QUALCOMM (QCOM) 2 Nov 222022 Q4 Earnings call transcript

Ladies and gentlemen, thank you for standing by. Welcome to the Qualcomm Fourth Quarter and Fiscal 2022 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded November 2, 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 please the over turn Lopez-Hodoyan, would go Vice Lopez-Hodoyan, now Mauricio Mr. President call Relations. to of ahead. Investor

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

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

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

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

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

We including or future business of make will trends results. events, financial also forward-looking projections and or industry statements, business or estimates

to which materially to most could or Actual statements. our those contain events filings, refer differ from recent from that materially including results important our actual in could cause our factors XX-K, projected forward-looking results the SEC differ forward-looking Please statements.

to Officer, President comments and And Qualcomm's Executive Chief from now Amon. Cristiano

Thanks today. communications our to business and for and execution of for growth performance chipset remain wireless We good on our the to Thank intelligent a has in Qualcomm with joining year Fiscal for afternoon, a you, strong been 'XX record Mauricio, and transition company a everyone. from us mobile strategy. continuing industry for processor a Qualcomm connected focused the diversification company strong edge.

of at in economy by low-power digital leadership of devices high-performance, and and powering the Roadmap connected utilizing the edge, AI. We're computing growth driving our industries connectivity, transformation the billions smart One wireless of on-device with the Technology

growth remain coming which challenges in opportunities fundamentals headwinds is unchanged and While the with significant years. short-term drivers by significant Qualcomm's immune, not industry macroeconomic the semiconductor of we're from being impacted the other

$X.X record and performance in year-over-year, chipset of and delivered of licensing. we were revenues handsets, and of share earnings non-GAAP automotive up IoT. $X.XX, across QX, QCT including business solid revenues our record reflecting billion in XX% record billion performance per $XX.X In revenues

$XX up billion the automotive of QCT, revenues. $X.X revenues billion, growth fiscal 'XX engine XX% contributed year-over-year. growing year-over-year revenues year-over-year. delivered year and XX% QTL the combined were Fiscal $XX.X up billion in company, with of XX% of revenues IoT

In Let highlights into products Samsung, me for of Galaxy multiyear Snapdragon entered fiscal new a expanding year. now a future with we premium agreement the from handsets, the globally. few use summarize platforms Samsung

We key premium high-tier design also landscape in securing with premium Snapdragon worldwide. experiences executed wins with our on changing the become has opportunity, OEM China. synonymous customers mobile and

than pipeline billion. our connectivity, $XX automotive, digital cockpit is across design now In win and greater ADAS

Arriver, fully to We enhances completed competitive the ADAS open, ability of which deliver our scalable, acquisition also integrated and solutions.

Importantly, the now established automotive technology a we firmly preferred Snapdragon the industry, and for the key next-generation Digital have and platform partner strategic Chassis for as ourselves vehicles. is

driving conversions verticals. road we and spaces; intelligent the digital the notably, personal trends capitalize extended the broadband; edge, the IoT, computing our of on transformation of transformation to In the ongoing of home; of and the with physical virtual the expansion enterprise mobile; across map many chipset connected intersection

XX. capabilities on game-changing Ignite Snapdragon developer Snapdragon wins IoT, which conference XXXX our redefine traction recently for The on solutions, OEM CPUs. we in next-generation Windows Microsoft will In consumer at of experiences ecosystem platform incorporate design demonstrated AI increased user custom our compute Windows our

custom We also with starting announced a reality devices to and next-generation multiyear platforms. virtual experiences Snapdragon agreement mixed XR with develop by premium Meta reality powered

provider platform well announced be a and leading for remain develops. all devices available to commercially virtually and as continue XR We positioned XR

design we related our rollout interest traction we seen new positive edge are solutions. mesh have WiFi the enterprise wins access and to strong and in In XE X retail for of And networking WiFi solutions share points for IoT, seeing X systems.

