QUALCOMM (QCOM) 28 Jul 222022 Q3 Earnings call transcript

Ladies and gentlemen, thank you for standing by. Welcome to the Qualcomm Third Quarter Fiscal 2022 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded July 27, 2022. The playback number for today’s call is 877-660-6853. International callers, please dial 201-612-7415. is number reservation playback XXXXXXXX. The like I to the over turn Lopez-Hodoyan, would Vice now Mauricio President call Relations. to of Investor Mr. Lopez-Hodoyan, ahead. go please

prepared Thank call and afternoon, good Palkhiwala. remarks include Akash you, Amon by everyone. Cristiano and will Today’s

question-and-answer In join session. addition, will Alex Rogers the

access release and our this on presentation accompany a our earnings can Relations website. slide Investor call You that

website In will be replay qualcomm.com, and later addition, today. a this call is being on on our webcast available

in non-GAAP the on and Regulation call defined today, measures During related the GAAP G, use can to financial the will find you as we reconciliations website.

our make SEC including to results statements. business recent or or from We President forward-looking will differ Please future from or to contain results. including of XX-K, actual financial and could now our could materially and events, that differ Executive also refer filings, industry business Cristiano most forward-looking And which trends comments statements, cause in statements. projections our Amon. materially events factors important estimates Officer, from results Chief Qualcomm’s Actual the forward-looking to or projected those

you, with Thank fiscal and performance afternoon, and long-term our and joining Thanks enabling execute is world vision everything QX connected. to we on our how continue in intelligently very I’m of Mauricio, us today. everyone for a good pleased everyone. where

connected industry a are applications, As from we into continue to company a the scale Roadmap intelligent across transforming edge. Qualcomm we mobile company our industries and for One new Technology communications the for processor

chipset businesses. our of were record non-GAAP by IoT year-over-year results per up driven revenues revenues we our strategy. delivered solid licensing $X.X automotive, earnings billion the revenues In our of both, XX% diversification quarter, demonstrating of success $X.XX business, and billion with and of This $XX.X in chipset in share, and

development few notable I with our on update to you a would an highlight quarter, this like in milestones important relationship I Before Samsung.

in XXXX, a have Snapdragon validates choice Snapdragon of the expanding Samsung pleased platforms starting is multiyear Qualcomm the premium and This for of new report technology agreement that We’re globally. Samsung experiences. future use Android the to entered very products Galaxy premium for platform

smartphones, addition reality extended In the PCs, Galaxy tablets, and agreement includes to more.

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have portfolio step developers and model. develop One OS of same AI is Roadmap a Qualcomm for develop We mobile including also optimize With wireless high-performance, once, on-device Stack solutions across in scaling offering, Technology QNX, for AI Linux, and our support, models Ubuntu a now the company rich others. the Windows, and industry true believe for Qualcomm AI a deploy can the once, revolutionary model intelligent from the connected Android, low-power to how variety then is OEMs products Qualcomm processor communications anywhere edge. company processing. different move These demonstrate a this new We tiers transforming and

forward strategy, the challenging move investments and and economic our sustainable mindful disciplined we’re Lastly, differentiation as stockholder we we on execute continue of environment, to remain on drive and value. that

We strategy, long-term well stable driving the We customers and long are validate positioning that demand focused for term. technologies remain our to are believe that trends industry industries us continue the on our unchanged for drive growth. and

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Before event. for automotive Akash, I York join next-generation on I like you vehicles. call Day the first the would technology at Automotive is to invite to us Investor September platform leading our ever Qualcomm to provider over turn XXnd in New

is call drive over in We enabling will now demonstrate to transformation design Akash. growth the our pipeline. automobile and turn to Snapdragon win Chassis would like continuing the Digital the of the I how to

