QUALCOMM (QCOM) 2 Aug 232023 Q3 Earnings call transcript

Ladies and gentlemen, thank you for standing by. Welcome to the Qualcomm Third Quarter Fiscal 2023 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded, August 2, 2023. 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 the including results or our statements. in statements. Please differ future business our of filings, actual make which materially or will trends results. our events, forward-looking contain including factors important financial differ also projected events could Actual forward-looking forward-looking projections and that SEC cause most those from to or industry refer recent results statements, business XX-K or to could estimates from materially

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

afternoon, midpoint recorded and revenues $X.X of delivered licensing today. we $X.X us our Thank from our In guidance. you, our from above billion joining for non-GAAP chipset billion, QX, our everyone. business. consistent share, the with $X.X per our Thanks non-GAAP billion fiscal $X.XX with guidance fiscal earnings QX and of We results including Mauricio, of good business

growth in revenues. also quarter Automotive quarter marked of This QCT our percentage XXth double-digit year-over-year straight

We and and and future automotive growth and in us are win enhancements pleased leadership our continued well with technology, product for positioning design diversification execution, IoT.

from across highlights business. now share will some I the

tier represent to our powered in devices continue to the Snapdragon Authority. Antutu Series premium X mobile Our set Smartphones the X platforms by benchmark Android according benchmarks top Gen experiences. Snapdragon mobile for

for We Tab and Galaxy pleased X Z lineup flagship newest the series. Flip, device are X Z SX will X the globally. Gen Galaxy The that power Galaxy again Galaxy Samsung's Snapdragon also Fold

and new a for and capabilities mutual devices. for top-level underscores Galaxy fastest professional-grade experiences, Samsung desk features, Our standard This experiences defines gaming commitment premium AI productivity computing Qualcomm in ever consumer flagship Snapdragon more. mobile launch smartphone delivering enhanced to Samsung's photography,

extremely are successful proud partnership We of with Mobile. Samsung our

to The Snapdragon of mass announcements experiences also for XG platform to migration, Gen mobile extend redesigned XXXX. reduced help to the Snapdragon We're premium will to experiences XG especially device smartphones. drive new pleased XG X market forward looking second are in We prices to half deployments worldwide. XG at in bring

digital China, Snapdragon more we as the strong OEMs, Qualcomm's In growing product leadership. EVs technology a in automotive, Suzhou, with Automotive at the automotive media, and automotive well partner technology especially than as position analysts Tier broad in Xs, X,XXX ecosystem attendance. as hosted demonstrates Summit partners, worldwide, event and officials our first The participation ecosystem to government chassis

We more XX digital next-generation designs cockpit leading also and than the with for systems. won new globe automakers telematics across

Snapdragon comfortable their and VR recently and Quest MR Oppo helping Developer the by developers growing China. form resolution slimmer, more to XRX. ecosystem MR drive Quest a by platform Consumer Meta and X recently XR collaboration In features the Meta with reality virtual first is the next-generation headset X the the Snapdragon higher in Quest powered to be developed IoT, performance, -- Xx graphical announced We're factor announced the of X. powered a mixed Edition, Glass in also than Oppo

WiFi information Snapdragon X at wins. in Orion with in engine CPUs our in design AI significantly momentum our sharing readiness. In to networking more forward customer We PC upgraded for on track next-generation integrated IoT, And Summit look to custom a compute, gain October. platform we remains commercial continue with

platforms. on retail its Qualcomm indoor scenarios, X business and WiFi outdoor by routers spanning new TP Link and based deployment X lines example, media expanded an all As small networking launching Pro

pleased very upcoming share India. access XG have we're FWA service solutions Reliance shipping of in we to deals fixed our in begun that support wireless Lastly,

a platform we provides and devices In across at calling health of products care video video choice our enabling across OEMs collaboration deployment Linux family, launched video to the videoconferencing environments. suite, conference industrial settings Android the ability and which customize rooms, immersive and conference IoT, diverse and on deploy design with platforms home offers flexibility and friends Windows, for and

industry-leading Additionally, and suppression our platforms noise AI-based dynamic framing. offer