wireless wireless fixed platform fiber industry's for the solution choice of now XG is access broadband our globally. Additionally,

with us industrial The growth to In markets wins edge position handhelds, smart industrial end diversity enterprise payments, margin-accretive growing IoT, gateways, robotics, processing. industrial. opportunities these across significant we well camera, and of strong from for benefit built foundation in collaboration growth and a durable

extended important and for agreement establishing benchmark with we XXXX, long Samsung term the an In through for our future licensing, renegotiations.

delivering our for strategy validate growth. In record fiscal addition financial to achievements a provided results, strong have 'XX and foundation our long-term

we across As restrictions in channel and macroeconomic further the 'XX, to China look industry. elevated the weakness fiscal deterioration COVID temporary inventory extended demand resulted environment and of have

committed in of the current business of As light our the ahead. good to growth managing stewards losing sight of are stockholders, for capital environment significant we without our opportunities

our disciplined optimizing R&D in expenses investments managing that within operating focus we're automotive very prudently growth To to while on being end, IoT. and

hiring a spending fund product and have to areas implemented our diversification. and across already have mature SG&A we reductions planned We freeze, our

are and expenses additional to needed. are making actions, and committed reductions to evaluate We further as we prepared to continuing operating

in current It is no of has and manage the are And term. position that that the adjustment impact growth strong in important a to cyclical headwinds. drawdown company earnings power note the inventory long to the a near-term is we underlying the on

Beyond Day number grow the XXXX, automotive in see pipeline materializes. win design consistent projections We will a as we anticipate scale. our our with increasing strategic initiatives growth revenues of auto Investor

We expect design on in an to in see to XXXX based of a Windows wins on inflection significant PCs Snapdragon point number date.

significant curve. other started opportunities to just India economies its at the wireless XG growth regions developing fiber and beginning in have that such as XR just presents deploy is XG of networks.

of and transformation the will to connectivity momentum, digital intelligence industries edge. driving the Lastly, at continue gain

sheet our cash the remain the short-term our history current strong generation. consistent strategy flow our confident remain challenges, of In in ability summary, despite balance strong downturn the growth We to free navigate and intact. fundamentals of economic given

returns our executing continue focus and on stockholder ongoing on will diversification We to opportunities.

for multiple remain demand expand company processor firmly establish end intelligent multiyear the next more our the One Technology by the unchanged resilient. driving industries to across market to tailwinds edge. Roadmap secular for $XXX addressable powerful our as than billion track The approximately decade We Xx are and in Qualcomm connected on and

turn the like would to I Akash. now to over call

$X.XX. macroeconomic increases afternoon, announce challenging to XX% reflect a strength EPS driven and These results across good XX% record you, in environment, and In by of revenues Thank EPS, billion pleased QCT. are $XX.X fourth we and respectively, year-over-year and of of strong revenues results with quarter non-GAAP Cristiano, everyone.

also EBT of a for versus of on premium EBT and revenues growth XX% XX%. quarter was our and XX%, ago above of of portfolio Snapdragon product our across year-over-year year revenues record billion and margin billion of midpoint quarter the of strength $X.X both growth XX% This $X.X QCT of tiers. the with increased revenue guidance dollar high Handset

IoT and of industrial on by to impacted million $XXX were As revenues were expected, the channel weakness XX% continued billion year-over-year revenues across up IoT. Automotive edge revenues inventory. the grew networking million growth of $X.X RF $XXX handset front-end market of due handset our quarter adoption Chassis. revenues the broad of units Snapdragon XX% of to to versus the the beginning QTL of impact $X.X billion relative quarter. and of the reflected Digital XX% year our expectations of lower EBT ago the margin at and

Turning record delivered EPS of to growth respectively. fiscal revenues year-over-year We XX% XX%, non-GAAP results. 'XX and with and

underscoring non-GAAP over more non-GAAP X fiscal In from looking our businesses. addition, and fiscal our the to across we've 'XX EPS past strong revenues momentum the 'XX, fiscal than tripled almost years, doubled

as in streams of expansion QCT, all fiscal EBT In 'XX revenue XX% XXX 'XX. to across margin fiscal records as in basis well from we had approximately XX% points

of our combined We revenue strategy as continued we across delivered diversification XX% of year-over-year are pleased growth and with the automotive. IoT success