and afternoon, Thank everyone. good Cristiano, you,

$X.X adoption of of EPS driven technology impact the with automotive digital revenues midpoint our growth by another XX%, in revenues our product premium volume and economic delivered the leadership, high year-ago Consistent We of XX% year-over-year operating revenues products. in $X.XX, $XX.X We grew $X.X year-over-year, driven grew midpoint results in strong our year-ago third saw X% with and $X broad of increased favorable to of quarter. fiscal performance revenue These which especially by RF billion, QTL the report and despite million and of mid on non-GAAP to QCT offset quarter $XXX pleased challenging efficiency. our XX%, by diversification product the cockpit XX%. versus are XX% Handset our the of and revenue with reflecting revenues billion. both high at Non-GAAP revenue billion portfolio, our strong reflect guidance. a industrial EPS results revenues quarter, launches EBT of revenues growth revenues versus margin dollar environment. at across and the low and front-end was the handset growth EBT quarter the We guidance. mix. above driven quarter $X.X of XX% ago record We of edge guidance XX%, networking recorded EBT of portfolio. billion year-over-year and IoT respectively, the in tiers. the were XX% revenues $X.X of of of and of and year with of non-GAAP billion billion and margin guidance, XX% decrease were of of tiers end increased combined our up by with Snapdragon strength in more versus growth by IP delivered XX% than of

now to mid-single-digit million on ‘XX global XG We handset XXX Looking decrease handsets. XG, XG expect million including percentage forecast. basis, to calendar forward year-over-year by XG, handsets global a XXX to

the exiting of handset impacted the reflects guidance Our volumes that quarter. adversely trends continuation June the

are the In $XX to estimated billion second $X.XX $X and We calendar guidance the in and forecasting their impact $XX.X of just billion $X.XX. fiscal in with caution the approximately outlined. of customers macroeconomic measures expect the The quarter, impact the our to includes reduction headwinds cause to China in in economy of the revenues of act forecast an will to of EPS midpoint global we the elevated I managing non-GAAP fourth and the handset global of due uncertainty in COVID ‘XX. purchases half

of growth handsets, implies At our Snapdragon to premium tier growth of tiers, we automotive sequential by In updated across margins guidance are strength in this enterprise, EBT demand XX%. billion which to normal forecast. and the XX%, We XX% XX%. a across to X be the midpoint, the revenues of of lower In On seeing inclusion the of in to and other QCT, to basis, we to We sequential dollar assumes sequentially, industrial weakness expenses volume operating expect of EBT the expect In pockets due and handset anticipate global remains $X.X non-GAAP expenses handset billion IoT, is X% of XX% are and margins with $X.XX QTL reflecting of resilient, offset and XX% revenue half approximately growth forecasting Arriver revenue billion revenues quarters consumer EBT reflecting of while for X% acquisition. we of streams. QCT growth year-over-year to $XX.X up unit products. growth. billion $X.XX

to include fiscal quarter. fourth arrears the the be third fourth are an one reporting results of until reminder, a in since ‘XX quarter year. Based Arriver expecting we our not exceptional As our guidance, did we’re on fiscal quarter quarter midpoint

expect We growth non-GAAP of EPS fiscal $X of ‘XX. for a $XX.XX,

are ‘XX, greater forecasting $XX revenues QCT of points. grow on X margin diversification, to focus combined below driven greater processor growth fiscal With fiscal market. expansion on of we are year-over-year EBT slightly of to and are front-end, expansion content than addressable We $XX continued approximately handset XX% billion QCT track ‘XX. revenues revenues and than IoT by greater automotive billion, and relative a of of in than RF our increased $XX our billion forecasting

agreement, of unchanged. intact. are Day forecast with current we With provided the driving while intelligence to cloud of our are signed processing we focused to artificial we Investor that bring you, remains Mauricio. edge. We announce vision are environment, you, the this to Thank terms. to QTL Samsung connectivity, by same In a our we on at through growth and royalty remain closing, and our Lastly, XXXX long-term fundamentals back executing license extension long-term at agreement pleased data mindful on the the

Akash. ready Operator, we for you, now are questions. Thank

[Operator Our Ramsay with comes you. from question first Thank Matt Cowen. Instructions]

to give just everybody. prepared very in And on could your some little sort Cristiano, in a a discussed Android. of bit I’d particularly, breakdown little But us weakness in we’ve Thank handset right how and afternoon, a bit. you’re of Yes. market you it that you Good much. mid-tier like the you guys double-click now. script, seeing -- maybe

globally? you’re there, contrast would with there’s premium, market you that the maybe Android what seeing if you’re specifically the really Thank in be And helpful. could and in China trends mid-tier seeing differences you. and If the Android that with any then market, mid-tier low-tier

of the than it the did tier the market we Look, one. our to But, very to see at you being this We’ve We and I originally high is this for Matt. this combination on strategy we’re a the your resilient market, forecasted. and market. years. think question, likely doing the familiar of be be focused Thank proven on economy. the China positive premium been is smaller for lockdowns, with with macroeconomic And side, we changes environment look the

to weakness So, in report it. can tiers, QX. little the saw not results but our guide low color we tier more we a think how and the mid bit in premium in more And we add in how remained about Akash maybe the QX, to only resilient