solutions We enable our robotics, gaming, panels the devices first point-of-sale cameras, solutions drones, Hannover Messe. also XXXX, XXXX and software-defined QCS cloud industrial next-gen more. QCS launched handhelds, IoT at smart and These

to Lastly, edge Labs, together AI to of adoption in our IoT accelerate since aero and we customers to across increasing with an Arrow help of last edge call. AI we collaboration while of center alleviate variety designed on Edge a update progress development strategic an have formation a adoption the AI Generative the challenges announced Electronics, excellence

end capabilities of pleased cloud acceleration AI presents Qualcomm our differently rapid very We're encouraged the and evolving personalization the markets. security, available context, a are edge at cases reliability edge. than immediacy, on device. for Use application Gen by the across inherent at significant opportunity the and given the This privacy,

and For enhanced user in for changing user also can models handsets, creation experiences assistance. Net such example, interface models content in and virtual the photography. language enable embedded as Control Stable Diffusion Large or

will the for which virtual and and significant We occupant well enterprises the use and very AI productivity the In services some are industry industries. personal bring creativity, computing, capabilities compelling and and real-time enhancements of benefits language edge driver of to curated contextual believe automotive across copilots AI to models personalized and content from search. most can monitoring assistance for large advanced understood

be ADAS and of word expect more. industrial this and perception, and XR, and real We're helping enable by use cameras AI edge to to combined capabilities for enhanced drive cases path other IoT. networking data from sensors applications and prediction Gen extend the fusion can autonomy

XXXX. Llama smartphones create beginning that new with AI exciting enable collaborations Within the ecosystem, hyperscalers, PCs a AI across X-based applications in on developers Notably, our using Snapdragon on announced are we Gen with to Meta multiple ISVs. flagship and quarter, OEMs and the will recently engaged of we AI expanded implementations the and we collaboration capabilities and platforms

execution Meta, to of working the large directly X language models optimize we're device. Llama Together with on Meta's

We Microsoft bring focused enterprise also AI to a devices. best-in-class across collaboration capabilities and experience industrial with AI consumer, and to users announced scale

our large a Build laptop. own Stable Microsoft Windows working Developer showcased the with on with applications power multiple of models At was the also Diffusion, Conference, We're enable productivity-based Snapdragon device, on them a to running device. on host

platforms. AI SDK our collaboration, this accelerate to developers of available AI compute part to their direct is now Snapdragon Windows engine apps on easily As

In positioned AI on on-device opportunity. Gen uniquely This upcoming marks we to and capitalize are significant summary, milestone. a help the shape

differentiated device, computing heterogeneous a CPU, processing pervasively more look our highly sharing forward about AI and believe is NPUs unparalleled technology best-in-class AI power products our capable with Gen a will continuously to on AI requirement. GPU We multibillion AI in Gen at low-power Snapdragon high-performance, performance and and our we run Our parameter become models across And NPU. efficiency October. Summit

call capital executing over like and the update our turn an our are I opportunities. and allocation Akash, provide on focused managing We current future we I prioritizing growth to strategy would on and our business remain resource on how to macroeconomic the Before diversification environment. in

we'll a wireless long-term market, positioned ensure additional low on across focused deliver maximum To in we be view connectivity, processing all environment. and proactively leadership high to and cost maintaining Simultaneously, conservative value we're power margin intelligence. of operating to for uncertain that actions while performance, is the Qualcomm technology taking taking are artificial targets, end, stockholders well an

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

which quarter third everyone. revenues good and QTL start EBIT afternoon, QCT Cristiano, margin with billion of billion fiscal reflecting above slightly the was of of $X.X of revenues our of midpoint and billion of guidance. and I'll you, $X.XX, and recorded our XX% results. of of EPS with the delivered XX% EBT non-GAAP were $X.X Thank global $X.X We midpoint guidance. and our lower-than-expected devices. revenues margin consistent

the $X.X digital of landscape billion, of continued customers. saw for we have and increased industrial Snapdragon revenues momentum outlined. Handset previously in million, revenues $XXX IoT our of IoT X% We chassis growth $X.X to year-over-year. products revenues industry with reflected consumer by a automotive sequentially XX% driven billion

expenses at operating sequentially flat Non-GAAP $X.X were billion.

