1 00:00:00,080 --> 00:00:04,120 Speaker 1: Quidcom stock significantly higher around ten percent. The story. Things 2 00:00:04,120 --> 00:00:07,200 Speaker 1: look like they're improving in the smartphone market globally, and 3 00:00:07,240 --> 00:00:10,240 Speaker 1: within that there's a lot of nuance. There is specific 4 00:00:10,280 --> 00:00:13,240 Speaker 1: action in China, and there's strength also for the chips 5 00:00:13,280 --> 00:00:16,159 Speaker 1: that go into cars in the automotive sector. Delighted to 6 00:00:16,200 --> 00:00:20,200 Speaker 1: say that Qualcomm CEO Christiano Andman joins us. Now, good 7 00:00:20,200 --> 00:00:22,720 Speaker 1: morning to you, Christiano, and let let's start with China. 8 00:00:23,120 --> 00:00:26,119 Speaker 1: What you guys said is that sales to Chinese handset 9 00:00:26,200 --> 00:00:30,400 Speaker 1: makers serves forty percent in the first half. But I 10 00:00:30,440 --> 00:00:33,320 Speaker 1: wonder what the story behind that is in the end market, 11 00:00:33,560 --> 00:00:37,879 Speaker 1: what's happening, particularly with Android based platforms for the Chinese consumer. 12 00:00:39,120 --> 00:00:41,159 Speaker 2: Very good good morning to you as well. It's a 13 00:00:41,200 --> 00:00:45,479 Speaker 2: great morning I think today. But look the story on 14 00:00:45,560 --> 00:00:49,240 Speaker 2: Hins's in China, it's pretty simple. We've seen the market 15 00:00:49,400 --> 00:00:52,320 Speaker 2: had stabilized. We had said about that a couple quarters ago, 16 00:00:52,920 --> 00:00:56,400 Speaker 2: and users are buying better phonks. 17 00:00:57,000 --> 00:00:58,600 Speaker 3: It's really for us. 18 00:00:58,360 --> 00:01:01,600 Speaker 2: A story of flagship and high years within the Android, 19 00:01:02,080 --> 00:01:05,080 Speaker 2: especially a lot of the flagships that are launching with Genai. 20 00:01:05,760 --> 00:01:09,560 Speaker 2: I think we see the very beginning of Genai coming 21 00:01:09,640 --> 00:01:14,319 Speaker 2: to devices, and that actually drove you know, a lot 22 00:01:14,319 --> 00:01:18,240 Speaker 2: of the growth and it's forty not only in this quarter, 23 00:01:18,360 --> 00:01:22,039 Speaker 2: but actually expected to have the same in the next 24 00:01:22,160 --> 00:01:24,480 Speaker 2: as we as we look at the guide, he has 25 00:01:24,600 --> 00:01:27,440 Speaker 2: been a good story as the smartphone markets stabilize. It 26 00:01:27,520 --> 00:01:30,240 Speaker 2: in the Android flagship has stay resilient. 27 00:01:31,440 --> 00:01:34,000 Speaker 1: Christiana, as you know and our audience knows. We will 28 00:01:34,080 --> 00:01:36,640 Speaker 1: talk about on device when it comes to Generatorive AI. 29 00:01:37,000 --> 00:01:39,800 Speaker 1: Let's just linger a moment longer on China. It looks 30 00:01:39,840 --> 00:01:42,920 Speaker 1: like some of the domestic players that Android base are 31 00:01:42,959 --> 00:01:46,320 Speaker 1: gaining market share against Apple and the iPhone. You see 32 00:01:46,319 --> 00:01:48,400 Speaker 1: that in the IDC data, you see it in the 33 00:01:48,440 --> 00:01:52,600 Speaker 1: Counterpoint research data. If that is the case, where the 34 00:01:52,640 --> 00:01:55,520 Speaker 1: domestic players are gaining that market share, what does it 35 00:01:55,560 --> 00:01:57,040 Speaker 1: mean for Qualcom. 36 00:01:57,840 --> 00:02:02,480 Speaker 2: Look the way you should think about our position in 37 00:02:02,600 --> 00:02:06,320 Speaker 2: China in the Hintson market, we have been very focused 38 00:02:06,800 --> 00:02:09,799 Speaker 2: on the premium and high tier with snap Dragon. So 39 00:02:09,919 --> 00:02:14,600 Speaker 2: when an Android OEM from our customers show me OPO 40 00:02:14,760 --> 00:02:19,240 Speaker 2: one plus on our Vivo when they're selling a flagship device, 41 00:02:19,520 --> 00:02:20,560 Speaker 2: we have a lot of content. 