disciplined our to billion long-term of repurchases. returning flow, value. continue capital billion stock $X.X in commitments, delivering we our $X.X in be cash return We dividends Lastly, in XX% stockholder executed free on including and

how I'll near-term guidance, turning our challenges to the by impacted address semiconductor first industry. quarter the Before outlook is financial facing

earnings last COVID demand Since restrictions and the demand see IoT. broad-based of across to in we for handsets during deceleration a call, macroeconomic communicated and then, to started China in have sustained we tiers weakening As deterioration had regions. further mass-tier consumer environment the led in

made elevated inventory our changes resulted now They largest XXXX Given volumes constraints Due XG, these on channel significant including semiconductor have to easing these demand decline their This to on low financial project handset rapid supply across XXX elevated digits XG basis, the drawing we to double our impacting and negatively policy. inventory, calendar a of XG, industry in XG year-over-year customers performance. million levels, in their by handsets. to XXX have considerations, deterioration near-term down now million in inventory. are

X current estimate Based there we our of that assessment, weeks XX elevated roughly to are on the channel. in inventory

the on work dynamic, While first information than completed inventory have the of we this based believe is drawdown may through itself take the in to very quarter. environment fiscal we more quarters the today, couple of half with a

monitor in confident and order continue we'll are to patterns to inventory levels environment successfully, our We this closely. navigate and ability

and hiring in SG&A. Cristiano spending downturn, specific freeze implemented levels, handsets, reductions mature while product other areas actions the and this we already As navigate we've to our manage outlined, including

We if actions and continues to additional expenses the macroeconomic prepared will on remain reductions take disciplined to deteriorate. to decisive be environment operating further

quarter. Turning to guidance fiscal for the first

exchange of billion primarily EPS in forecasting end-market billion $X.XX. with and related inventory foreign the the are $X.X revenue billion headwinds. revenues to $XX estimated of demand approximately in EPS of to impact of impact an guidance The weaker $X.XX our We of includes and drawdown midpoint $X.XX channel remaining and due to $X non-GAAP to

to expect $X.X XX%. we of to EBT billion billion QCT, of $X.X XX% revenues and In margins

and still described. automotive. record fourth basis, performance due in On sequentially expect the handsets down just to our revenue the I expect be growth year-over-year Following across to IoT revenue and we we IoT streams quarter, impacts a

$XX We of updated billion a year-over-year EBT holiday estimate handset $X.XX exchange revenues of including on forecast, for benefit XX% This reflects and the margins a approximately QTL estimate XX%. from the seasonal and billion to foreign $X.XX basis. to quarter headwind million muted

operating sequentially. decrease to Lastly, we X% non-GAAP now anticipate expenses X% to

front-end an for I Apple provide assumption conclude, revenues. update and to product I'd like stream revenue planning RF disclosure on Before

front-end our RF due the #X portfolio. We revenues strength breadth grown product in become handsets to and of have to the our player

IoT. win Looking forward, handsets, by across X and XG growth pipeline platforms driven we be design automotive and for strong expect our WiFi to

within As in we will revenues streams. fiscal a consolidate starting 'XX, RF handsets, front-end and automotive IoT revenue result,

RF Investor against Day on In continue provide front-end our addition, combined target. periodic we'll revenues updates to the

share from vast expect modems revenue, previous our for For XX% launch, we Apple of the product assumption. now majority have XG up to iPhone XXXX the of

fiscal our Beyond no revenues assumption, changes to and this, Apple minimal we product planning there 'XX. are assuming contribution in from are

strong navigate the balance for and road In leadership our we headwinds customer confident maintain near-term presents position. relationships deep current and backdrop help industry, in leading our these sheet closing, technology us remain challenges to map, our while

processing we to drive and vision the bring intact Our diversification opportunities long-term growth continue data to remain to cloud strategy as intelligence connectivity, and artificial our edge.

Thank to Mauricio. you, Back you.

