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Speaker 1: Welcome to our Bloomberg television and radio audiences worldwide. We

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Speaker 1: are live at cs LAS Vegas and we're talking to

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Speaker 1: the CEO of Qualcom, Cristiano among Cristiano.

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Speaker 2: Good to see you, Good to see you too.

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Speaker 1: There is a flood of wide ranging news and announcements,

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Speaker 1: but I actually want to start on your updated XR chip.

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Speaker 1: This is a processor that you are going to put

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Speaker 1: into headsets, mixed reality headsets that will take on the

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Speaker 1: Apple Vision Pro. And I just want you to talk

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Speaker 1: about how confident you are that you will take on

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Speaker 1: the Apple Vision Pro and at what end of the

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Speaker 1: market you're going to help support.

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Speaker 2: Look, we have been a big believer in spaceship computing,

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Speaker 2: and I think the Extra Agent two it's another instance

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Speaker 2: of what we have been doing generation after generation again

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Speaker 2: four K special computer on Chi. But most important is

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Speaker 2: when we've been driving how to bring scale. You'll see

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Speaker 2: some of the partnerships we have with Meta. What're they

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Speaker 2: doing with the Quest series we're working in announced I

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Speaker 2: think a while ago that we're working with Sansung and Google.

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Speaker 2: You saw some devices being announced from Sony. I think

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Speaker 2: that's a great opportunity. And the key thing is can

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Speaker 2: you get that to a scale with the performance in

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Speaker 2: the price point that we excite developers. I think it's

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Speaker 2: a great opportunity.

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Speaker 1: On the scale point, there is a feeling that Apple

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Speaker 1: will come in with Division Pro or a next generation

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Speaker 1: at a lower price point and just take the market

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Speaker 1: based on the demand you've had for XR two plus.

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Speaker 1: Is that going to be the case?

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Speaker 2: So no, I think you have to look at this

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Speaker 2: in a different way. I think Apple is doing a

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Speaker 2: great job. I think what they done with a Division

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Speaker 2: Pro it's great if you look at the device and

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Speaker 2: to bring it to scale. All that it's going to

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Speaker 2: do is to ignite the developer ecosystem. At the end

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Speaker 2: of the day, those computing platforms and developers creating content.

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Speaker 2: The more that you have more content, and that content

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Speaker 2: that they're going to help create is going to be

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Speaker 2: available on other platforms as well, and vice versa. It's

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Speaker 2: about creating the next spatial computing platform. It's a great opportunity.

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Speaker 2: We're still in the early growth stage of this market.

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Speaker 1: You have been to many cess I have been to

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Speaker 1: a few. It's always hard to find a common theme,

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Speaker 1: but this year there is clearly a common theme, which

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Speaker 1: is AI, and you and I have talked in the

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Speaker 1: past about on device AI use, particularly in the cell

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Speaker 1: phone or smartphone context. This year, the PC seems to

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Speaker 1: be the battleground. What is cloudcom doing AI on PC?

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Speaker 2: Look, we're incredibly excited and we feel kind of what

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Speaker 2: we have been saying as validated. If we look at

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Speaker 2: all of the other companies all announcing on device AI,

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Speaker 2: something we've been talking for more than a year. If

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Speaker 2: you look what we did at the Snapdrag and Summit,

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Speaker 2: we're now Excellete, which right now is the king of

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Speaker 2: all device AI computing platforms for the PC has an

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Speaker 2: integrated total seventy five tops ere operations per second, and

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Speaker 2: we started to see what Microsoft is doing other companies

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Speaker 2: doing this is exciting. Just to put in perspective, we

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Speaker 2: have over thirty different AI models been ported to the

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Speaker 2: Snapdragon platform preparing for this on device AIPC, and it's

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Speaker 2: going to change user experience, is going to change productivity.

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Speaker 2: Look at a number of CEOs talking about how they

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Speaker 2: investing in this, and then when you run on a device,

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Speaker 2: it's more secure and you have context and you have privacy.

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Speaker 1: So arm as an example, has been talking about the

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Speaker 1: promise of chips that power AI and PC for quite

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Speaker 1: a long time, and it kind of hasn't materialized until now.

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Speaker 1: When I posted on x and asked our audience, what

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Speaker 1: are you most excited about from a technology your gadget

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Speaker 1: perspective twenty twenty four. To be fair, many people replied

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Speaker 1: and said Snapdragon elite. So what does Snapdragon look like

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Speaker 1: in the real, real world this year twenty twenty four,

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Speaker 1: how many consumers can actually sit at their laptop or

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Speaker 1: PC and do something of interest.

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Speaker 2: Oh, you're going to be able to do a lot,

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Speaker 2: So just put a perspective on excelly because there's a

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Speaker 2: lot of excitement. We're very happy that a number of

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Speaker 2: designs is going to launch together with the new version

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Speaker 2: of Windows is going to have on device copilot, and

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Speaker 2: there's so many things you'll be able to do from

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Speaker 2: be able to have a computer now that's going to

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Speaker 2: predict you every moment. You're going to have copilot. When

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Speaker 2: you talk about the Windows ECO system across all the

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Speaker 2: different applications, and there's a number of other use cases.

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Speaker 2: When you think about visual models, language models, they're being developed.

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Speaker 2: They're very exciting and I think that that's happen on PC,

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Speaker 2: that's happening on phones, that's going to happening on cars

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Speaker 2: as well.