42 00:02:20,639 --> 00:02:22,800 Speaker 3: Not only we have the modem content, but we have 43 00:02:22,919 --> 00:02:23,440 Speaker 3: a lot of. 44 00:02:23,400 --> 00:02:27,280 Speaker 2: The application processor, the AI engine, So that has been 45 00:02:27,440 --> 00:02:30,840 Speaker 2: a positive development, and that's what is being driving the 46 00:02:31,000 --> 00:02:34,240 Speaker 2: content increase and the ASP increase, especially when the mix 47 00:02:34,360 --> 00:02:36,960 Speaker 2: changes to a premium device. The fact that the Android 48 00:02:37,320 --> 00:02:42,840 Speaker 2: flagship in China with the Chinese OEMs had been stable, 49 00:02:42,960 --> 00:02:46,800 Speaker 2: proven to be resilient, and see positive momentum at the 50 00:02:46,880 --> 00:02:50,440 Speaker 2: mixed get richer Chinese users are buying a better phone. 51 00:02:50,600 --> 00:02:53,040 Speaker 2: That's a good story for Qualcom and it's reflected in 52 00:02:53,080 --> 00:02:53,600 Speaker 2: the numbers. 53 00:02:54,080 --> 00:02:57,800 Speaker 4: Is there any anxiety from a political perspective, Christiana? You've 54 00:02:57,840 --> 00:03:02,000 Speaker 4: obviously whathered the fact that you're only Huawei four G phones. 55 00:03:02,080 --> 00:03:05,520 Speaker 4: Now you're actually seeing basically ultimately revenue pull away by 56 00:03:05,560 --> 00:03:08,840 Speaker 4: the end of this year for Huawei. But the geopolitical 57 00:03:08,840 --> 00:03:11,560 Speaker 4: context is clear. How difficult is it to you to 58 00:03:11,600 --> 00:03:12,760 Speaker 4: be so dependent on China. 59 00:03:14,040 --> 00:03:17,000 Speaker 2: Look, the first thing I want to say is our 60 00:03:17,040 --> 00:03:19,880 Speaker 2: business is not just China, and I think what happened 61 00:03:20,200 --> 00:03:23,600 Speaker 2: with this smartphone, this is a phenomenon globally. I think 62 00:03:23,639 --> 00:03:26,200 Speaker 2: you even saw Samsung when they talk about it their 63 00:03:26,240 --> 00:03:28,680 Speaker 2: earnings called they have a commentary about the device. AI 64 00:03:28,840 --> 00:03:33,280 Speaker 2: opportunity for flagships is real. So the second part is 65 00:03:33,320 --> 00:03:36,160 Speaker 2: the way we think about everything is if you have 66 00:03:36,240 --> 00:03:39,240 Speaker 2: a leadership position in technology, you're going to have a 67 00:03:39,280 --> 00:03:41,320 Speaker 2: big business in China. It's just a function of the 68 00:03:41,400 --> 00:03:43,880 Speaker 2: size of the market. And I think that's been true 69 00:03:43,920 --> 00:03:45,960 Speaker 2: not only for Qualcom, for a lot of other companies 70 00:03:46,000 --> 00:03:48,560 Speaker 2: that have leadership product position. 71 00:03:49,120 --> 00:03:50,400 Speaker 3: And to this. 72 00:03:50,480 --> 00:03:54,240 Speaker 2: Point, I think we have been seeing our business in 73 00:03:54,320 --> 00:03:57,520 Speaker 2: China can continue to be a stable business. We have 74 00:03:57,640 --> 00:04:00,000 Speaker 2: not been restricted by Like everybody else in the industry, 75 00:04:00,080 --> 00:04:02,320 Speaker 2: you have to monitor the situation. I think this is 76 00:04:02,840 --> 00:04:05,800 Speaker 2: how we have to navigate in the semi conductor industry. 