'XX X% commitment exceed track have rate. cost fiscal exit 'XX executed actions to our and a to our on We relative fiscal successfully of reduction are on

for the During active business Magna completed safety was of to Veoneer's proceeds cash $X.X sale net of the quarter, billion.

Before turning XG, global I'll on units update fiscal inventory. guidance, you to XG channel the XG, handset and fourth quarter

environment continue in and going relative We a growth to single-digit XX macro recovery down units 'XX, in will season. be estimate handset that units high at slower calendar forecast the the to handset into reflecting holiday contemplates This China. calendar a least percentage

customers that the difficult timing remain the conditions. through to end weaker to elevated IoT, demand driven operate of inventory by sustained recovery with drawdown a the be inventory and it remains dynamics assumption year. In we the Since factor purchases, a calendar to the will under predict remains continue channel cautious of broader macroeconomic due

guidance quarter. to fourth for Turning the fiscal

EBT We to XX% revenues billion is consistent slight by the of guidance of global revenues of and customer. modem-only XX%, $X.XX are purchases a our billion $X.XX $X.X primarily revenues billion in $X.X with seasonality to handset margins in billion to of In units. QTL, This of we handset $X.XX due margins EPS $X. billion to by forecasting of $X.X to and XX% QCT, non-GAAP QCT to estimate and billion to muted expect forecast we $X.X XX%. sequential revenues EBT prior timing of of In a driven increase

with forecasting double-digit automotive. sequential be revenues to Android flat and we in mid-single-digit a On roughly basis, growth handset low in IoT are decline

third operating expenses the expect we non-GAAP be Lastly, approximately relative quarter. flat to to

QTL sequential our depend handset drivers In fiscal fiscal customer. recovery. units global largely a China 'XX, growth As growth. of macroeconomic we approach modem-only handset by and X first revenue quarter, expect we and environment, revenue launch will the seasonality on

in couple in years. the expect seen In we've automotive IoT the revenues, addition, decline last seasonal consistent a we sequential trend and with of

Until not framework recovery. additional actions you communicated continues operating improving previously we evolve. fundamentals, assume we immediate sustained environment see as an As had we the recall, our to would of does evaluate cost signs will

to we from our proactively begins of fiscal the position actions Despite investments hold. fiscal incremental industry emerge 'XX. first priorities to 'XX. take be strategic recovery to actions, our in we This discipline, ourselves stronger and commitment broader Given the completed operating we additional in cost the will have reductions implement to the half as will will successfully in preserve these

In low-power edge. on remain focused on high-performance, AI to executing computing our vision bring to generative and closing, on-device we the connectivity,

-- to stockholders. the growth Our guiding prioritize principles diversification technology drive and accelerate our same. leadership, create for value earnings remain

This concludes you, our prepared remarks. Mauricio. Back to

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

The Cowen. from Matt is first question Instructions] with [Operator Ramsay TD

little on now there December give just prepared guess and question, kind bit quickly. I script through of pretty first color few us a to were you went for things Akash, enough in your a my

could handset you fourth and And trends for Maybe quarter I few. being better in auto handsets you some us, that just expect recap still talked versus the about going market, calendar So you in the part double-click the particular, dynamic. in IoT that to wanted the burn but inventory was be of on a you seasonality gave. to in

that little inventory So the detail, are effect a through the do bit you Or from for still the in of if into the in Android you prepurchases think an are estimates? kind industry quarter? quarter? magnitude an Cupertino the built you that December more What's expecting is could burn fourth just dynamic? talk what your And in