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

[Operator Cowen and with Ramsay Instructions] Matt Company.

deterioration smartphone of -- the guess in clear a channel I the on but prepared I has script parts the maybe Cristiano, market. guess big what's my to were with magnitudes the directionally, guess really X really with are it about surprise. guys question, going I first No -- macro. different, customers on inventory that's you and no

about that do ASPs of you you're things in weakness second business the part I year are, a -- had guys weakness guys well? have seeing premium Do the over you there X. performance mid-tier from seeing the some do you and are tier? strong So Are the this guess we weaken, questions that's the ASPs up dynamic global when over? that seeing Or that Android? or into wireless low And hold investors really starting worsen? and Or ASP questions rolling is get the your those last seeing moving you is high-end, unit now in are been

the Cristiano. question. ask is some This going going data. I'm Matt. to start add Akash to you, I'm also Thank to

the in what of prolonged combination which has the kind think China a script, it's as it's of as I headwinds have we to And and smartphone we mostly the handset there markets, been has of really weakness detail demand, the macroeconomic major singled the can we is tried China we -- down is seen as to in the and So consumer related as also story. basically that a out the COVID factor. in market much

environment. supply-constrained The you the situation a and lot have you demand issue really, that that's big is a we've that issue about, been of talking other and had

So policies. than and the uncertainty, with When during different get level got you the situation trying much higher inventory that resolved, then of board supply companies constraint. across have the a to chain you to was it inventory bring demand macroeconomic drawdown a

-- tier are levels as premium as on That is well we premium the customers hit their tier. adjusting to starting inventory basically as

increasing see However, go we're for to we're to increase processor possibilities premium actually for next-generation positioned very tier. we we as the actually ASP and content, because well

If Apple it. every you take I Qualcomm say the has premium-tier update, content would device on

customers. Chinese is content and increasing. is our Of course, Snapdragon the across best And Samsung story the

up. going add? ASP anything We would expect to Akash, see you like to

Just regions. quarter reporting question. September weakness maybe first licensee across Matt, and your is through saw our quickly, tiers we the on What in

all the case. was be is as ASP strong. increasing and tiers cut content -- the margin across that's as that of then case. through able upside the to in we it And it and what December on in foundry projecting And the us So quarter Cristiano And price said, on in clearly, we forward also, side, are years then manage you've that then we'll have opportunity of increases, last seen gross keep couple well.

lot my follow-up, year next the a year, ago the beginning But think did the obviously. year a change in the A you fiscal Apple And As the I lot to having of business. you guess and less about EPS different XX% -- fiscal extension at variables a correction, you volatility us were much that, or better Akash, maybe year came more company. I than different you XX%. the the last a and of at now, inventory of for call on environment, growth talked obviously

any you there If next have about appreciate we'd it. think about we fiscal the should how year, really thoughts

Matt. Sure,

the at -- current kind are quarter, factors trend. recent inconsistent look really you that there first with if are X of So

seeing first really the primary within in is inventory The And are $X.XX drawdown quarter. this one that's is that quarter. of the we Impact that approximately the impact.

there's course, the a impact bit that weaker well. environment market as of comes in Of from little also

inventory not for take drawdown, rest year, first a that challenge that the a So as quarter it's clear cyclical when And OEM of were that's issue. forward long-term for that It's see the the something you very couple in we quarter the projected of a we short-term impact us. issue.

it through So project that year. the you should inform how

side, the But that fiscal the to see if market our the through we'll of as market that market this And Clearly, upside. the current in on point, the plan uncertainty the then is at market. the point, based planning on weakness given this lasts year. going scale at improves, we're assumption

So to we of inform hopefully full you for second that apply framework do quarter kind take also for should if year. expectations and the current that and year, the the forecast the how

JP Samik Morgan. Chatterjee of

I Akash, had I bit on two can now well as if guess, color. I IoT, provide smartphone. well. revenues start can smart you if sequentially. mentioned I wanted And as moderating a more And so see you guess IoT I to

X/X, edge into the networking, previously You've roughly sort sort broken business out of X/X. IoT calling it consumer, industrial X/X, of and

as projecting there? see I terms start we have to of And seeing of there, now about sort weakness? Now follow-up. are more really of of some And you different where moderation we subsegments how the that you of more talk resilience a sort in sort maybe can And the sort should be trends versus forward?