77 00:04:05,920 --> 00:04:07,920 Speaker 2: But we're happy with the results we have right now. 78 00:04:08,160 --> 00:04:10,680 Speaker 4: Let's go therefore to the technology that is winning out 79 00:04:10,800 --> 00:04:13,520 Speaker 4: and you talk about AI on device, how are people 80 00:04:13,640 --> 00:04:15,840 Speaker 4: using it? You've got a snaptrack at eight series Jen 81 00:04:15,960 --> 00:04:18,960 Speaker 4: three mobile platform that's really meant to be supporting generative 82 00:04:19,080 --> 00:04:23,560 Speaker 4: AI at the moment, basically with a personal assistment assistant potentially, 83 00:04:23,640 --> 00:04:27,159 Speaker 4: But how is that a reality for any or many? 84 00:04:28,200 --> 00:04:30,240 Speaker 2: Look, I love talking about this and I wish I 85 00:04:30,320 --> 00:04:32,000 Speaker 2: had a lot of time, so I'm going to try 86 00:04:32,040 --> 00:04:35,320 Speaker 2: to summarize it in just a few minutes. 87 00:04:35,640 --> 00:04:36,960 Speaker 3: The first thing that is happening. 88 00:04:36,960 --> 00:04:39,520 Speaker 2: You need to think about AI running on the cloud 89 00:04:39,600 --> 00:04:42,760 Speaker 2: and the device is a new way of doing computing, 90 00:04:43,320 --> 00:04:46,080 Speaker 2: and we're just at the very beginning of the use cases. 91 00:04:46,120 --> 00:04:49,839 Speaker 2: So right now we can see, for example, multiple tens 92 00:04:49,880 --> 00:04:52,719 Speaker 2: of use cases, and I expect that within six months 93 00:04:52,720 --> 00:04:55,920 Speaker 2: from now will be hundreds, if not more. What are 94 00:04:55,920 --> 00:04:59,400 Speaker 2: people doing with it? You see some use cases of 95 00:04:59,440 --> 00:05:01,720 Speaker 2: life transfer. You can watch a video, you can add 96 00:05:02,040 --> 00:05:04,880 Speaker 2: a subtitle in any language you want. You can do 97 00:05:04,920 --> 00:05:08,240 Speaker 2: a lot of real time photo editing. You can change 98 00:05:08,680 --> 00:05:11,640 Speaker 2: a lot of the images with the way you like it. 99 00:05:11,720 --> 00:05:15,159 Speaker 2: You can create new images, you can summarize documents. But 100 00:05:15,200 --> 00:05:19,400 Speaker 2: the most important thing is the other thing that it's 101 00:05:19,480 --> 00:05:21,200 Speaker 2: going to bring the phones. So I'm going to give 102 00:05:21,200 --> 00:05:24,800 Speaker 2: you a point to an example. More and more you 103 00:05:24,880 --> 00:05:26,920 Speaker 2: do more things on the phone today, but there are 104 00:05:27,040 --> 00:05:29,280 Speaker 2: things that you're going to think about it. You know what, 105 00:05:29,320 --> 00:05:32,520 Speaker 2: I have to respond to this very long email. I'd 106 00:05:32,600 --> 00:05:34,880 Speaker 2: rather wait until I get to my laptop. When you 107 00:05:34,880 --> 00:05:37,839 Speaker 2: think about a Microsoft Copilot in the phone, for example, 108 00:05:38,200 --> 00:05:41,200 Speaker 2: you're going to see a lot more use off those devices. 109 00:05:41,200 --> 00:05:44,360 Speaker 2: We're going to see much much more productivity. So we're 110 00:05:44,480 --> 00:05:47,800 Speaker 2: the beginning of something great. It's going to take some time. 111 00:05:48,040 --> 00:05:50,200 Speaker 2: Use cases are developing. You should think about this what 112 00:05:50,320 --> 00:05:53,039 Speaker 2: happened with the smartphone. In the beginning, there's just a 113 00:05:53,040 --> 00:05:56,440 Speaker 2: few apps in the app store, but then all of 114 00:05:56,480 --> 00:05:59,720 Speaker 2: a sudden, the apps started to define the user experience. 115 00:06:00,000 --> 00:06:02,360 Speaker 3: That's how we feel about AI. We're at the beginning. 