WEBVTT - Qualcomm CEO Talks Company Forecast

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<v Speaker 1>Quidcom stock significantly higher around ten percent. The story. Things

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<v Speaker 1>look like they're improving in the smartphone market globally, and

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<v Speaker 1>within that there's a lot of nuance. There is specific

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<v Speaker 1>action in China, and there's strength also for the chips

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<v Speaker 1>that go into cars in the automotive sector. Delighted to

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<v Speaker 1>say that Qualcomm CEO Christiano Andman joins us. Now, good

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<v Speaker 1>morning to you, Christiano, and let let's start with China.

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<v Speaker 1>What you guys said is that sales to Chinese handset

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<v Speaker 1>makers serves forty percent in the first half. But I

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<v Speaker 1>wonder what the story behind that is in the end market,

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<v Speaker 1>what's happening, particularly with Android based platforms for the Chinese consumer.

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<v Speaker 2>Very good good morning to you as well. It's a

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<v Speaker 2>great morning I think today. But look the story on

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<v Speaker 2>Hins's in China, it's pretty simple. We've seen the market

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<v Speaker 2>had stabilized. We had said about that a couple quarters ago,

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<v Speaker 2>and users are buying better phonks.

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<v Speaker 3>It's really for us.

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<v Speaker 2>A story of flagship and high years within the Android,

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<v Speaker 2>especially a lot of the flagships that are launching with Genai.

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<v Speaker 2>I think we see the very beginning of Genai coming

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<v Speaker 2>to devices, and that actually drove you know, a lot

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<v Speaker 2>of the growth and it's forty not only in this quarter,

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<v Speaker 2>but actually expected to have the same in the next

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<v Speaker 2>as we as we look at the guide, he has

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<v Speaker 2>been a good story as the smartphone markets stabilize. It

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<v Speaker 2>in the Android flagship has stay resilient.

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<v Speaker 1>Christiana, as you know and our audience knows. We will

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<v Speaker 1>talk about on device when it comes to Generatorive AI.

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<v Speaker 1>Let's just linger a moment longer on China. It looks

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<v Speaker 1>like some of the domestic players that Android base are

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<v Speaker 1>gaining market share against Apple and the iPhone. You see

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<v Speaker 1>that in the IDC data, you see it in the

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<v Speaker 1>Counterpoint research data. If that is the case, where the

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<v Speaker 1>domestic players are gaining that market share, what does it

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<v Speaker 1>mean for Qualcom.

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<v Speaker 2>Look the way you should think about our position in

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<v Speaker 2>China in the Hintson market, we have been very focused

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<v Speaker 2>on the premium and high tier with snap Dragon. So

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<v Speaker 2>when an Android OEM from our customers show me OPO

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<v Speaker 2>one plus on our Vivo when they're selling a flagship device,

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<v Speaker 2>we have a lot of content.

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<v Speaker 3>Not only we have the modem content, but we have

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<v Speaker 3>a lot of.

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<v Speaker 2>The application processor, the AI engine, So that has been

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<v Speaker 2>a positive development, and that's what is being driving the

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<v Speaker 2>content increase and the ASP increase, especially when the mix

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<v Speaker 2>changes to a premium device. The fact that the Android

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<v Speaker 2>flagship in China with the Chinese OEMs had been stable,

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<v Speaker 2>proven to be resilient, and see positive momentum at the

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<v Speaker 2>mixed get richer Chinese users are buying a better phone.

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<v Speaker 2>That's a good story for Qualcom and it's reflected in

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<v Speaker 2>the numbers.

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<v Speaker 4>Is there any anxiety from a political perspective, Christiana? You've

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<v Speaker 4>obviously whathered the fact that you're only Huawei four G phones.

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<v Speaker 4>Now you're actually seeing basically ultimately revenue pull away by

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<v Speaker 4>the end of this year for Huawei. But the geopolitical

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<v Speaker 4>context is clear. How difficult is it to you to

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<v Speaker 4>be so dependent on China.