Sure, Samik.

played the we're So with way on for out IoT, pretty that has us. business obviously happy

of at So then to for 'XX. gone record $X.X $X.X we've in a $X we reported billion was 'XX quarter And from IoT billion revenue. in fiscal the billion $X billion, quarter

business So doing. is pretty happy with how the

overall, of it's Qualcomm, Now the of with And some holding it's definitely the We're overall seeing Edge about environment impacting market and we're industrial. impact macro ways less consumer in on in terms weakness the for seeing is handsets. IoT of and networking macro the pockets environment. minor synonymous some that us. about in

cloud. about it's back connecting for But IoT is our that. you perfectly overall, industries And do our to to kind look various at everything and of portfolio digital us, where think opportunity about and step to suited exists, when enable I technology transformation the

we longer term. feel So optimistic pretty

Okay.

for use think smartphones it volumes handset sort more sort to think pushback I Cristiano of is market. of even in sort buy -- of from follow-up, consumers generation out, affordable as my price around weaker Akash macro to continue Snapdragon previous the setup, to mean, Snapdragon much investors that help a or to opportunity fiscal around about the you trigger get -- sort really A make the of and 'XX for that to content both talked in chipsets could in the around as we of market. about And OEMs and sort lot the of and in I volumes prioritize particularly opting Okay. drive to market

assumptions of market gains you are to of able sticking and sort mean, or equation your think gains the I a to comes OEMs confident the share planning when sort chips about when be what 'XX, content not it generation prior to few fiscal how to optimize here? of just price/cost

Thanks for Samik. question, the

next-generation product about the it's a you premium we Let we expect especially market, flagship is activity design start a on Snapdragon have answer. not that. direct showing by every tier, in me the for It's that, giving mobile showing The year. as

we're going Tech couple our traction in Summit and weeks, in Soon, think very our very, is high. I design Snapdragon next-generation of think announce to a I

positioned. I think is, see what now very well right structurally, we're we

If the change you how in with I the the inventory. that and term landscape to deal Samsung, we're the market and see size the on fluctuations look positions have agreement just of device, the short we plus of premium we how OEM going Snapdragon of the high-tier think China as in and

assume But mobile is the thing product to that you market and to have continue should going do we're going to transition. cycle a its

the March of the also in of increased benefit expect to share Samsung. our We see quarter

Genuity. from Walkley Mike Canaccord

assumptions both then for fiscal on shrinks fiscal now. the them with environment expect again just digits more the 'XX. I'll market for Do that follow-up, a calendar you macro 'XX? from Just by as the planning double And handset 'XX ask

expect get is or level? slower of this an as of off more area flattish In you into you down seasonally kind this quarters sequentially, OpEx that terms with cuts the OpEx

Mike, it's Akash.

we're carries to market weak in kind rest of that seeing our quarter fiscal 'XX, the the September-December 'XX. For on market is assumption fiscal the of the

really kind scale using 'XX not forward. but half we're say, the of market the the as the current, of first so carrying basis calendar And

assumption. assumption that's is So our clearly, unpredictability and planning it, variance that's we're the using base And around there now. for but

deal we're the headwinds, that clearly taking on this is we control. action side, OpEx On things the short-term as with we of

Cristiano mature on then we're optimizing As a handsets businesses, our mentioned, our obviously then is investments think And reducing in and We're below strategy 'XX exit freeze. which it to way about rate. expect diversification. we come in implemented including spend will and SG&A. finally, IoT, automotive on of 'XX hiring fiscal the run the And focus R&D we've OpEx fiscal core is our to increase

So we're that on perspective. OpEx clearly from taking action

Bernstein with Rasgon Stacy Research.

a March want I about quarter. ask bit little to

that flush inventory couple So of the you're a lasts saying quarters.

