Quidcom stock significantly higher around ten percent. The story. Things look like they're improving in the smartphone market globally, and within that there's a lot of nuance. There is specific action in China, and there's strength also for the chips that go into cars in the automotive sector. Delighted to say that Qualcomm CEO Christiano Andman joins us. Now, good morning to you, Christiano, and let let's start with China. What you guys said is that sales to Chinese handset makers serves forty percent in the first half. But I wonder what the story behind that is in the end market, what's happening, particularly with Android based platforms for the Chinese consumer.

Quidcom stock significantly higher around ten percent. The story. Things look like they're improving in the smartphone market globally, and within that there's a lot of nuance. There is specific action in China, and there's strength also for the chips that go into cars in the automotive sector. Delighted to say that Qualcomm CEO Christiano Andman joins us. Now, good morning to you, Christiano, and let let's start with China. What you guys said is that sales to Chinese handset makers serves forty percent in the first half. But I wonder what the story behind that is in the end market, what's happening, particularly with Android based platforms for the Chinese consumer.

Very good good morning to you as well. It's a great morning I think today. But look the story on Hins's in China, it's pretty simple. We've seen the market had stabilized. We had said about that a couple quarters ago, and users are buying better phonks.

Very good good morning to you as well. It's a great morning I think today. But look the story on Hins's in China, it's pretty simple. We've seen the market had stabilized. We had said about that a couple quarters ago, and users are buying better phonks.

It's really for us.

It's really for us.

A story of flagship and high years within the Android, especially a lot of the flagships that are launching with Genai. I think we see the very beginning of Genai coming to devices, and that actually drove you know, a lot of the growth and it's forty not only in this quarter, but actually expected to have the same in the next as we as we look at the guide, he has been a good story as the smartphone markets stabilize. It in the Android flagship has stay resilient.

A story of flagship and high years within the Android, especially a lot of the flagships that are launching with Genai. I think we see the very beginning of Genai coming to devices, and that actually drove you know, a lot of the growth and it's forty not only in this quarter, but actually expected to have the same in the next as we as we look at the guide, he has been a good story as the smartphone markets stabilize. It in the Android flagship has stay resilient.

Christiana, as you know and our audience knows. We will talk about on device when it comes to Generatorive AI. Let's just linger a moment longer on China. It looks like some of the domestic players that Android base are gaining market share against Apple and the iPhone. You see that in the IDC data, you see it in the Counterpoint research data. If that is the case, where the domestic players are gaining that market share, what does it mean for Qualcom.

Christiana, as you know and our audience knows. We will talk about on device when it comes to Generatorive AI. Let's just linger a moment longer on China. It looks like some of the domestic players that Android base are gaining market share against Apple and the iPhone. You see that in the IDC data, you see it in the Counterpoint research data. If that is the case, where the domestic players are gaining that market share, what does it mean for Qualcom.

Look the way you should think about our position in China in the Hintson market, we have been very focused on the premium and high tier with snap Dragon. So when an Android OEM from our customers show me OPO one plus on our Vivo when they're selling a flagship device, we have a lot of content.

Look the way you should think about our position in China in the Hintson market, we have been very focused on the premium and high tier with snap Dragon. So when an Android OEM from our customers show me OPO one plus on our Vivo when they're selling a flagship device, we have a lot of content.

Not only we have the modem content, but we have a lot of.

Not only we have the modem content, but we have a lot of.

The application processor, the AI engine, So that has been a positive development, and that's what is being driving the content increase and the ASP increase, especially when the mix changes to a premium device. The fact that the Android flagship in China with the Chinese OEMs had been stable, proven to be resilient, and see positive momentum at the mixed get richer Chinese users are buying a better phone. That's a good story for Qualcom and it's reflected in the numbers.

The application processor, the AI engine, So that has been a positive development, and that's what is being driving the content increase and the ASP increase, especially when the mix changes to a premium device. The fact that the Android flagship in China with the Chinese OEMs had been stable, proven to be resilient, and see positive momentum at the mixed get richer Chinese users are buying a better phone. That's a good story for Qualcom and it's reflected in the numbers.

Is there any anxiety from a political perspective, Christiana? You've obviously whathered the fact that you're only Huawei four G phones. Now you're actually seeing basically ultimately revenue pull away by the end of this year for Huawei. But the geopolitical context is clear. How difficult is it to you to be so dependent on China.

Is there any anxiety from a political perspective, Christiana? You've obviously whathered the fact that you're only Huawei four G phones. Now you're actually seeing basically ultimately revenue pull away by the end of this year for Huawei. But the geopolitical context is clear. How difficult is it to you to be so dependent on China.

Look, the first thing I want to say is our business is not just China, and I think what happened with this smartphone, this is a phenomenon globally. I think you even saw Samsung when they talk about it their earnings called they have a commentary about the device. AI opportunity for flagships is real. So the second part is the way we think about everything is if you have a leadership position in technology, you're going to have a big business in China. It's just a function of the size of the market. And I think that's been true not only for Qualcom, for a lot of other companies that have leadership product position.

