1 00:00:00,280 --> 00:00:01,240 Speaker 1: Smartphone business. 2 00:00:01,480 --> 00:00:04,240 Speaker 2: What's happening with Apple over the last twelve months, Their 3 00:00:04,800 --> 00:00:07,000 Speaker 2: core pace, that core pace of hardware seems to have 4 00:00:07,000 --> 00:00:09,880 Speaker 2: gone ex growth. Have we reached that point of saturation 5 00:00:10,360 --> 00:00:11,240 Speaker 2: for smartphone sales? 6 00:00:11,240 --> 00:00:13,760 Speaker 3: Do you think that's a good question. Maybe I'll take 7 00:00:14,000 --> 00:00:16,680 Speaker 3: a step back. You know, the phone market is a 8 00:00:16,680 --> 00:00:19,520 Speaker 3: big market, but you know it's a fully penetrated market, 9 00:00:19,560 --> 00:00:22,080 Speaker 3: and I think we go into cycles. I think we 10 00:00:22,120 --> 00:00:26,320 Speaker 3: did see in twenty twenty three es particularly correction. I 11 00:00:26,360 --> 00:00:29,840 Speaker 3: think we have to the pandemicgrate of blood demand. But 12 00:00:30,120 --> 00:00:32,239 Speaker 3: you know, we hit some last Learning's call. I think 13 00:00:32,240 --> 00:00:35,760 Speaker 3: the market is returning to stability. Were cautiously optimistic, So 14 00:00:36,200 --> 00:00:39,120 Speaker 3: I think we we have the normal rate of the market, 15 00:00:39,159 --> 00:00:43,519 Speaker 3: which is a replacement rate market, but this Genai transition 16 00:00:43,560 --> 00:00:45,519 Speaker 3: could create a new upgrade cycle and then all of 17 00:00:45,560 --> 00:00:46,800 Speaker 3: a sudden, we have a lot of growth again. 18 00:00:46,840 --> 00:00:47,360 Speaker 1: And we'll see. 19 00:00:47,520 --> 00:00:50,840 Speaker 4: Let's put some sort of some tangibles around this. When 20 00:00:50,840 --> 00:00:53,159 Speaker 4: do you see the smartphone market returning to growth? How 21 00:00:53,200 --> 00:00:54,720 Speaker 4: long will it be before we get there. 22 00:00:54,920 --> 00:00:58,800 Speaker 3: It's very hard to make a prediction, especially because you know, 23 00:00:58,840 --> 00:01:02,760 Speaker 3: you look at the market today and you know the 24 00:01:02,840 --> 00:01:05,480 Speaker 3: market used to be much bigger even when you think 25 00:01:05,520 --> 00:01:08,679 Speaker 3: about prior to the pandemic. We're not calling the market 26 00:01:08,760 --> 00:01:11,720 Speaker 3: number just gets in twenty twenty four, but we know 27 00:01:11,760 --> 00:01:14,279 Speaker 3: it's smaller than it was to be. I thing, people 28 00:01:14,680 --> 00:01:18,120 Speaker 3: looking at the current macroeconomic environment, they kind of decide 29 00:01:18,240 --> 00:01:21,959 Speaker 3: they're going to buy a new phone. However, however, the 30 00:01:22,160 --> 00:01:27,000 Speaker 3: growth of vector is really related to new functionality that 31 00:01:27,120 --> 00:01:29,039 Speaker 3: it's kind of compel you to buy a new phone. 32 00:01:29,319 --> 00:01:32,520 Speaker 1: And we just like today or tomorrow, I. 33 00:01:32,520 --> 00:01:35,320 Speaker 3: Think Samsung is launching an impact a new device, kind 34 00:01:35,360 --> 00:01:37,919 Speaker 3: of talking about Galax has twenty four some. 35 00:01:37,800 --> 00:01:40,280 Speaker 1: Of the things you can do with Jenai on the phone. 36 00:01:40,600 --> 00:01:43,800 Speaker 3: And as we get to the transition, I hope everybody 37 00:01:43,840 --> 00:01:44,600 Speaker 3: wants to buy a new phone. 