more You it December same is in quarter. chunk in ramp Cristiano starting good that's incremental like just in said volume than of still coming a done -- you time, half there's It at March. the March. But talked about seems also to Samsung the

you we one about changing just Is think How offset -- said in some things? it's seeing big that customers inventory X it sound of channel still to Samsung do Are I the those China. doesn't to is that mean of it Is enough of customers? March? volume big plans. like the those their isolated -- flush we're interplay some of are Samsung

like you And to of negative, can drivers, those they're a us give some then anything would have Just helpful. be about going both I as positive market follow-up. the and

It's Akash. Stacy. Sure,

for would of in the March the perspective, half benefit launch the So -- be from phone in the Samsung of you're a quarter March the quarter. kind right, the new from second

share up be to global XX. that of end GS share an GS our XX quarter, XX% from in goes the will but whereas towards in comes it So advantage, the in

it. terms you of I inventory heard you're right In the adjustment, think way

You quarter, and more $X.XX the have it's than an half. impact first in of

and it's impact the then it's across whether last that or some expect do from we quarter really And well. to industry. going as the second into adjusting others your just Chinese inventory, Samsung So on question have

Right. That's helpful.

to follow-up, rate. the my ask about I QTL For wanted run

bad the be must get big unless It market quarter, December. weak. Android So the the And going December should that that is But I there's stronger presumably, market in implies of the than Apple be pretty on. usually, rest something else a gives really into lift.

of down? nothing used billion verify there's and just So it million issues else on, XXX that's just to like $X.X Is light. going be you purely anything it around driving collection about sort I the Android in rate that? market-related quarter, think run or December no you're Can guiding

functions. market by nothing issue to mix overall. driven Purely with and It has other Yes. any do

things quarter. into December. December not Now the just highlight seasonal numbers increase for to of are couple point, the At normal QTL expecting in volume a this we

of So by the disconnects $X.XX on you numbers, assumption. questions billion those maybe or driven the have variance $X.X one X might versus between is billion, that

we an in million in have impact I'd year-over-year that's And our second, of then that's a on highlighted script $XX say do that basis, my approximately FX QTL. up shows I impact included in guidance. is

Deutsche Ross Seymore Bank. from

we generally guys side kind to gross want overtly margin go can to know you margin I I of is. into of things. where Akash, And side, the guide it don't the back but into

charges models So on quarter will people Stacy through there within a same the a quarter $X.XX their side going guidance, it likely sort first hit March fiscal progression the margin anything on the helpful. side. be margin gross just question Should when that of thing? expect there? for asked we profitability is the on onetime Is the would Any with on the gross work sort the snapback to of apply on side? that Because revenue

Yes.

direct there charges anything are your included that significant. of question, So on that's isn't a set the Ross, first, number in

So the that's assumption. base

is significantly And I really in where and at look we thing then with would say the actually where our quarter are in, first you guidance. fourth where quarter we guidance better our we the for quarter. fiscal guided is than second came had fourth did guiding we The if given line we

as years, look as increases way the at are specifically well. said We're over foundry with nothing So then pretty last kind And environment. happy couple we've navigated there. the navigating we I through earlier, through of to of the price

disciplined staying we kind the technology taking products and and on market share. pricing of advantage is the us for of side focus have our to So improve

the kind question. wanted didn't that being In mention just on of term, as I automotive side. a to follow-up, my down. near I as guess guess I hit you And X-part the

then -- too a is And going headwinds. that to deal will macro assume there's ecosystem across the that's broader up? it I assume it concern safe general automotive that the So with

have of I tech a gains York your at market all ton in day. know guys share were New you auto

that the ramp I pace that over you that at are you're year So seeing term. slow the evidence conditions But that of macro get any might the expecting -- longer or that so? all next

let should So component The first that next auto, have turning way design into me our give business. been the ADAS. then the that revenue. the you the you you the you think have after Then are digital about cockpit answer. -- telematics we have one those big and of was pipeline, And is a

So generate automotive to the if to want less Akash, pipeline and by the about you I short-term into we has materializing add Qualcomm anything. expect revenues markets. continue impacted the don't story been growth, of know,

as think I'll the new as launch. our about adoption solutions of cars revenue all of kind auto helps our say just kind and our business, you how of about it's car launches the

primary really size the driver overall market. So the the that's versus of

sequentially up first And to Just guidance. be the it will quarter? in clarify your

were to it's Our on which we IoT down. We that guidance said quiet down. and auto, for will be it implies handsets, be not was going