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<v Speaker 2>Look, the first thing I want to say is our

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<v Speaker 2>business is not just China, and I think what happened

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<v Speaker 2>with this smartphone, this is a phenomenon globally. I think

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<v Speaker 2>you even saw Samsung when they talk about it their

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<v Speaker 2>earnings called they have a commentary about the device. AI

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<v Speaker 2>opportunity for flagships is real. So the second part is

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<v Speaker 2>the way we think about everything is if you have

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<v Speaker 2>a leadership position in technology, you're going to have a

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<v Speaker 2>big business in China. It's just a function of the

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<v Speaker 2>size of the market. And I think that's been true

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<v Speaker 2>not only for Qualcom, for a lot of other companies

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<v Speaker 2>that have leadership product position.

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<v Speaker 3>And to this.

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<v Speaker 2>Point, I think we have been seeing our business in

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<v Speaker 2>China can continue to be a stable business. We have

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<v Speaker 2>not been restricted by Like everybody else in the industry,

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<v Speaker 2>you have to monitor the situation. I think this is

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<v Speaker 2>how we have to navigate in the semi conductor industry.

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<v Speaker 2>But we're happy with the results we have right now.

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<v Speaker 4>Let's go therefore to the technology that is winning out

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<v Speaker 4>and you talk about AI on device, how are people

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<v Speaker 4>using it? You've got a snaptrack at eight series Jen

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<v Speaker 4>three mobile platform that's really meant to be supporting generative

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<v Speaker 4>AI at the moment, basically with a personal assistment assistant potentially,

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<v Speaker 4>But how is that a reality for any or many?

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<v Speaker 2>Look, I love talking about this and I wish I

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<v Speaker 2>had a lot of time, so I'm going to try

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<v Speaker 2>to summarize it in just a few minutes.

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<v Speaker 3>The first thing that is happening.

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<v Speaker 2>You need to think about AI running on the cloud

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<v Speaker 2>and the device is a new way of doing computing,

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<v Speaker 2>and we're just at the very beginning of the use cases.

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<v Speaker 2>So right now we can see, for example, multiple tens

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<v Speaker 2>of use cases, and I expect that within six months

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<v Speaker 2>from now will be hundreds, if not more. What are

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<v Speaker 2>people doing with it? You see some use cases of

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<v Speaker 2>life transfer. You can watch a video, you can add

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<v Speaker 2>a subtitle in any language you want. You can do

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<v Speaker 2>a lot of real time photo editing. You can change

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<v Speaker 2>a lot of the images with the way you like it.

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<v Speaker 2>You can create new images, you can summarize documents. But

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<v Speaker 2>the most important thing is the other thing that it's

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<v Speaker 2>going to bring the phones. So I'm going to give

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<v Speaker 2>you a point to an example. More and more you

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<v Speaker 2>do more things on the phone today, but there are

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<v Speaker 2>things that you're going to think about it. You know what,

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<v Speaker 2>I have to respond to this very long email. I'd

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<v Speaker 2>rather wait until I get to my laptop. When you

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<v Speaker 2>think about a Microsoft Copilot in the phone, for example,

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<v Speaker 2>you're going to see a lot more use off those devices.

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<v Speaker 2>We're going to see much much more productivity. So we're

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<v Speaker 2>the beginning of something great. It's going to take some time.

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<v Speaker 2>Use cases are developing. You should think about this what

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<v Speaker 2>happened with the smartphone. In the beginning, there's just a

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<v Speaker 2>few apps in the app store, but then all of

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<v Speaker 2>a sudden, the apps started to define the user experience.

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<v Speaker 3>That's how we feel about AI. We're at the beginning.

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<v Speaker 2>It's going to take a little bit of time, but

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<v Speaker 2>the signs are great for.

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<v Speaker 1>Our Bloomberg television and radio audiences worldwide. We're speaking to

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<v Speaker 1>the clowdcom CEO, Christiano Amon, and I think you summed

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<v Speaker 1>it up well, Christiana. We are in the very early

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<v Speaker 1>stages of a world where we're running ten billion parameter

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<v Speaker 1>models locally on device on the smartphone side, but we're

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<v Speaker 1>already talking about the AIPC.

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<v Speaker 3>Right.

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<v Speaker 1>You guys have your latest generation which will come to market,

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<v Speaker 1>Snapdragon ten Elite and Plus, and it's very impressive combination

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<v Speaker 1>of CPU, GPU, NPU. Give me a minute, we'll talk

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<v Speaker 1>about MPU. But I still think a lot of people

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<v Speaker 1>struggle to say, what am I going to do sitting

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<v Speaker 1>in a cafe running a ten billion parameter model while

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<v Speaker 1>I have a cappuccino, Like, what's the actual real world

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<v Speaker 1>use case?