Yes, Matt.

exiting that of limited the some And to economies. with quarter, of mid, calendar in is impact course, lower rest in forecasting quarter in the the what the extending trend impact forward developed an third third forward. So tiers. continue to second the of what of ‘XX, adverse handset in in saw units world are rest And add saw going the that half that, really the we there but impact fiscal in China, we to the forward was low was largely was we

are and to the year in $XXX to forecast ‘XX, the updating year. to for we’re overall versus updating million million the down we range the be XG also calendar mid-single-digits So, forecast $XXX

give you, all the Maybe us really lowering give you’re to some December year that you a follow-up out in calls the grateful. and have you any full it. kind with you’ve been that for fact on guys. us Thank on ordinarily the if views quarter, the could movement Got there, the prior end forecast enough be color we’d and the as Akash, into quarter you. market directionally calendar Thank handsets,

Matt. Sure,

quarter up the both for for quarter December QTL and business you us, strong know, the QCT handset seasonally a is business. As

So that unchanged. remains

see fiscal again quarter. growth to as increases the that performance. we impacting forecasting and calibrated fiscal growth fourth it to financial holiday into fiscal saw device We’re benefit look will We we’ll we’ll factors some from that going out but us see fourth going launches still flagship the we to and rates strong season of same first quarter. be see in still expect our to quarter, And are third quarter, expect the do December we by growth --

you. Thank

question Bank is next Our coming Tal with America. Liani of from

guys. Hi,

And and if question with about seeing the basically kind cumulative also gain equivalents the down is, already. share is down And the First the data talk and sheet. question basis, ASP going take down. down us Cash on it’s course? the sequential $X.X want of by is a QCT, to there? whether second, can you us you’re market. that line trend RF some over RF. of story Can basis went you give balance RF on a it’s segment, sequential in is now it’s in RF but of I through the And is trends billion, slowing on trends, question to the

second Sure. and Tal, can it’s start I’ll question the Akash. the Cristiano first start on also one add top. with and

after the you as balance, acquisition cash ended. right Arriver the closed On March know, we the quarter

for paid so, Arriver by And is billion the driven seeing cash in change the are primarily $X.X you acquisition.

have that positive by capital in offset it which of CapEx we billion being cash flow Of and we then, And $X.XX course, -- was strong quarter. returned also by was billion related payments a on very and balance the quarter. $X.X made tax that the other in we return, expenses it offset did

Arriver So down comes payment front-end. one, kind on it we to made the the RF of second On for acquisition. really, the

think the for more it growth saw, the us. forecast XG year. in about overall kind the should is, you way for you the the something the And of market that XG is as down grows So, units brought RF with for we front-end line

is low very to on does mid-tier played grow processor seen business. the whereas scale not content a handset high side, on RF significantly similar, Also, And relatively remains generally, scale a our you has that so, from tier, something when you’ve just it role. that tremendous

the the tiers, seeing range. up the of As and we go end you’re content is much to benefit much high higher, at are top higher, premium the that ASPs show

just Cristiano, a Tal, of going So couple is to this add things.

been bring every to we’re to leadership started single And entire the very we Wi-Fi. portfolio have that. on front-end been one now RF continue starting have focused we IoT to and track thing to So, auto drive across And focused very that component.

front-end excess now, the it’s As an RF in in of example, design automotive. the $XXX pipeline, right million win

Wi-Fi. chips Wi-Fi our RF announced We with over opportunity Bluetooth to as front-end well. also next-generation see for We go and modules

So, market, grow faster we and the expect because in in to the mobile tracks auto And attached mobile be said, front-end focusing than Akash driving as it’s on growth It an and on IoT. of Snapdragon. processor content. we story

Thank you.