Matt. Sure,

there. I'll a unpack So it. to in lot was there try

divide me parts. it into Let

starting first, with market. So the

perspective, holiday season. growth the December the does quarter typically go going with From September. growth historical significant into consistent sequential December years, drivers X into forecast of assume as Our financial we from into a have we

and well. grows as QTL, market expect to the growth that is we First as see

a we expect handset we September, is have growth well. launched by second that in then as to base modem-only of customer. the And see Off

quarter. be So the those into the growth would drivers X significant

decline From you slight perspective, the of to seen December. from an both at years, IoT September couple trend areas look of in quarter-over-quarter a we've automotive and if last a

goes the in we just in something past. So out, beyond normal seen the the timing It's play we've will think that. a seasonality not same market that that just

no our material and comment last assume from the quarter Huawei. September I'll say revenues for December is Maybe forecast does

have not a license, have a material any Huawei. for revenue we we do forward. and aware, into assuming going We are XG you As shipping license are XG not

So different hopefully, that parts. covers all the

from is JPMorgan. question with The next Chatterjee Samik

think just a quarter a we some you start sort I between had to have there. the color of are as prior more recovery a in quarter can that well to it If the Akash, fourth years? in range. you couple, thinking but seasonality at as digits. well about about, number if smartphone had. that of with mean XX% of as terms somewhat calendar outlook maybe look you I in of double -- bit I plus the of you you volumes. the seasonality said see you if years We in How relative in your December give in prior a back the a higher comment Maybe typical can somewhere wide terms us in

Yes.

comments what maybe to just I no additional Samik, So said.

at think QTL history, I in market, the we look our the if you growth see it. grow with smartphone with

expect to customer say I'd the side similar seen similar a And to the something similar then probably so we we've And we'd modem this gain as in on well, see what past. year.

as a going it to forward those X reasonable way So for it I think way factors. is using of model historical trend a doing

Okay.

perspective think of for about about write-down about continued think recovery to should the we about is discount balance sheet inventory here mean, come my a for How given some drawdown sheet or risk duration? period are investor's And Okay. sort the the has a the of if follow-up, sort longer-than-expected down an balance for should how the I we to even did bit, the but that how clear of or thinking the inventory those a inventory you opportunity on time? from inventory obviously, drivers of sluggish

Yes.

there's think So industry, the got It's reflected you planning with And the it. on what that with overall demand our market. that inventory Samik, to the the There in understand lead weaker. months and balance. comfortable X we're long we for drivers parts. We the for analysis you're obviously, time, different is results. lifetime a our the And being inventory it, is industry have us on will right is

is So the topic on our latest results. our analysis reflected in

next Mike The with question Walkley from Genuity. is Canaccord

given Snapdragon about talked X that make Great. do Gen looking imbalance on uptick How of you demand Android And that? downstream terms be you Cristiano, the that XXXX customers in is I gain the you Android? at supply-demand your to move able share talk the from think, just in want for now as you'll initial to about.

Mike, thanks for question. the

What to it the So now to let market we like the Gen of next is with wave XG start just X. the migration. needs me Snapdragon X it insource, drive about XG

Redmi at just an as India the smartphone Xiaomi launched XXX. XX Just at example, ASP recently XG an yesterday USD in

So we're now this with XG XG to encouraged the to create ability very migration.

developing migration And pointed now constraint I our number road that drive we deploying think that the economies. XG year. don't you now And those XG at there markets as points. price new are a supply anymore and encouraged are map, product of to about out, have at to XG last we're the ability

Just that a follow-up, better us update segments than terms of or just Can the any inventory give of X on on the the provided? or doing the segments believe in quick an just outlook you business. you the IoT others

Sure, Mike.

start I'll add can Akash. maybe of top is this So and Cristiano it. on

what same from side dynamics impact and the the term, our short inventory demand of the seeing with has the on through the come -- some peers inventory. in is So as channel IT a business seeing you're it

started weakness, we happy but especially saw as other we're it to the with June the in the results pretty well, see go IoT When had consumer, parts initial did we with across quarter. of China. within it we But

We predict inventory did through the would are approximately to industrial the of calendar drove was revenue. on up it But Difficult IoT that very the be the say kind that side. on for term recovery And drawdown. We framework consumer a the of X% and short across timing of year. really it the factor that's that growth and end benefit.

times, things only the they that our we some add, of Mike, things materialize. have to there's there thing lot segment. those in are I to multiple a of And yet going as IoT Maybe was indicated

excited space, ecosystem. custom of We're about We're new which the the beginning our players we I still product other CPUs. have developing we we're think our talk PC develop our which been virtual ignite about by market, now encouraged with the entering will reality. in

We that like networking. lastly, new future. in materialize a WiFi win the think design I into X And on cycle could the pipeline

So outlined, that segment. different we things a of as there's number within

with is of question Research. line from Rasgon next Stacy Bernstein the The

Hello.