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<v Speaker 2>Okay, you know, we could not be more excited about

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<v Speaker 2>what's happened in PC. I really think PC is reborn

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<v Speaker 2>with the Snapdragon Accalite. And it's not only because of

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<v Speaker 2>the performance, but because actually AI. By the way, we

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<v Speaker 2>can run twenty billion parameter on the ac elites. This

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<v Speaker 2>is it's it's evolving very very fast. But the use

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<v Speaker 2>case are really incredible. Think about now this AI running

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<v Speaker 2>all the time. Everything you're doing on your PC, it

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<v Speaker 2>is running, and it's private. It's your data, it's your

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<v Speaker 2>use The ICE learning about you, stray to understand your intent.

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<v Speaker 2>And we starting to see right now with the Microsoft

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<v Speaker 2>Copilot that you can use the Copilot for everything, for PowerPoint,

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<v Speaker 2>for Excel, for ward or email.

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<v Speaker 3>But it's much more.

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<v Speaker 2>The AI is helping you recall documents that you have

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<v Speaker 2>on that you've seen or you have on your computer.

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<v Speaker 2>It's going to help you do things, gonna reminding of

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<v Speaker 2>things that you have to do, or even it's gonna

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<v Speaker 2>help you with tasks that you need you don't know

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<v Speaker 2>how to do it, and they will help you one

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<v Speaker 2>step of the way. That's going to change how we

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<v Speaker 2>use our computers. And the interesting thing is how do

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<v Speaker 2>you do this in a way that you don't compromise

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<v Speaker 2>battery life? A CPU and a GPU have a job

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<v Speaker 2>to do. And that's why when you buy a PC today,

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<v Speaker 2>you want a fest CPU and a fast GPU, but

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<v Speaker 2>you need a whole new engine that needs to do

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<v Speaker 2>something else and needs to do it all the time

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<v Speaker 2>and not compromise battery life.

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<v Speaker 3>That's the Qualcom story, and what is.

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<v Speaker 4>The market share story of Qualcolm. We've been hearing a

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<v Speaker 4>lot about other competitors getting into the AIPC space.

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<v Speaker 2>I think this is the great story for Qualcom because

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<v Speaker 2>we're new, we're just entering the market. I think we're

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<v Speaker 2>going to see a lot of the devices coming up

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<v Speaker 2>in the second half of this year. I encourage everybody

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<v Speaker 2>to watch the Microsoft build and the incredible things they're

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<v Speaker 2>doing with the new Windows, and I think what's going

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<v Speaker 2>to happen is Qualcom is coming in with the leadership product.

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<v Speaker 3>We like the design traction.

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<v Speaker 2>Financially, that's going to be more of a fiscal twenty

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<v Speaker 2>five event because a lot of the laptops are going

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<v Speaker 2>to be in the shelves for the second half and

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<v Speaker 2>back to school. But the product momentum is great. And

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<v Speaker 2>here's how we should think about Qualcom market share in general.

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<v Speaker 2>One thing about the company, and we and it's been

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<v Speaker 2>the history of the company. Everything that we set ourselves

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<v Speaker 2>to do. The track record is actually not bad. When

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<v Speaker 2>we entered the Wi Fi or we became number one,

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<v Speaker 2>we entered the rfron end, we became number one automotive.

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<v Speaker 2>We said we're going to go into automotive. I think

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<v Speaker 2>our story there is very, very good. We're becoming the

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<v Speaker 2>prefer partner of the industry. We said we're going to

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<v Speaker 2>enter the metaphorse. We have every single design. Now we're

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<v Speaker 2>saying we're going to enter the PC and we started

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<v Speaker 2>off the gate with the leadership and the product. So

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<v Speaker 2>you know, as we continue to execute, time is going

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<v Speaker 2>to show that we can gain share and can be

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<v Speaker 2>a significant player.

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<v Speaker 3>After that is going to be industrial.

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<v Speaker 2>As we continue to execute on the growth, diversification of

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<v Speaker 2>the company, fight

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<v Speaker 4>Into quill Com CEO Cristiano Amon, we thank you for

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<v Speaker 4>bringing the energy today.