38 00:01:44,640 --> 00:01:46,080 Speaker 4: We're going to have growth with it and we'll be 39 00:01:46,080 --> 00:01:47,920 Speaker 4: able to just go like this and that person that 40 00:01:47,920 --> 00:01:48,600 Speaker 4: we want to see. 41 00:01:48,440 --> 00:01:49,360 Speaker 1: Is right going to be over there. 42 00:01:49,480 --> 00:01:52,360 Speaker 4: I'm curious from your point of view, how concerned you 43 00:01:52,440 --> 00:01:56,400 Speaker 4: are about, say, Apple creating its own chips, creating its 44 00:01:56,440 --> 00:01:58,880 Speaker 4: own hardware. And we've seen this and they basically had 45 00:01:58,880 --> 00:02:01,760 Speaker 4: some issues with it long to their replacement chips, But 46 00:02:02,120 --> 00:02:04,120 Speaker 4: how much does that worry you? 47 00:02:04,360 --> 00:02:08,680 Speaker 3: Well, look, Apple has always had their own processor on 48 00:02:08,720 --> 00:02:10,840 Speaker 3: the iPhones. I think our relationship of Apple is on 49 00:02:10,880 --> 00:02:13,320 Speaker 3: the mode and we provide to them the chips to 50 00:02:13,360 --> 00:02:16,560 Speaker 3: make their cell phone connect with the cellular waves and 51 00:02:16,720 --> 00:02:17,760 Speaker 3: make sure you're connected. 52 00:02:17,800 --> 00:02:18,400 Speaker 1: That's our job. 53 00:02:19,440 --> 00:02:23,720 Speaker 3: They have been focused on trying to develop their own chip, 54 00:02:23,760 --> 00:02:27,120 Speaker 3: but recently we just renew our agreement with them. I 55 00:02:27,160 --> 00:02:28,919 Speaker 3: think we have a new agreement with them. It covers 56 00:02:29,280 --> 00:02:32,560 Speaker 3: twenty six and we'll see. I think right now we're 57 00:02:32,600 --> 00:02:34,919 Speaker 3: just focused on being a good supplier for the. 58 00:02:34,880 --> 00:02:37,200 Speaker 1: Next three years. And I'm going to give you my 59 00:02:37,280 --> 00:02:37,840 Speaker 1: same answer. 60 00:02:37,960 --> 00:02:41,480 Speaker 3: As long as cellular remains important, I think there's going 61 00:02:41,520 --> 00:02:42,880 Speaker 3: to be a row for Qualkom. 62 00:02:43,280 --> 00:02:45,040 Speaker 5: You've been pretty safe when it comes to some of 63 00:02:45,080 --> 00:02:47,840 Speaker 5: the tit for tat between Beijing and Washington. But how 64 00:02:47,880 --> 00:02:50,760 Speaker 5: are you looking at navigating that going forward given what 65 00:02:50,760 --> 00:02:52,120 Speaker 5: we've seen other companies deal with. 66 00:02:52,200 --> 00:02:55,040 Speaker 3: Look, we've been fortunate that some of the things what 67 00:02:55,200 --> 00:02:57,680 Speaker 3: we do today we're not in the data center. We 68 00:02:57,760 --> 00:03:00,040 Speaker 3: have not been impacted by any of the restrictions, and 69 00:03:00,760 --> 00:03:05,320 Speaker 3: in one way, as the peak of tensions I think 70 00:03:05,440 --> 00:03:07,720 Speaker 3: between the two countries, I will say there are business 71 00:03:07,800 --> 00:03:12,120 Speaker 3: actally with China actually increase as we diversify. You know, 72 00:03:12,720 --> 00:03:16,240 Speaker 3: our company not only into phones, but into PCs and 73 00:03:16,400 --> 00:03:20,600 Speaker 3: cars and industrial we expanded our relationships with China. 74 00:03:20,639 --> 00:03:21,880 Speaker 1: Here's my simple answer. 