116 00:06:02,480 --> 00:06:04,080 Speaker 2: It's going to take a little bit of time, but 117 00:06:04,160 --> 00:06:06,840 Speaker 2: the signs are great for. 118 00:06:06,800 --> 00:06:09,880 Speaker 1: Our Bloomberg television and radio audiences worldwide. We're speaking to 119 00:06:09,920 --> 00:06:13,400 Speaker 1: the clowdcom CEO, Christiano Amon, and I think you summed 120 00:06:13,400 --> 00:06:15,920 Speaker 1: it up well, Christiana. We are in the very early 121 00:06:15,960 --> 00:06:19,680 Speaker 1: stages of a world where we're running ten billion parameter 122 00:06:19,800 --> 00:06:23,560 Speaker 1: models locally on device on the smartphone side, but we're 123 00:06:23,600 --> 00:06:25,360 Speaker 1: already talking about the AIPC. 124 00:06:26,160 --> 00:06:26,360 Speaker 3: Right. 125 00:06:26,560 --> 00:06:30,760 Speaker 1: You guys have your latest generation which will come to market, 126 00:06:31,200 --> 00:06:35,640 Speaker 1: Snapdragon ten Elite and Plus, and it's very impressive combination 127 00:06:35,720 --> 00:06:38,880 Speaker 1: of CPU, GPU, NPU. Give me a minute, we'll talk 128 00:06:38,920 --> 00:06:41,520 Speaker 1: about MPU. But I still think a lot of people 129 00:06:41,600 --> 00:06:44,160 Speaker 1: struggle to say, what am I going to do sitting 130 00:06:44,200 --> 00:06:48,400 Speaker 1: in a cafe running a ten billion parameter model while 131 00:06:48,440 --> 00:06:51,599 Speaker 1: I have a cappuccino, Like, what's the actual real world 132 00:06:51,720 --> 00:06:52,160 Speaker 1: use case? 133 00:06:53,320 --> 00:06:57,440 Speaker 2: Okay, you know, we could not be more excited about 134 00:06:57,480 --> 00:07:02,200 Speaker 2: what's happened in PC. I really think PC is reborn 135 00:07:02,600 --> 00:07:05,840 Speaker 2: with the Snapdragon Accalite. And it's not only because of 136 00:07:05,880 --> 00:07:09,159 Speaker 2: the performance, but because actually AI. By the way, we 137 00:07:09,200 --> 00:07:13,400 Speaker 2: can run twenty billion parameter on the ac elites. This 138 00:07:13,520 --> 00:07:16,840 Speaker 2: is it's it's evolving very very fast. But the use 139 00:07:16,920 --> 00:07:20,880 Speaker 2: case are really incredible. Think about now this AI running 140 00:07:21,040 --> 00:07:24,520 Speaker 2: all the time. Everything you're doing on your PC, it 141 00:07:24,600 --> 00:07:27,960 Speaker 2: is running, and it's private. It's your data, it's your 142 00:07:28,040 --> 00:07:31,560 Speaker 2: use The ICE learning about you, stray to understand your intent. 143 00:07:32,200 --> 00:07:35,680 Speaker 2: And we starting to see right now with the Microsoft 144 00:07:35,680 --> 00:07:39,120 Speaker 2: Copilot that you can use the Copilot for everything, for PowerPoint, 145 00:07:39,240 --> 00:07:41,240 Speaker 2: for Excel, for ward or email. 146 00:07:41,320 --> 00:07:42,080 Speaker 3: But it's much more. 147 00:07:42,160 --> 00:07:45,840 Speaker 2: The AI is helping you recall documents that you have 148 00:07:46,120 --> 00:07:49,239 Speaker 2: on that you've seen or you have on your computer. 149 00:07:49,480 --> 00:07:52,000 Speaker 2: It's going to help you do things, gonna reminding of 150 00:07:52,960 --> 00:07:55,320 Speaker 2: things that you have to do, or even it's gonna 151 00:07:55,320 --> 00:07:58,160 Speaker 2: help you with tasks that you need you don't know 152 00:07:58,200 --> 00:08:00,400 Speaker 2: how to do it, and they will help you one 153 00:08:00,400 --> 00:08:02,560 Speaker 2: step of the way. That's going to change how we 154 00:08:02,640 --> 00:08:07,000 Speaker 2: use our computers. And the interesting thing is how do 155 00:08:07,040 --> 00:08:10,240 Speaker 2: you do this in a way that you don't compromise 156 00:08:10,280 --> 00:08:13,200 Speaker 2: battery life? A CPU and a GPU have a job 157 00:08:13,240 --> 