I implied tip of bit revenues the for us margins. up like margin September. give guide the sequentially stable drivers ask quarter that. to maybe reasonably They down. seemed with Can the into any pretty a about seems wanted They even were strong in seemed about Sorry gross pricing mix? you feeling they

that dynamics think should forward? You talked of additional if expect some there? should there on we don't in Is to about cost that there's know other evolve? drives some it of dynamics. how going I things the there that it cost anything we about? just Are mix side. goods the And

Akash. little from a forward than way the Yes, going September It's mix a forecasting primarily was September in better a flat going driven as did for really that's Stacy. margins guiding quarter, into we reasonable Sure, of our And we're products. June. forecasted and approximately come it bit well. by of margins

in range forward. expect we So go be as to we the

upgrade If going I more and you AI forward? a more contribute Like that think are they an about Or venture lot it cycle? adoption going happens? How model to briefly. Cristiano, model ask actually how how do as Or ASPs talking less chips is than the that's that otherwise? contribute. it AI anticipating the fall we the would about drives drives actually you're could one does for Like to how content? is

apply And personalization. on AI different reasons Everything AI, all real-time devices, is can cloud. the a very happening On Very context in the think confident to that end the products I I across And we're edge. the markets. good. is what of always-on of of think at answer number question. I developing we Thanks first Look, our think the reliability, see bit to there's little a will for I of that question, latency, unpack all, Stacy. AI, device,

we new to the about at products with all the if come ways, right? use you changes going products happen, that think Taxi our GnAI-capable on few is prepared all new phone it with market. happen of are that that our on were on phones, that to The Septran will X think monetization an We will the in it in partners segments a have auto announce cases the going set now us. easiest to we and IoT. computing up way working When And remarks, smartphone, the be are of mentioned in and are other AI-capable size the a customers of products the

create could in between changes the It mix our lines and and market, upgrade increases. cycle size of towards an XG the and XG, also the product improve ASP

For on device, you what our that's And NPU. doing platform. you device, computing to we been do a Gen have need AI different with

I think power. high-performance of and low it's ability pervasively continuously probably a by and the peers our AI any unmatched to do

And changes an could but things we the those our we the inflection mix point it look, products. the and see can to hard create timing, how ASP in improve as predict

from question Deutsche Our with next comes Seymore Ross Bank.

question, I follow-up. just have one one

On you typical is seasonality about calendar the things soft quarter? fourth talked that quarter, Akash, December its and/or What customer modem-only gave, typical expectations your in seasonality guide quarter. the fourth of in Android for the you having quarter side that your

Yes.

So trend we expect Android to be from the perspective, consistent with quarterly an history.

new in for Android the typically comes the as us what new in and at happens tier premium stronger out, look that's quarter that's chip you in typically the us. quarter, when If and chips launch the March we for our

it's timing of really launches. So product driven by

look Android, to within from share our even of 'XX, actually we've you when within 'XX position at But fundamentally, 'XX. sell-through grown

the business. that's So very cyclicality and in strong continue a position, the the dynamics kind to driving be it's of in just market we

talked side. first on of more actions Akash, that? 'XX And were equation. of any the side take being you, macro you my to uncertain, Could on things, I us the so assume on the I the side on going as of you OpEx and the fiscal in you it's half guess still largely about year OpEx with sticking follow-up, color cost give

your exiting in cost-cutting are expectations beating can have on successful for it in versus quantification plan? what guys if year this reduction, been provide of sort Any your new You OpEx hitting that X% last. not you

Sure.