Joseph Moore Stanley. Morgan from

able think relatively you seems it like you inventory get the think on I allocation built a relative few build which kind of overstated that ahead recent did numbers just until do to a talk when kind be demand? about were was it of you ago. tight? of might would people were still in short months while wonder Like because if to you of that could time, build period inventory the inventory all say and Or that

Yes.

a it's fair question. So That's Akash.

happened things be period is with half then, But really over period macroeconomic if our kind a short went it's was the what of has second shortages So deteriorated, And customers since from you said expected a purchases think to declines. change an their in we of last about and to the unprecedented cautious we one 'XX. really we earnings, time. environment supply of demand of

in policy seeing OEMs now drawing making and to on change inventory. a And really that what you're down responding inventory and their is

So $X.XX. seeing that's we're sized quarter approximately the impact that that in December the we at

seasonality, If you growth December what also you the holiday think as going expect seeing season. inventory to build a opposite. we're And people the quarter the about be is quarter into typically

does come surprise it changed. of the a in quickly of So kind terms how environment as

the if competitive you China? that seeing kind described? then And same on as there up, of are I markets, Great. in the in Or come pricing more side situation? as supply a follow is of incremental could what out particularly you've competition you the Is tight

No kind additional comments It's just pricing a I gross what I answered factored. that and apply. anything to else, mean than said. more question I still really comments of of those margin question

Louis Miscioscia Daiwa. from

to of is that which this about This came and that a one on day, But out guys big you're Realize you difficult a to it And how really looking frame great, actually any I is auto time XXXX. you prior self-driving longer-term his just question. day? guess had just auto closing had the pioneers, talked stick the from and and be view. to comments Ford actually the the little ago out at originally Argo. while will change also they're down some ADAS news that that GM Levanduski, seems to

really our The Snapdragon really your We for technology commercial platform, the scaling should Thanks question, good. part ADAS to Very Level car. ADAS We're robotaxis, on we're way plus. still the a I not all think, Lou. every focused Digital think of future has to and for -- the way really market. it's and scale it's attaching applications. is think, X that I X still you the focused Chassis, market, Level about And technology we're from -- on

announced. all wins, of and for been brands that's think why our the the design across and key tiers winning I we're driver what that's has ones across we

of And levels the market. have thinking into revenues autopilot. all pipeline pretty few years. starting is. of to scale that we from multi-different the about as in-cap materializing camera that we're in they're That's to bullish And highway ADAS, the next the mandatory feel in where way start with about you ADAS part focused And really

Barclays. Blayne Curtis from

it ask answered you wanted -- I kind of if assuming Actually, again. this, apologize to but I

to in Android a terms through. Just lot inventory the of of has clearly, weakness, work

or baking concerns kind curious can such. been if you're iOS? in a it's Android for I softness Just customer the production way embedding what you're handset is about business, there any non-Android answer, you talk both but and and to a of tough there's know about

Yes.

the is about primarily think we I talked Android. adjustment

you it. think how should that's So about

Perfect. kind I TAM made RF I thought you a of is just process good And progress rolling for of of the curious, and kind on in big then penetrating guys, this lot the in you've a know was that. business.

through if thought starting walk you So back in of rolling just I'm next just of that the curious, kind year.

Sure.

when at cycle. we the development an handsets become the way look business, kind think into the handsets of forward, and in business driving already. and IoT. And WiFi look into we've that, end-to-end automotive is also we further the modem-to-antenna it's XG front-end X about growth in So player it's because you RF #X our but When of

of million. one we this a new win fiscal front-end gave, and In auto the have in then than see our in we front-end million. have of $XXX and within greater web RF you'll And in pipeline we we design $XXX revenue million of disclosures RF had slides, $XXX 'XX, revenue, IoT,

there mostly And So still, where getting think numbers within are becoming scale But to generally, was automotive we're kept separate. it those of it's and point I becoming it a IoT. handsets. scale. We -- at

the -- do we this change the And the thought revenue to was time streams in right so it. was