next Chatterjee Our the Samik line from question of JPMorgan. coming with is

here, gets of a comments many month you the smartphone that if terms you. I the remains show on as follow-up. Maybe couple. can I of smartphone Akash, signs it I referred market up it of of And the how the of rate the have China start I trough reach sort China month market. there show with reopening. the that market does trough the sort June what you are market given month that I smartphone when I thinking of June. sort -- way to you’re rebound exiting with positive because to a government Thank least sort June, had know and data some I sort from -- assuming of cycles same What global to the June regional positive after the is in think market? Any seeing in or some remember did the signs? data of a of at think, to

Yes. Sure, Samik.

with act of the manage should the But purchases. You’re you customers cause the their is the to they to reacting right. We did see OEMs caution way data in in some how think June. about improvement these month headwinds

not the in that’s It’s overall that our to units June are they month the kind forecast happened reacting it’s just environment forward. what informs really forward. what so, really of that of and going for standalone projecting And and

I a bit And unpack to that the more. a follow-up, just for ask for quarter guide, if you September can

softness You The product, primarily quarter-on-quarter with more North low-tier high of modest have launching and growth past typically American expecting that. as you a seasonality customer of there? mid primary are now on is of the guiding customer in mid-tier their and weaker Android the high-end or double-digit some QCT end American well that -- your then Android, you’ve driven North sort that you’re sort to account on

Sure.

at you midpoint our So, look actuals we’re when quarter June $X.XX. of $X.XX guiding versus so of fourth guidance,

still And a a on in growth So, guiding that side. strong basis year-over-year implies a quarter-over-quarter the we’re growth this environment. EPS basis, on on XX%

If our you that the at about range the $X.XX impact and widened guidance gave, given guidance the an uncertainty to look we we the had midpoint estimated macroeconomic. also range of related

what down inventory break you right? Snapdragon is on work well. planned volume as holding, high But the that are of market just course, So happens overall mid, tiers low and seeing careful the as tier question, through as kind of and new If we manage premium environment. your they launch being buying customers is the from direct with

that you’re so, forward. going guidance our And factored seeing into

I is can add Cristiano. This one thing. just if Maybe

consumer down, unpack have the about Akash way EPS, So, to we at will the what $X.XX growing the to XX% you strength any The what we sequential think and macroeconomic conversation in mid been in earnings market, units have less growth break in by us in QX the size way QT. see have I the has we environment offset I in premium look macro, addition mobile have IoT, QX. throughout the is in of auto. being -- that industrial in offset reduction We been at is, resilient we including in year-over-year. And consistent weakness in and season auto if have that sequential the we we we had this the our said but guide, as enterprise. tier see record growth We that low, any even

of some have less consumer is our faster And so, even because numbers, peers, of they you. mobile. those XX% when year-over-year a we exposure we look at than than do Thank growth actually

you. Thank

Our Goldman line with coming Sachs. is from Rod next the question of Hall

short, One end that high not guys impact that in the I quarter. happening, your you late thinking, particular September Chinese some for those and that to curious questions not year. got And on preorder back that seeing that. September, know was back high then I the has the high if I’ve the two of Android I’m think affect anticipated necessarily kind kind supply been original going is some a quarter makers might from are on chain, follow-up end I the but as of and there frame? just in, November you Cristiano, chips, end, guys. And end of those is the have I October, September launches time guess, might the

Yes. Akash. Rod, it’s

the of side. holding. our not any quarter front-end behavior is sooner seeing the premium demand the We’re impacting expected handset people than tier, buying In that’s on September

As that very roadmap strong we tier. that in you relationships, a have know strong

And buy so, we are to December. looking normally they would as then seeing the September forward customers to continuing into go and quarter as we

that to the just would that quarter. Akash, December comment? on correct, come most then probably Is So clarify, of impact that in

Yes.