at let don't point. as we'll give we're But set. said target quantification environment how of So exceeded thinking continue you before, framework I the me it, the we to we 'XX, and the at And this reductions evolves. additional in look have we've about as -- we've

is So implement 'XX. proactively given half planning of additional first that what in actions we're to do

for to AI to especially We're framework we're priorities. going our areas, in continue the is preserve And technology, capability in diversification to new plan. going certain strategic also our then in to invest but the and it reduce have invest

portfolio as consistent So an get our priorities to the going forward effort with investment for it's right company. really the

with Our the Caso next from question is Wolfe Research. of Chris line

Yes.

was year? if As now perhaps where a compared during about could last times mix you has skewed there's obviously, the mix, a talk where higher bit constraints supply sitting your greater question, mix first of And as is and availability. to it

margins affecting that is and how revenue? So

go shifts the how tend change some things of become perhaps bigger mix as as portfolio markets that mix. part that matures XG And forward, cycle as to do lower the concern there's guess end a to emerging the you of I and some XG down well? expect to

Chris. It's Yes, Akash.

comments where bit, reflected I Stacy's you at the through mix already tiers really expanded made change, in in it's question the year the margin. and to on the earlier lower we If it's position a our look happened gross

what incremental to So comments said I really no earlier.

the demand more of And content. look as ASP it's us in with for forward, in capability becoming terms one of see is presence edge drive going so and our to expand devices to there generative tiers forward. to inflection point the our chipset. continuing opportunities an Cristiano's earlier for AI in critical really ability going across do just expand how all As we're we incremental the we key to point

That’s helpful.

question to greater in macro to hearing China in particular elsewhere. business. been revenue we’ve follow-up the perhaps geographic And compared as handset concerns a about Just about

Or to China back What back be a need the to getting improve come handset market a the more in other is trend. normalize? of situation terms to this normalizing In to get and words, where mainly global normal? it what was. used needs where see business Is global to of and back to we once

couple a say parts. I’d Yes, of

weakness areas. other and across held. China developed it but some is seen not In smaller largely much. Those we’ve definitely the There are So impact X emerging is as markets, markets.

opportunity the board. really the think is across I

increase from I forward, normalization rate think X an cycles, things is emerging overall could return also driven you China, technology going but see that within new just and by stabilize. as of perspective, replacement see markets could you some in demand the

those So would opportunities. the be

Just we’re in to giving this at point, be be the would guidance that are we that clear, upside not plan. including and those, our to

Our next Brett the is line of from Simpson with Research. question Arete

a Akash, some near-term smartphones. peers I near are fundamentals of on reporting mean had I question your smartphone term. better

and quarter, in also Qorvo MediaTek's think they September. has the about a X% growth September quarter. uplift sequentially they're I -- talked talking in smartphones, think I in in were quite up And mid-teens about significant June

some And just reconcile guiding? said you're weakness in what Huawei can and they're is with just on structural going you QCT, Or volatile work? and peers in what more elsewhere patch Is I know the guiding you smartphone through you think is it there's a And business? maybe it orders? but of the Apple for something can and you home there really

second And for Cristiano. a question maybe

think about this and I didn't calendar because you this Has business Congress assuming year You relationship you should anything beyond we XXXX to orders And think how orders at have with regards were actually 'XX? talked there. no changed World Mobile earlier Apple that new Apple? in

Brett. Yes,

first question. So with start I'll your

in let keep parts. me mind. comments Android Apple down it in If and X Within into Android, to break -- you two

been we players is there significant First any think the months. shift the share between few don't over in last has

share within Android. you we've at as total share mentioned earlier, 'XX, relative 'XX sell-through However, what to gained look when our has happened for is of actually I

year. we through the continue are which around to a play launched and tier, the really the premium have reflection they a the which strong in, center high is versus midway season is kind which of Android devices the of tiers and holiday position quarters when and the So we very across seasonality for

would about I So that's how the Android market. think

timing purchases. as chipsets Apple, the year. additional We to see expected we muted quarter buy in fourth before, seasonality On chipset the the earlier them I've said due did in of

the shipments are we quarter. what demand, so expected expected And into next is forecasting now

it's to So trend. some -- really rather timing that than fundamental just again speaks

we know, new of to the question. be not a really the share in you majority it's a launch, share expect upcoming and As so

the any XXXX. are to support Brett, making iPhone to for updates your year, going second prior that We're the to for not our launching this is modem. plans question, we