75 00:03:21,919 --> 00:03:25,520 Speaker 3: I think to that question, any company that has a 76 00:03:25,680 --> 00:03:29,840 Speaker 3: leading technology product and is a product that becomes very 77 00:03:29,840 --> 00:03:33,240 Speaker 3: important for the digital transformation of many industries such as 78 00:03:33,280 --> 00:03:35,680 Speaker 3: automotive and others, you're going to have a big business. 79 00:03:35,720 --> 00:03:38,880 Speaker 3: And Channel's just a function of GDP. I think we 80 00:03:39,080 --> 00:03:42,480 Speaker 3: have been so far in a stable place. We have 81 00:03:42,600 --> 00:03:46,400 Speaker 3: to monitor the situation like every other company, and you know, 82 00:03:46,480 --> 00:03:47,800 Speaker 3: I will continue to. 83 00:03:47,960 --> 00:03:49,600 Speaker 1: Believe and that's what I had said. 84 00:03:49,920 --> 00:03:53,400 Speaker 3: At the end of the day, strong commercial relationships between 85 00:03:53,440 --> 00:03:57,360 Speaker 3: American enterprises and our Chinese counterparts will be one of 86 00:03:57,400 --> 00:04:00,000 Speaker 3: the things that could bring stability to the relationship. 87 00:04:00,200 --> 00:04:02,960 Speaker 5: Does that monitoring get more challenging if we were to 88 00:04:02,960 --> 00:04:05,360 Speaker 5: see a former President Trump went back to the White. 89 00:04:05,160 --> 00:04:05,880 Speaker 1: House next year. 90 00:04:06,240 --> 00:04:10,400 Speaker 3: Look, we're just focused on our technology and we want 91 00:04:10,440 --> 00:04:13,880 Speaker 3: to have markets that we can sell our technology. I 92 00:04:13,920 --> 00:04:16,560 Speaker 3: think at the end of the day, one important thing 93 00:04:16,640 --> 00:04:22,360 Speaker 3: to understand is certain certain technologies are globally interconnected, so 94 00:04:23,000 --> 00:04:25,360 Speaker 3: you're going to have customers in different locations. You have 95 00:04:25,400 --> 00:04:27,640 Speaker 3: customers in Europe and Japan. They will have a business 96 00:04:27,640 --> 00:04:29,640 Speaker 3: in China as well, and you want to be a 97 00:04:29,680 --> 00:04:30,840 Speaker 3: global supplier to them. 98 00:04:30,880 --> 00:04:32,600 Speaker 2: I can see the qual calls saying just around the corner. 99 00:04:32,680 --> 00:04:34,320 Speaker 2: Very happy with that response that you didn't take the 100 00:04:34,360 --> 00:04:36,800 Speaker 2: bait and talk about a former president, Christianne. I want 101 00:04:36,800 --> 00:04:38,839 Speaker 2: to talk about the direction of traveling the global economy 102 00:04:39,480 --> 00:04:42,200 Speaker 2: for chip maker, just for the industry. Do you think 103 00:04:42,200 --> 00:04:43,720 Speaker 2: we're close to the point where they have to pick 104 00:04:43,720 --> 00:04:46,240 Speaker 2: a country, have to choose a side. We're either going 105 00:04:46,279 --> 00:04:49,440 Speaker 2: to supply China or we're supplying Europe in America. How 106 00:04:49,480 --> 00:04:50,640 Speaker 2: close are we to that moment? 107 00:04:51,240 --> 00:04:53,919 Speaker 3: Look, I don't think we are right now at this 108 00:04:54,040 --> 00:04:58,760 Speaker 3: point in the industries that we serve, and it's one 109 00:04:58,800 --> 00:05:01,839 Speaker 3: of those things that, yeah, if it changes, I think 110 00:05:01,880 --> 00:05:06,120 Speaker 3: companies have to adapt. We have seen that some industries 111 00:05:06,480 --> 00:05:09,320 Speaker 3: had to face that. You have some industries that that's 112 00:05:09,400 --> 00:05:11,760 Speaker 3: kind of the reality for different reasons, whether it's a 113 00:05:11,760 --> 00:05:14,560 Speaker 3: cloud company or social media company and et cetera. 