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Speaker 1: Let's set a baseline and say there is still some

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Speaker 1: weakness in the global smartphone market right what functionality in

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Speaker 1: this AI era is going to bring the consumer back

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Speaker 1: to start the upgrade cycle to get smartphone growth like

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Speaker 1: we've seen in prior cycles.

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Speaker 2: So it's a great question as far as the weakness.

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Speaker 2: I think we did say in the last seven called

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Speaker 2: that the correction and the inventory correction is behind us

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Speaker 2: right now, so we're excited about the market being stable.

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Speaker 2: And then it leads to exactly this point that you

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Speaker 2: bring up, what is going to create a new upgrade

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Speaker 2: cycle that people want to buy a new phone? And

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Speaker 2: we're one hundred percent convinced is what's happening right now

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Speaker 2: with Jenai on the phone the way you need to

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Speaker 2: think about it. We have been accustom to the experience

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Speaker 2: that you have a platform or the OS platform, on

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Speaker 2: top of the computer, you have the apps and you

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Speaker 2: go in and you touch it. But now on top

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Speaker 2: of the OS you're going to have those models. They're

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Speaker 2: trying to predict your every move and it's going to

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Speaker 2: bring not only efficiency, but new use cases and we've

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Speaker 2: seen that. We've seen that with automatic translation, we're seeing

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Speaker 2: that with web summarization. We're seeing that with ability to

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Speaker 2: create content, and they did content in real time, content

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Speaker 2: that didn't exist before, using visualization models and many more.

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Speaker 2: And something as simple as texting is going to have

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Speaker 2: context or allow the EI to bring information that you

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Speaker 2: may want to share, you may want to schedule. All

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Speaker 2: part of the experience. I'm believing the next user experience

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Speaker 2: is going to be based on Jenny I on the phones,

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Speaker 2: and we're optimistic that we could start to see devices

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Speaker 2: earlier this year with those capability.

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Speaker 1: Okay, so in earlier is this year? With that in mind,

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Speaker 1: what is your twenty twenty four global smartphone call outlook?

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Speaker 2: Difficult to make a call of the total market. I

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Speaker 2: think we're just happy that the market is now stable,

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Speaker 2: the correction is behind us, and let's see what our

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Speaker 2: partners can launch. Stay tuned. For example, what says I'm

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Speaker 2: going to announce soon. I think there's a lot of

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Speaker 2: excitement about the snap Dragon Age entry automotive.

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Speaker 1: You are very bullish and automotive, and you've tried to

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Speaker 1: position the company to diversify the company, but automotive is

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Speaker 1: a key pillar. Ten percent of revenue is kind of

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Speaker 1: the target twenty twenty six end of decade, nine billion

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Speaker 1: of sales. What data, it's your desk that tells you

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Speaker 1: you're on track for that.

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Speaker 2: Oh, we're on track. I think what we had said,

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Speaker 2: we're going to get to four billion fort milestone and

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Speaker 2: then we're going to get to the nine billion the

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Speaker 2: end of the decade. I think we're ahead of those targets.

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Speaker 2: What is really showing traction is the number of OEMs

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Speaker 2: that are being working with Qualcom and how we continue

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Speaker 2: to add to the pipeline of design. I think what's

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Speaker 2: resonating the car industry is transforming to a digital industry.

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Speaker 1: One qual complain as sorrys intructucy on same questions with

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Speaker 1: the smartphone or PC. What is the functionality If I'm

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Speaker 1: a customer, end user, that's going to change my mind

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Speaker 1: about buying this vehicle that has something it doesn't have

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Speaker 1: today the U A country.

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Speaker 2: Well you you already seen that. See the good thing

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Speaker 2: about tracking Qualcom progress for us, it's less about the

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Speaker 2: market size. It's more about gaining share and new models

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Speaker 2: are launching the technology. You can see some of the cars.

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Speaker 2: If you're going to buy a car today, let's just

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Speaker 2: say the Mercedes class, what GM is doing with their

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Speaker 2: car line and many others. You have a fully immersive

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Speaker 2: digital cockpit. You didn't have that before. That's enabled by

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Speaker 2: snap Dragon. Right now you have those beautiful screens that

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Speaker 2: are immersive and it brings you a lot of information

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Speaker 2: about the car the road. On top of that, you

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Speaker 2: have safety and we have a vision that assisted driving

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Speaker 2: needs to be in every car. For example, the announcement

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Speaker 2: we did the show and a partnership with Bosh, we

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Speaker 2: have now announced at the CS a central compute platform

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Speaker 2: that you can have ADS and a digital cockpit on

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Speaker 2: the same silicon, which basically you can do that for

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Speaker 2: premium cards. Now bring it to enter a level car.

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Speaker 2: Those are going to be completely different changes in how

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Speaker 2: you think about safety and how to think about your driving.

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Speaker 1: Christiana, we just have thirty seconds left. But where geographically

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Speaker 1: is the automotive growth coming from?

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Speaker 2: Which markets for us is across the board, Because you

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Speaker 2: should think about us as new models launcherwer technology, we

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Speaker 2: gain share. We're working with all the Americans, all the Europeans,

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Speaker 2: all the Koreans, all the Japanese, all the Chinese, so

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Speaker 2: pretty much the entire automotive industry. It would be hard

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Speaker 2: pressed to tell you a car company we're not working with.

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Speaker 1: Car Comcio Cristiana, I'm on live from cs Las Vegas,