Look, the first thing I want to say is our business is not just China, and I think what happened with this smartphone, this is a phenomenon globally. I think you even saw Samsung when they talk about it their earnings called they have a commentary about the device. AI opportunity for flagships is real. So the second part is the way we think about everything is if you have a leadership position in technology, you're going to have a big business in China. It's just a function of the size of the market. And I think that's been true not only for Qualcom, for a lot of other companies that have leadership product position.

And to this.

And to this.

Point, I think we have been seeing our business in China can continue to be a stable business. We have not been restricted by Like everybody else in the industry, you have to monitor the situation. I think this is how we have to navigate in the semi conductor industry. But we're happy with the results we have right now.

Point, I think we have been seeing our business in China can continue to be a stable business. We have not been restricted by Like everybody else in the industry, you have to monitor the situation. I think this is how we have to navigate in the semi conductor industry. But we're happy with the results we have right now.

Let's go therefore to the technology that is winning out and you talk about AI on device, how are people using it? You've got a snaptrack at eight series Jen three mobile platform that's really meant to be supporting generative AI at the moment, basically with a personal assistment assistant potentially, But how is that a reality for any or many?

Let's go therefore to the technology that is winning out and you talk about AI on device, how are people using it? You've got a snaptrack at eight series Jen three mobile platform that's really meant to be supporting generative AI at the moment, basically with a personal assistment assistant potentially, But how is that a reality for any or many?

Look, I love talking about this and I wish I had a lot of time, so I'm going to try to summarize it in just a few minutes.

Look, I love talking about this and I wish I had a lot of time, so I'm going to try to summarize it in just a few minutes.

The first thing that is happening.

The first thing that is happening.

You need to think about AI running on the cloud and the device is a new way of doing computing, and we're just at the very beginning of the use cases. So right now we can see, for example, multiple tens of use cases, and I expect that within six months from now will be hundreds, if not more. What are people doing with it? You see some use cases of life transfer. You can watch a video, you can add a subtitle in any language you want. You can do a lot of real time photo editing. You can change a lot of the images with the way you like it. You can create new images, you can summarize documents. But the most important thing is the other thing that it's going to bring the phones. So I'm going to give you a point to an example. More and more you do more things on the phone today, but there are things that you're going to think about it. You know what, I have to respond to this very long email. I'd rather wait until I get to my laptop. When you think about a Microsoft Copilot in the phone, for example, you're going to see a lot more use off those devices. We're going to see much much more productivity. So we're the beginning of something great. It's going to take some time. Use cases are developing. You should think about this what happened with the smartphone. In the beginning, there's just a few apps in the app store, but then all of a sudden, the apps started to define the user experience.

You need to think about AI running on the cloud and the device is a new way of doing computing, and we're just at the very beginning of the use cases. So right now we can see, for example, multiple tens of use cases, and I expect that within six months from now will be hundreds, if not more. What are people doing with it? You see some use cases of life transfer. You can watch a video, you can add a subtitle in any language you want. You can do a lot of real time photo editing. You can change a lot of the images with the way you like it. You can create new images, you can summarize documents. But the most important thing is the other thing that it's going to bring the phones. So I'm going to give you a point to an example. More and more you do more things on the phone today, but there are things that you're going to think about it. You know what, I have to respond to this very long email. I'd rather wait until I get to my laptop. When you think about a Microsoft Copilot in the phone, for example, you're going to see a lot more use off those devices. We're going to see much much more productivity. So we're the beginning of something great. It's going to take some time. Use cases are developing. You should think about this what happened with the smartphone. In the beginning, there's just a few apps in the app store, but then all of a sudden, the apps started to define the user experience.

That's how we feel about AI. We're at the beginning.

That's how we feel about AI. We're at the beginning.

It's going to take a little bit of time, but the signs are great for.

It's going to take a little bit of time, but the signs are great for.

Our Bloomberg television and radio audiences worldwide. We're speaking to the clowdcom CEO, Christiano Amon, and I think you summed it up well, Christiana. We are in the very early stages of a world where we're running ten billion parameter models locally on device on the smartphone side, but we're already talking about the AIPC.

Our Bloomberg television and radio audiences worldwide. We're speaking to the clowdcom CEO, Christiano Amon, and I think you summed it up well, Christiana. We are in the very early stages of a world where we're running ten billion parameter models locally on device on the smartphone side, but we're already talking about the AIPC.

Right.

Right.

You guys have your latest generation which will come to market, Snapdragon ten Elite and Plus, and it's very impressive combination of CPU, GPU, NPU. Give me a minute, we'll talk about MPU. But I still think a lot of people struggle to say, what am I going to do sitting in a cafe running a ten billion parameter model while I have a cappuccino, Like, what's the actual real world use case?