So, talking a you launch, phone normalized... if about Apple’s see would you’re

launches, Android in mainly High-end China.

exactly. Yes,

So, going they we and both happen Chinese that then September December, of going but quarter start normal holiday Year. phones, into New through season the a into when basis, launching end December on is purchases see

to that. expect see of we the benefit seasonal So,

Great.

we for We’ve spotty channel just of end, indications you all they’re of the ask that. into inventory well. look a Verizon you inventory. going in in fall. there’s retail. clear then, wanted high levels see promotions think Thank And clearance abnormal as is high-end Okay. occurring in smartphones to some And as guys on also lot of clearance. to going I saying China We inventory had I on inventory

of status the is forward demand early some pull whether out might of the inventory least clearance there, and you think at this you season? of out of what think the So, part, I’m just fall curious inventory some

Yes.

and work that’s sides what’s of caution some being cycle gave. year, balance. is second impact I the their half the I with an said that China with we’re we of And mean, the September needs on they the work impacted inventory that to with as the as macro that perspective, and inventory kind guidance seeing has a a end inventory industry both on the a side, the And then the So, as what clearly, through OEMs before, kind that in market from to through through purchases calendar we within both expect December. result, the act forecasted of

you. Thank

question Our next line with Michael coming Canaccord is of the from Walkley Genuity.

Thanks. the through Samsung XXXX that Congrats on deal includes XG. extension

this Just, flow payments could are deal, Snapdragon anything the Cristiano, an Akash, on any commitment? or just or And you share there maybe upfront extension the or that? of share for you that if any model, any XXXX? might anything guaranteed cash can there then Is impact the on more it color for provide exclusivity just is

question. for is Thanks this Alex. Michael, the

current that the licensing we’ve to to happen what way the the the is deal, end will XXXX place rate. seven Instead, works XXXX, is XXXX. in have agreement to that’s same of agreed since Samsung a through expire the end extend this for On been we royalty of was set years at at

it contributes that’s to So, straightforward. our it’s program, program future as our the as It And going significant very of see portfolio, validation licensing event leadership. a forward. lot QTL for a of it’s milestone important pretty validation the very pretty stability really innovation QTL for benchmark the it, of very, a We well. renewals simple,

is in describe here’s my besides auto relationship, agreement. And which in-house opportunity record thing prior over to We revenues, remember, average the IoT chipset has -- if the Hey the in XX% for of the agreement quarter. the this Yes. favorite Galaxy way Look, years and XX, Samsung solution growth the with for thank Michael, you would I was versus the you probably question. would it’s the about this their signing business. many share the

Our Samsung announcing climb now, to up multiyear agreement we’re to smartphones the Galaxy a power about globally. share And XX%.

excited incredible high I mobile think about focused premium tier very wallet provides our than stability and strategy be validate to in share of on business. cannot agreement. that. So, It of better anything to this our for

very When at very of very, remember Series, content OEM. I than that’s or about I equal -- would five all silicon Snapdragon better and you remember like modem So trade. for X revenue a a the exciting. I that think another to good earnings of least

tied part the for is Now, the of agreement second with growth up diversification. multiyear opportunity this our

So, to PCs, include books, extended devices Galaxy smartphones other it future Galaxy expands reality beyond devices. and tablets, Windows Galaxy

closer agreement, significant and much So, are very companies a excited together. really the very

line with question is Deutsche coming Seymore next from Ross Our the of Bank.

My strong. is on conditions side guided appeared for year, you’re talking quarter same and first question if amount. business et QTL fiscal in cetera. headwinds, last uncertainties, you remarkably the And things, guiding guide. for fourth But quarter, the about when of think QTL your the I This year, you’re line about macro pretty to

how we not in the I’m like So, Can talk getting the picture you fold question investors it maybe I guess, derisked more macro guidance QTL is about the from big but cautious seems with Qualcomm view? has the the QTL. side, QCT

Ross. It’s Sure, Akash. Yes.

upgrade is said kind we’ve a my ones. I being new as prepared the in factor they maybe it stronger portion QTL and As other mix devices also people ASPs, buy of on inflation remarks, the side but is seen helping device the of

is volume And side. QTL is the the what so, offsetting mix the on

forward shifting guess, and looking gears And little a I bit.

than guide talk to a margins more drop quarter, June dropped big last guys a was gross You by your bit obviously was supposed per a Company and report margins guidance this little the expecting. it been the bunch, tailwind In in have but math, my as well. quarter, for your I and it about EBT but

could the back generally this we half what think the you into puts tailwinds, the talk So, and Akash, of should about headwinds, within QCT as just takes would we be about gross What margins? calendar head year?

to. Happy Sure.