114 00:05:15,240 --> 00:05:16,240 Speaker 1: We have been not. 115 00:05:16,360 --> 00:05:19,320 Speaker 3: At this space, so it's something that we're going to 116 00:05:19,360 --> 00:05:20,720 Speaker 3: have to worry about it in the future. 117 00:05:20,880 --> 00:05:22,320 Speaker 4: What industry do you think is going to be the 118 00:05:22,360 --> 00:05:23,560 Speaker 4: biggest area of growth for you? 119 00:05:24,880 --> 00:05:29,800 Speaker 3: We are very pleased what's happening with automotive. We're now 120 00:05:29,880 --> 00:05:33,080 Speaker 3: working with virtually every car company. The car is becoming 121 00:05:33,080 --> 00:05:35,920 Speaker 3: a new computing space, and we are jobs to provide 122 00:05:35,920 --> 00:05:39,520 Speaker 3: the digital part. And I think sometimes it goo alongside electrification. 123 00:05:40,000 --> 00:05:42,760 Speaker 3: That's an exciting it's going to build revenue for wellcome 124 00:05:43,040 --> 00:05:46,400 Speaker 3: over time. The other one that was really happy about it, 125 00:05:46,440 --> 00:05:47,039 Speaker 3: and it's. 126 00:05:46,920 --> 00:05:48,800 Speaker 1: New to us. We're entering the PC space. 127 00:05:49,839 --> 00:05:54,680 Speaker 3: We just build now in the fastest processor for any laptop, 128 00:05:55,000 --> 00:05:57,320 Speaker 3: and we think that could be a great opportunity for us. 129 00:05:57,360 --> 00:05:59,479 Speaker 4: Okay, I have to ask this as we step back 130 00:06:00,120 --> 00:06:01,120 Speaker 4: sort of reflect on this. 131 00:06:01,240 --> 00:06:03,160 Speaker 1: AI and fused davos are. 132 00:06:03,080 --> 00:06:05,919 Speaker 4: Even going to have laptops or are they basically going 133 00:06:06,000 --> 00:06:07,520 Speaker 4: to be headsets that we put on and we go 134 00:06:07,640 --> 00:06:09,880 Speaker 4: like this and our words kind of show up. I mean, 135 00:06:09,920 --> 00:06:14,040 Speaker 4: how far are we going away from the previous models. 136 00:06:13,200 --> 00:06:15,359 Speaker 1: Of normal existence? 137 00:06:15,720 --> 00:06:20,960 Speaker 3: Look, it's interesting, it's a great question. I remember when 138 00:06:21,080 --> 00:06:25,080 Speaker 3: laptops appear, people thought that the desktop will go away, 139 00:06:25,120 --> 00:06:27,200 Speaker 3: and then when phones appear, people said the computer is 140 00:06:27,240 --> 00:06:27,880 Speaker 3: going to go away. 141 00:06:28,080 --> 00:06:29,960 Speaker 1: And when glasses appear, you think the phone's going to 142 00:06:29,960 --> 00:06:30,240 Speaker 1: go away. 143 00:06:30,240 --> 00:06:33,200 Speaker 3: I think the reality is your phone's going to be 144 00:06:33,400 --> 00:06:37,120 Speaker 3: still with you, your laptop is going to be still with you, 145 00:06:37,200 --> 00:06:39,039 Speaker 3: but they're going to become much better, and they're going 146 00:06:39,120 --> 00:06:41,640 Speaker 3: to become more useful, and you're going to get more 147 00:06:41,680 --> 00:06:43,719 Speaker 3: out of them. And I think that's going to be 148 00:06:43,760 --> 00:06:47,360 Speaker 3: the great opportunity of jen Ai in those devices.