Our question next America. of from line Liani, Tal is Bank of

Yes. lot also give we why the on expectations? two Auto Auto XX% market seen what I you market, XX% XX% have But versus about grew before. also have than handsets. an it a Street Can spoke questions update weak. we was related. this is lower

there? So can you trends talk about the

year. was expectations, XX% a but IoT declining it's in with line still

the quarter? of the So the just what was the throughout there? throughout Kind trend was deterioration quarter is what was or it the over on And improvement intra-quarter handset side, I'm trend? wondering if there

I I understand. understand.

really with had line handset side, what On expected. the in we largely

other. So actuals, no expectations. below in trend one way Auto, our came or our in the slightly

growth, guided see double-digit for you we what quarter-over-quarter if However, growth. we're quarter, the guiding low upcoming

So it. quarters just between the timing that's impacting it's

comments with and the in really demand consistent well. what's impacts reflected say our it's earlier peers overall Within what with environment and the on seen consistent IoT, it in how is inventory numbers, some very as very have call, of I'd our impact

And on clarification you something said. Akash, just a

normal to define inconsistent. sector? to normal. -- it's line do you at with December speak I said What and for hard very seasonality look the tried about seasonality. how be normal in It's should You seasonality, back that

down parts. break it If you into

look and size. as consistently at total think growth, I seen we've market grow a you QTL of devices QTL result mix of

one. be would that part So

customer. device we've the of is a market launch second to flagship grow the seen handset The due a primarily by modem-only

And would so well. see we that as

the December would that are factors into our the growth majority quarter. those X a of drive So

the Our Timothy from Arcuri UBS. is last question of with line

had I X.

provide can more you just if color wondering headwinds. channel these I'm Akash, So on

it's $X number, was billion gone a And gone. not then and December come supposed down March. billion Obviously, that supposed it by was I have gave $X came in $X been think, to You for June. to down or to it billion

talk, down? still then second Can handset the as is? you handset is at Or a I your being that component sell-in And And also kind of had headwind sell-through? customer inventory maybe is above question the what that coming quantify is still well.

Yes.

So channel beyond total when we we us. talk about across inventory about talk inventory,

customers mean, the than through as meaningfully year. headwinds both going the year, been I So fiscal expected we'd and channel into clearly, higher gone it's we've have the combined.

So reflected in that giving. that the updates we're is

our we've No to view well. our overall market position as about fundamental and change of share talked

numbers. impact just We those our don't an We've since the been factors the the the how call. market about same the total it's would much total changed through factors be. But that So running size of through last year. have we've it's not talking estimate updated

And it. then last just thing. Got

on that So do has the market? you market. seems new affecting the have gotten pretty any it's data Android large it maybe It and refurbished

do think -- of it be seen Could portion mean, range, that. Sort of unit handset $XXX the million the year TAM refurb? I we've something numbers what used this in you is like or

So the new you talk bit. market that? down is but really is phones flat Can market the actually to quite actually a to for down,

Yes.

give the we're handset the on So It refurbished the of we last couple the we refurbished the global phones. same data about unit information, over market, have not you talking the phones. do years. as when has grown

are new phones. talking We about

gave. already so guidance we into And it's the factored

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

our employees, just our We'd partners. thank suppliers customers, to you. all of Thank and like our

continue strategy, -- our the like We're key our plan. to think executing execute were on strategy. to I we messages

market action traction. have road can in of best when prepared focused sure like we control We And on make environment, just the on product the we're history. maps in our X we uncertain think we're the rebounds. current the and design things taking I

see to about And it, a on from on we as like new AI. Gen the inflection engine. is mentioned what comment before, I Last device, need fundamentally, point, new we you edge that computing happen a

have CPU, is NPU. which the We need but something GPU, you different,

follow Thank show I how to this Tech We're we're very I a October. like investing upcoming to think Summit been would and over it we much. performs, what very in and announce you have happy the decade. everybody for at going

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

disconnect. You may now