to think it things the us have for profile margin you QCT strategy is, markets. op margin as key apply profile created handsets when our gross the well, for one, and technology we our margin other about diversification helps we gross and gross That So, use also profile. margins, as but

is, for second also is premium devices, tier us. a helpful as we more The sell trend that

slightly pricing see increasing mix balance went beginning side. seen that you’ve allows as benefit on foundries, it’s quarter. face we again, forecasted the on the do the well of But so, look strong ended we We we shifting margin gross of side. had gross forward, of where maybe margin last from quarter than did able even quarter to is the of to guide change And us previous the a at very the that lower we’ve our up up when pretty been a mix you the and in through

change. If you no forward, look really

comfortable operating margin which very guidance, with we’re profile. that there. we’re long-term no margin think, comfortable contemplates I And a a we with where We’ve change given strong are at. guidance, gross

of Our line coming is Morgan Stanley. with next from Joe Moore question the

comes On can strategy little the a bit You a period pricing tight gross that an margin your the I business? more And you price handset saw during talk period that talk part just people of worried you’ll think similar note, Can competition. dynamic? supply. as you generally about about the of a see have some how that to end, benefit you in see

Yes.

both obviously pricing market, on side. players and participating It’s large a is who are market. And handset there has the sufficient honestly, market So there very relatively us. for two of the stable are that been in

well. have as consistent approaching market, that’s So, them seen we’re we how and the be

gross executing the profile. we executing. at on focused contemplated focused we are number. thing gave other we’ve say the what And some XX% in as the this for Day, the that is is on greater side, on operating The way upsides really, margin before, said But decline the we -- margin to on than I’ve we’re I’ll guidance Investor

relatively about retail. then inventory talked inventory you parts, And the context Great. Qualcomm end of sort market until had why that mean, correction the in of shortage have? is talk recently. you haven’t Can had inventory of the in maybe China of the fact I that of a the you the some reason that component you same Does -- RF that some guys about

side, get majority an have handset some been of is a you from to at Well, trends we’ve the perspective, chasing that look when place. similar seen. RF comfortable But which seen supply our of to we’ve peers profile, our the the inventory obviously

second half of to expected and planned. seeing supply demand calendar out And so, reconcile before, we’re the as year, we really we’ve as always that and play in said

question is Blayne with from Barclays. coming Our next Curtis

Maybe taking for question. prior my one, I last have start just with Thanks the my Hey. two. questions. I’ll given

do quite it’s Just XXX you Can it on still you terms in inventory up? long comment of on June, it at I this time but a is mean, just feel I shipments? your you caught bunch point is days. coming, finally I inventory, a know like in gaining guess, your been

we’re Blayne, a place. generally, in like we Yes, good relatively feel

to or still place. there on. Now nodes with just I’ll shortage But that we’ve feel reconciled pockets reasonable of like overall, you us, are December. course, than at we a of inventory doubled just when for balance, of a say look and And dealing parts couple more our revenue quarters also seasonal stronger we’re September our heading into we’ve last we’re over the years.

the a on seeing coming you’re is reflection balance what so, And really sheet up. of what’s

they maybe the wrapped Obviously, this their much the these just any that higher, your of I’m internal I’m Got little means? on real agreement, as for you. follow with Samsung more just bit on And agreement quarter, was then I agreement. it trying it, punch line trying understand up you Is Cristiano, kind handset that’s XX%. some share last to around what share wanted to the to -- just more had about devices? to question on because the or modem. there struggles said a color other is

is flagship XX% Galaxy point is we I line, were about you the way should The Yes. say Snapdragon think at what on product low And agreement. can SXX Galaxy power, products. they are before this they’re it Galaxy

better to multiyear thinking can tell I It’s you. agreement. You be what And that that’s than going should and SXX -- beyond. it’s much be on a Galaxy about probably we’re

powering devices You globally. us about their should think

you. Thank

question Simpson Our with from is Arete Research. Brett next coming

the Apple Cristiano, to Investor about wanted I that the by out guidance ask Day. was at laid Akash

I you second XX% expect in ‘XX, about the new think, mentioned those iPhones Akash, share iPhones. that would you new half of

would see to long-term more modems? Now getting Qualcomm to for secure you. share? And And modems changed you that capacity? you line, demand that new foundry can negotiate your a has that at if account, were view Thank to we’re all by closer this time we the agreement need at for

to about this think modem not feel continue road Thank we’re at Apple more And it you. supporting And good a difficult market than in beyond will And end be that is especially you XG. providing any pretty Qualcomm one becoming updates expect our more we modems map should I time. Brett, leader. as smartphones.

