WEBVTT - Ian King on Broadcom Earnings (Audio)

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<v Speaker 1>Well, Broadcom giving a strong sales forecast for the current quarter.

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<v Speaker 1>The company's positive outlooks suggests that it is sidestepping a

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<v Speaker 1>broader decline in ship demand, at least for now. Joining

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<v Speaker 1>us to discuss this, as Ian King Bloomberg News US

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<v Speaker 1>semiconductor reporter so Ian this may say more about Broadcom.

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<v Speaker 1>I was reading through the comments from Hawk Tan and

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<v Speaker 1>he referred to cloud service providers and enterprises doing really well,

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<v Speaker 1>But he actually said the demand was pretty good right

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<v Speaker 1>across the board. Is it that Hawk ten is considered

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<v Speaker 1>such a good operator and Broadcom has managed well that

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<v Speaker 1>it's more of a company's specific story, or is it

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<v Speaker 1>the market the market's okay. Well, I mean we just

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<v Speaker 1>had an hour a long call, as you've looked at

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<v Speaker 1>the transcript, and basically he got asked the same question

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<v Speaker 1>a number of different ways, which were you know, are

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<v Speaker 1>you sure? Are you sure that demand is good? You know,

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<v Speaker 1>how can you be sure and demand is good? And

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<v Speaker 1>you know he handled them pretty well. I mean, as

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<v Speaker 1>you were of O'Brien, this isn't the first time when

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<v Speaker 1>he's basically pointed out to people. Look, I've taken a

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<v Speaker 1>lot of steps to make sure that what I am

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<v Speaker 1>selling isn't going into inventory, is going into end devices.

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<v Speaker 1>So we have to take him with his word. Perhaps

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<v Speaker 1>he's just in some better markets than other companies. Perhaps

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<v Speaker 1>he just hasn't seen it yet. It's but you know,

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<v Speaker 1>you have to accept the integrity of what he said.

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<v Speaker 1>But it's does flow in the face of the industry

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<v Speaker 1>trend where you know, just perhaps this time last year

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<v Speaker 1>we saw shortages because of manufacturing snags and supply chains, etcetera.

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<v Speaker 1>And the most uh, semiconductor manufacturers have got invantory build up. Yeah,

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<v Speaker 1>I mean, that's that's making a good point. I think

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<v Speaker 1>though the distinction we have to make rishes that most

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<v Speaker 1>of the companies that have been talking and giving frankly,

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<v Speaker 1>as you say, some disastrous kind of projections and talking

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<v Speaker 1>about on news chips piling up have been you know,

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<v Speaker 1>connected in some way with the PC and computer industry,

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<v Speaker 1>and that really isn't what broke Coom does at all,

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<v Speaker 1>more in infrastructure and networking. And let's not forget Apple

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<v Speaker 1>because they're a big part of the iPhone So it

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<v Speaker 1>is possible that there, you know, that there is room

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<v Speaker 1>between what they do and what everybody else. It was

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<v Speaker 1>to sort of explain different end markets, but you're right,

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<v Speaker 1>it is striking. So there is this bifurcation though, right

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<v Speaker 1>as you as we talked about enterprise and and cloud,

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<v Speaker 1>that seems to be doing well. And if you're in

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<v Speaker 1>that area, if that's more of your focus, then you

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<v Speaker 1>can benefit. But if you're if you're servicing smartphones or PCs,

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<v Speaker 1>then you really have your work cut out for you. Yeah,

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<v Speaker 1>apart from the Apple situation, which I mean he refers

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<v Speaker 1>to them as a little edge North American handset manufacturer,

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<v Speaker 1>as if there were other handset manufacturers in North America. UM,

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<v Speaker 1>and he said, look, you know, the man has been

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<v Speaker 1>solid there, and he was pointing to, you know, what's

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<v Speaker 1>going to happen in the current quarter, which has as

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<v Speaker 1>we've reported, is when Apple is going to announce the

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<v Speaker 1>next iPhone, and he's saying, oh, you know, units are

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<v Speaker 1>going to be sort of about the same, which would

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<v Speaker 1>be good news, right, But that's kind of in line

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<v Speaker 1>with sum of the previous commentary, which has been the

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<v Speaker 1>high end smartphones have been sort of holding up a

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<v Speaker 1>lot stronger. Qualcom remember pointed to that it's been the

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<v Speaker 1>kind of cheapest stuff where we've seen demand decline. Ian

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<v Speaker 1>thanks so much, Ian King, Bloomberg News, u S Semiconductor Reporter,

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<v Speaker 1>interesting though today the cloud stocks all got hammered, and

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<v Speaker 1>Apple for one was up up about a half a

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<v Speaker 1>percent