UBS. from Arcuri Timothy

one on is I Apple. had the guess first I X.

product. launch expect And but product. surprise, be to XXXX XXXX that you I by out did That's You used the you word in not the products, the that big majority the be update you'll you for a most people. in think, to vast said of of the you that now

So clarify that still will once a patents? said anymore you modem that need pay want they just I your still are assuming they don't you for royalty to that

This licensing Cristiano. them. The independent is supply business completely whether not or of is modem we to

your correct. is assumption So

strategy the don't we We we our I planning consistent long-term any past, expect we focused to our and have assumption licensing we're the to in and said continue visibility in on with to is just can modem have And what continue that think provide on revenues. assume 'XX. customers,

sort also, it the things I I model sort QCT revenue to the it then. changed you and was of guess $XX in year implying a At sort have out lot rate question a you if had were Akash, you I out the then Perfect. a financial a ran time, for of XXXX. And QCT. ‘XX, since implying billion growth ago, of gave know on

financial You’re $X next $XX that to Do get of confident sort can quarter $XX into now next $XX that billion year? year get run still a feel down like you’re billion. rating you would now more to the billion quarter, billion so model you back a that you

Yes.

I’m revenue QCT. we as $XX of you for $XX So know, delivered -- billion fiscal just sure billion ‘XX for

And so strategy our is unchanged.

We ahead are so far of well target. executing

now what environment. updates targets. our the is focused And current so navigating on right No really we’re Day Investor to

Research. Arete from Simpson Brett

are December outlook very the it extent for Is perspective be the the quarter. this ask fair the maybe helpful. I which wanted a and flagship I weak December quarter December, is about you fiscal to would we Qualcomm under-shipping the through as to any Qualcomm that just talked thinks demand And March quarter. for just the I in assume cycle? ramp in in think mean there look to 'XX Samsung with factoring trough

quarter see perspective, an drawdown first as Brett, the Yes. we definitely from bottom. inventory

As more we happened the we in first inventory quarter. drawdown, XX% think, than the of said,

so And asking. the question hopefully were answers that you

your term here a see Do a risks in particularly much does certainly that's business? that appreciated. geopolitics Or something scope perspective follow-up I you on would of lot be on the region, maybe there the mean Any just And for growth in it's is now? China. there position with happening How to China? Qualcomm is right long feel minds. investor the Okay. about

restrictions, -- those not into were question. our of seen those. by as auto the corresponding set expansion have latest we in China impacted see And we business for Look, to we we to business as We in expand, the IoT. especially grew well. China and Thanks in of continue

we position. have global I think a

XG. in stable I have think especially you very It's mobile difficult a when at think right we we -- position in about is that And predict one look it's one as pretty now. size standard, going this China market the environment. growth market. we're to will we global soon, that think, lockdown that's business that But positive with and on have end a hopeful from be the a phone to to opportunities. continue so strong of extended impact likely far, Qualcomm And the the I

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

to everyone, fiscal Thank fiscal to incredible to thank 'XX. and big say a us helping employees we want of all how the listening to 'XX you, navigate for our just I that Yes. call. you to and partners the are

trends the to this from feel you map. technology our cyclical well Qualcomm few A When the that temporary is positioned. drawdown, we to back and very macroeconomics a inventory lot continue comments. step point road short-term of current Just

script, with design processing everything You Windows and that at track, the is connectivity, for including advanced we see on we be expanding as to edge. transformation need our intelligence Snapdragon artificial IoT outlined continue overall as in term. And on the and long and proven in to the The industrial the auto digital well our resilient as custom ability the has CPU. to materialize IoT

So downturn or steeper we we impact and that than the we're underlying current if remind remain more a -- adjustment is the our to power on and inventory cyclical growth company. executing way, expect. that like will be But all decisive in managing have well prolonged the especially you our has the everyone no expenses I operating place. gets fundamentals much. And on strategy long-term in of we're so Thank the would earnings

concludes gentlemen, call. that and Ladies today's conference

disconnect. now may You