Speaker 1: Quile com CEO Christianammon. I'm told that there are going
Speaker 1: to be some surprises at Computex. On stage. It's just
Speaker 1: you and I tell me what the surprises will be,
Speaker 1: not for bridges on stage.
Speaker 2: I think it's going to be about bringing the ecosystem together.
Speaker 2: If anything, it's going to be quocun showing that we're
Speaker 2: really in the PC market to stay and the entire
Speaker 2: ecosystem is supporting us. But yeah, we'll have some interesting
Speaker 2: Easter egg on our materials and you'll see it. I
Speaker 2: think you're gonna like it.
Speaker 1: This is I'd say the advent of the AIPC will
Speaker 1: wait a bit of time for volume sales around the world.
Speaker 1: But I still feel like the consumer is thinking, well,
Speaker 1: when I open the box and I take out my
Speaker 1: AIPC and I fire it up or I power it up,
Speaker 1: what is going to be materially different from the PC
Speaker 1: that I already have?
Speaker 2: The fundamental difference and I believe the copilot plus demonstrated
Speaker 2: about Microsoft as a great starting point is the how
Speaker 2: you use your machine, how you interact your machine, is
Speaker 2: going to be very different than what you used to
Speaker 2: do in your PC. Personally, I think this is as
Speaker 2: significant as a Windows ninety five type transition. For example,
Speaker 2: the thing that's going to be different every single pixel
Speaker 2: on the screen is index it. So you all do
Speaker 2: need to do is to tell the machine in natural language.
Speaker 2: I've seen a YouTube video about some yellow cupcakes. Can
Speaker 2: you bring that to me and we'll say, yes, this
Speaker 2: is what you saw several days ago, this was the video.
Speaker 2: Or you can say I've seen the document, I see
Speaker 2: a PowerPoint that had a picture like that, and we'll
Speaker 2: bring the PowerPoint. This is just one feature. Recall how
Speaker 2: you're going to create things you sketch and he finishes
Speaker 2: the job for you. And simple things as having a
Speaker 2: team's call, which is now how we use PCs. You
Speaker 2: can actually add subtitles in real time on any language
Speaker 2: to any speaker that is speaking a different language. Those
Speaker 2: are things that were not possible before.
Speaker 1: What's interesting about what you're saying, Cristiano, is it applies
Speaker 1: to the everyday person. It seems, you know, it seems
Speaker 1: based on what you're saying, that the consumer can go
Speaker 1: to Best Buy and buy a product and notice the difference.
Speaker 1: I think some of the skepticism is that a lot
Speaker 1: of the functionality is best serving knowledge workers. What do
Speaker 1: you make of that?
Speaker 2: No, I think this is very profound. Really, the AI
Speaker 2: is changing the productivity or everything you do on your laptop,
Speaker 2: and you're correct. I think consumers will be able to
Speaker 2: see the difference, but also will actually help knowledge workers
Speaker 2: be more productive or actually have knowledge to do things
Speaker 2: that they didn't have before. And I think that's how
Speaker 2: we should be thinking about the future of personal computing.
Speaker 2: It's more than what we have done today. Is now
Speaker 2: having an assistant to help you do things and even
Speaker 2: help you teach you, teach you to do things they
Speaker 2: didn't know how to do before.
Speaker 1: Because battery life absolutely tops the polls in terms of
Speaker 1: what's important to so many people. Is the battery life
Speaker 1: component of the AIPC going to sway people this time around?
Speaker 2: Look, I love talking about this because actually this is
Speaker 2: one of the reasons that you see every single one,
Speaker 2: no exceptions of the laptops have been ANNOUNCEO Copilot plus
Speaker 2: being on Qualcom Snapdragon acceleite. The reason it's very simple.
Speaker 2: Think about this. You have a CPU that is doing
Speaker 2: a job. You have a GPU, your graphic or processor
Speaker 2: unit is doing another job. But now you have this
Speaker 2: other computing engine which is the neural processing unit that
Speaker 2: is just running out all the time. It will simply
Speaker 2: not run on the other platforms other than the snap
Speaker 2: Dragon Acceleite because you have to have the full day
Speaker 2: of battery life.
Speaker 1: So first I'm.
Speaker 2: Gonna tell you when we look on the early days
Speaker 2: of the Copila Plus while running on a Qualcom platform,
Speaker 2: will take about twenty thirty minutes of consumption of the
Speaker 2: overall days of years of a battery we're taking on
Speaker 2: the competing platforms five to six hours. That was unacceptable.