Akash. And clear. ask That’s to Okay. follow-up flow. cash just maybe for wanted a I just about free

ability what’s You’ve flow you broadly lot we more about when And ‘XX of can some capable Qualcomm’s talk moving levels cash targets, from business working the the But of to free foundry the had and increases. a flow the you. with of of prepayments might parts, looking cash I guess, fiscal capital of margin at really Thank see higher free start business? achieving? for

right. Yes. Brett, you’re

of or kind couple and quarters, addition capital to two key but obviously, done, acquisitions ins reservations. program. being in of then outs, Over that a have pretty then, also we’ve the we capacity aggressive last had return a ones several that, few quarters And

your it’s to back those of step a and strategy question, When combination outlined Day. that direct to our Investor at So, change really factors. we I no

are focused We most the do to several that years. our and something have been planning returning continue we very the over we it, to to of that. prioritized with aggressive flow That’s free shareholders. very cash last are We’ve on

Thank you.

line Pajjuri is coming from Srini question Our with SMBC. final the of

you your And years, Thank even at premium question a next of fully position with of couple the for about I you. end? the low I’m it’s that this your here, XG. as and the is reason opportunity in know I mid mostly like low seems on bit the segment. if of a we guidance with can is look the think about been Cristiano, market you end. think focused in to the little decline And you’ve XG, most the mid premium penetrated talk asking

in get hands the about and opportunity low-end? my So, should transitions growth you market want to today? I think just for the as how And mid-end market around to your what’s we XG share

low. Actually, worked environment parts. it which It model. the two high. mean breaking not strategy, share Look, win really for upside supply gets does environment And Thank answer opportunity that is down to in predicted opportunities that’s question. normalized we a in the good the to of supply and serving an we’re be the the important make mid, sockets, to the on had sockets lot sure supply-constrained it’s and as focused premium have for the low in definitely to especially and wallet going secure not you for as of mid we Maybe be to and sockets second for now and our I’ll very your an this an in a question. very half, well us for we

out But of you look I growth Got and it. to SoC for growth discrepancy will the explanation to maybe we for then gave pretty think good discrepancy the a and And Thank RF RF we similar? the Akash. on year. us think between growth, be should or or handset next you the the as Akash, two, expect year growth kind do you. remain, somewhat this

Yes. Hi, Srini.

to We’re a continue going discrepancy. to have

camera, is for this audio think it processor CPU, board. content for how us. look around, we to shows the time content included that’s the demand couple obviously, that example, premium it’s across tier of increasing AI, a There’s a that all really whether we increasing And content, you just security, are if at I GPU, an lot more web video, the slides tiers. applies at

handset growth do will so, we that And side. expect the that drive revenue on stronger

auto front-end, see this which SAM then from As markets is we expansion opportunities India the IoT like since there, of XG benefit course, year, really mentioned benefit on we’ll play of there. RF later of expansion as where for the deploying to and we’ll also start and XG, Cristiano XG transition

vectors different that in for So growth area.

adjourning call? today’s anything do further Thank have you you. That before Amon, Mr. concludes question-and-answer session. the to add

to by A of couple the a None message. employees in All really for I’d partners of great are our to place. like and thank you strategy just quarter. changed. I that driver want our growth Yes. to things our of has start fundamentals

We’re strategy control, really we is can on but working. our things focused

company mobile that Qualcomm transforming intelligent are in edge. connected for company for the We industry the into a processor a communications was

way Investor a the the things incredible we mentioned we in very lot about it you story think for Samsung about We’re to to development exciting have forget Auto talk to business. to and And in It platform much a company, much going Investor where And later edge. and competitive in continues you for year. in excited the is our the the the in to and making growth script tune also. in things the Thank we Day for devices. to progress some silicon building That’s of opportunities the of talk see for in with one other Auto don’t share that stability the success the a really and growth very support, Day. handset we’re our very didn’t is you agreement. we’re be, AI is about your

Ladies this today’s and gentlemen, conference call. concludes

disconnect. now may You