00:08:15,280 Speaker 2: to do. And that's why when you buy a PC today, 158 00:08:15,280 --> 00:08:17,280 Speaker 2: you want a fest CPU and a fast GPU, but 159 00:08:17,320 --> 00:08:19,440 Speaker 2: you need a whole new engine that needs to do 160 00:08:19,480 --> 00:08:21,600 Speaker 2: something else and needs to do it all the time 161 00:08:21,760 --> 00:08:23,520 Speaker 2: and not compromise battery life. 162 00:08:23,800 --> 00:08:26,400 Speaker 3: That's the Qualcom story, and what is. 163 00:08:26,320 --> 00:08:29,720 Speaker 4: The market share story of Qualcolm. We've been hearing a 164 00:08:29,760 --> 00:08:33,280 Speaker 4: lot about other competitors getting into the AIPC space. 165 00:08:34,480 --> 00:08:37,640 Speaker 2: I think this is the great story for Qualcom because 166 00:08:37,640 --> 00:08:41,200 Speaker 2: we're new, we're just entering the market. I think we're 167 00:08:41,280 --> 00:08:43,520 Speaker 2: going to see a lot of the devices coming up 168 00:08:43,559 --> 00:08:46,680 Speaker 2: in the second half of this year. I encourage everybody 169 00:08:46,679 --> 00:08:49,440 Speaker 2: to watch the Microsoft build and the incredible things they're 170 00:08:49,440 --> 00:08:53,400 Speaker 2: doing with the new Windows, and I think what's going 171 00:08:53,480 --> 00:08:58,800 Speaker 2: to happen is Qualcom is coming in with the leadership product. 172 00:08:58,880 --> 00:09:00,160 Speaker 3: We like the design traction. 173 00:09:00,800 --> 00:09:03,200 Speaker 2: Financially, that's going to be more of a fiscal twenty 174 00:09:03,200 --> 00:09:05,600 Speaker 2: five event because a lot of the laptops are going 175 00:09:05,640 --> 00:09:08,439 Speaker 2: to be in the shelves for the second half and 176 00:09:08,559 --> 00:09:12,480 Speaker 2: back to school. But the product momentum is great. And 177 00:09:12,520 --> 00:09:15,080 Speaker 2: here's how we should think about Qualcom market share in general. 178 00:09:15,920 --> 00:09:18,760 Speaker 2: One thing about the company, and we and it's been 179 00:09:18,800 --> 00:09:21,080 Speaker 2: the history of the company. Everything that we set ourselves 180 00:09:21,120 --> 00:09:23,880 Speaker 2: to do. The track record is actually not bad. When 181 00:09:23,880 --> 00:09:26,439 Speaker 2: we entered the Wi Fi or we became number one, 182 00:09:26,440 --> 00:09:30,120 Speaker 2: we entered the rfron end, we became number one automotive. 183 00:09:30,160 --> 00:09:32,000 Speaker 2: We said we're going to go into automotive. I think 184 00:09:32,000 --> 00:09:35,000 Speaker 2: our story there is very, very good. We're becoming the 185 00:09:35,040 --> 00:09:37,720 Speaker 2: prefer partner of the industry. We said we're going to 186 00:09:37,760 --> 00:09:41,120 Speaker 2: enter the metaphorse. We have every single design. Now we're 187 00:09:41,160 --> 00:09:43,360 Speaker 2: saying we're going to enter the PC and we started 188 00:09:43,360 --> 00:09:46,480 Speaker 2: off the gate with the leadership and the product. So 189 00:09:46,720 --> 00:09:49,520 Speaker 2: you know, as we continue to execute, time is going 190 00:09:49,600 --> 00:09:51,439 Speaker 2: to show that we can gain share and can be 191 00:09:51,480 --> 00:09:52,520 Speaker 2: a significant player. 192 00:09:52,800 --> 00:09:54,960 Speaker 3: After that is going to be industrial. 193 00:09:55,520 --> 00:09:58,600 Speaker 2: As we continue to execute on the growth, diversification of 194 00:09:58,640 --> 00:09:59,600 Speaker 2: the company, fight 195 00:09:59,679 --> 00:10:03,640 Speaker 4: Into quill Com CEO Cristiano Amon, we thank you for 196 00:10:03,679 --> 00:10:04,840 Speaker 4: bringing the energy today.