Speaker 2: Now when you step back and you look at this
Speaker 2: new computer running on Accelead with Copila Plus, Microsoft show
Speaker 2: twenty two hours of video playback with the AI running,
Speaker 2: that's a whole different paradigm. So people are gonna be
Speaker 2: able to not only have the best performance, not only
Speaker 2: have the AI use case now having a very small
Speaker 2: and thin laptop, but they're gonna have battery life for
Speaker 2: everything they need to do. You're gonna leave your charger at.
Speaker 1: Home, Christiano, From one technology to another. When grandmothers all
Speaker 1: around the world go to the store and buy their
Speaker 1: first AIPC and they take it home and they try
Speaker 1: to plug in their printer, will it work, of course
Speaker 1: you will.
Speaker 2: So one of the things that it's important to understand
Speaker 2: the journey that we have been on Microsoft is it's
Speaker 2: a fundamental shift from Microsoft changing Windows from x eighty
Speaker 2: six to an ARM instruction set and it's changed into
Speaker 2: an AIPC. And part of what we have been doing
Speaker 2: is to bring the ecosystem along. Is not only the printers,
Speaker 2: it is not only the docking station, also the games.
Speaker 2: We've been working with Microsoft to have the top twelve
Speaker 2: hundred games optimized on the platform, and it's really about
Speaker 2: the future of the Windows ecosystem. So the thing to
Speaker 2: think about it is not only you'll be able to
Speaker 2: work for old printer, but you'll be able to do
Speaker 2: things you were not able to do before with your
Speaker 2: old PC.
Speaker 1: Christiana, we recognize the following that snap Dragon Excelle has.
Speaker 1: You can go on any social media platform I see it.
Speaker 1: But Intel still sort of dominates the traditional sales channels
Speaker 1: for PC. They've got their name on all the shelves.
Speaker 1: You know, quod cooms in a different part of its history,
Speaker 1: but do you think you can take them on on
Speaker 1: those sales channels, the marketing spend, the R and D
Speaker 1: where they're quite entrenched.
Speaker 2: Okay, so on the R and D, I beg to differ.
Speaker 2: I think the performance leadership now is clearly within the
Speaker 2: Windows ecosystem and it's clearly worth excellete just looking on
Speaker 2: the CPU performance Orion's custom CPU developed by Qualcoms, the
Speaker 2: vested CPU out there for any personal computing, and then
Speaker 2: the NPU and EI engine. It's only possible on a
Speaker 2: QUALKM platform. So I do beg to differ on the
Speaker 2: R and D. But let's just talk about the big question,
Speaker 2: which is it's a new market, it's a new channel
Speaker 2: for qualk, and I'll tell you what is different this time.
Speaker 2: There are two aspects. One aspect is consumers are more
Speaker 2: savvy and consumers actly come from a phone. Actually, your
Speaker 2: most important purchase decision, I will think today is your smartphone,
Speaker 2: and you have another knowledge coming from the phone. So
Speaker 2: stop Snapdragon is not something new to you. But the
Speaker 2: most important thing is exactly not that. Well, the most
Speaker 2: important thing when you usually see the incumbency position on
Speaker 2: PC is at the enterprise, but the enterprise actually has
Speaker 2: US and Microsoft one hundred percent aligne. Usually enterprises have
Speaker 2: been slower to adopt new version of Windows. But Microsoft
Speaker 2: actually is doing a great job with enterprises around the
Speaker 2: world to get them to embrace the copilot in the
Speaker 2: Copilot Plus, So that's a big tailwind. The Microsoft is
Speaker 2: driving the enterprises into the future of AIPC. That's great
Speaker 2: new for Qualcom, and that builds on the incredible platform
Speaker 2: which is Snapdragon acceleat.
Speaker 1: Christiano. Based on those data points, then remind me of
Speaker 1: where you see volumes for the AIPC in its first
Speaker 1: kind of full twelve months and the adoption by all markets.
Speaker 2: Yes, so it's just starting. So we have twenty two
Speaker 2: laptops the gut launch and I think that's on the
Speaker 2: first wave. They are hitting these shelves now, some pre order,
Speaker 2: some are already available for purchase, and it's going to
Speaker 2: go through summer to back to school, which is a
Speaker 2: big PC season. So our fiscal ear ends in September,
Speaker 2: so for us, it will be a material event in
Speaker 2: fiscal twenty five and that's just the beginning. I think
Speaker 2: the other data point ad is we're new, We're new
Speaker 2: to this market, so it's all an expansion and growth
Speaker 2: for Qualcom and we don't have to make heroic assumptions,
Speaker 2: but we like the affect that there's a huge opportunity
Speaker 2: for an upgrade cycle driven by AI, and we're now
Speaker 2: a key participant in the market.