomm doesn’t want to make smartwatches. It wants to supply its technology and components so the rest of the world can build their own smartwatches.

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.