You guys have your latest generation which will come to market, Snapdragon ten Elite and Plus, and it's very impressive combination of CPU, GPU, NPU. Give me a minute, we'll talk about MPU. But I still think a lot of people struggle to say, what am I going to do sitting in a cafe running a ten billion parameter model while I have a cappuccino, Like, what's the actual real world use case?

Okay, you know, we could not be more excited about what's happened in PC. I really think PC is reborn with the Snapdragon Accalite. And it's not only because of the performance, but because actually AI. By the way, we can run twenty billion parameter on the ac elites. This is it's it's evolving very very fast. But the use case are really incredible. Think about now this AI running all the time. Everything you're doing on your PC, it is running, and it's private. It's your data, it's your use The ICE learning about you, stray to understand your intent. And we starting to see right now with the Microsoft Copilot that you can use the Copilot for everything, for PowerPoint, for Excel, for ward or email.

Okay, you know, we could not be more excited about what's happened in PC. I really think PC is reborn with the Snapdragon Accalite. And it's not only because of the performance, but because actually AI. By the way, we can run twenty billion parameter on the ac elites. This is it's it's evolving very very fast. But the use case are really incredible. Think about now this AI running all the time. Everything you're doing on your PC, it is running, and it's private. It's your data, it's your use The ICE learning about you, stray to understand your intent. And we starting to see right now with the Microsoft Copilot that you can use the Copilot for everything, for PowerPoint, for Excel, for ward or email.

But it's much more.

But it's much more.

The AI is helping you recall documents that you have on that you've seen or you have on your computer. It's going to help you do things, gonna reminding of things that you have to do, or even it's gonna help you with tasks that you need you don't know how to do it, and they will help you one step of the way. That's going to change how we use our computers. And the interesting thing is how do you do this in a way that you don't compromise battery life? A CPU and a GPU have a job to do. And that's why when you buy a PC today, you want a fest CPU and a fast GPU, but you need a whole new engine that needs to do something else and needs to do it all the time and not compromise battery life.

The AI is helping you recall documents that you have on that you've seen or you have on your computer. It's going to help you do things, gonna reminding of things that you have to do, or even it's gonna help you with tasks that you need you don't know how to do it, and they will help you one step of the way. That's going to change how we use our computers. And the interesting thing is how do you do this in a way that you don't compromise battery life? A CPU and a GPU have a job to do. And that's why when you buy a PC today, you want a fest CPU and a fast GPU, but you need a whole new engine that needs to do something else and needs to do it all the time and not compromise battery life.

That's the Qualcom story, and what is.

That's the Qualcom story, and what is.

The market share story of Qualcolm. We've been hearing a lot about other competitors getting into the AIPC space.

The market share story of Qualcolm. We've been hearing a lot about other competitors getting into the AIPC space.

I think this is the great story for Qualcom because we're new, we're just entering the market. I think we're going to see a lot of the devices coming up in the second half of this year. I encourage everybody to watch the Microsoft build and the incredible things they're doing with the new Windows, and I think what's going to happen is Qualcom is coming in with the leadership product.

I think this is the great story for Qualcom because we're new, we're just entering the market. I think we're going to see a lot of the devices coming up in the second half of this year. I encourage everybody to watch the Microsoft build and the incredible things they're doing with the new Windows, and I think what's going to happen is Qualcom is coming in with the leadership product.

We like the design traction.

We like the design traction.

Financially, that's going to be more of a fiscal twenty five event because a lot of the laptops are going to be in the shelves for the second half and back to school. But the product momentum is great. And here's how we should think about Qualcom market share in general. One thing about the company, and we and it's been the history of the company. Everything that we set ourselves to do. The track record is actually not bad. When we entered the Wi Fi or we became number one, we entered the rfron end, we became number one automotive. We said we're going to go into automotive. I think our story there is very, very good. We're becoming the prefer partner of the industry. We said we're going to enter the metaphorse. We have every single design. Now we're saying we're going to enter the PC and we started off the gate with the leadership and the product. So you know, as we continue to execute, time is going to show that we can gain share and can be a significant player.

Financially, that's going to be more of a fiscal twenty five event because a lot of the laptops are going to be in the shelves for the second half and back to school. But the product momentum is great. And here's how we should think about Qualcom market share in general. One thing about the company, and we and it's been the history of the company. Everything that we set ourselves to do. The track record is actually not bad. When we entered the Wi Fi or we became number one, we entered the rfron end, we became number one automotive. We said we're going to go into automotive. I think our story there is very, very good. We're becoming the prefer partner of the industry. We said we're going to enter the metaphorse. We have every single design. Now we're saying we're going to enter the PC and we started off the gate with the leadership and the product. So you know, as we continue to execute, time is going to show that we can gain share and can be a significant player.

After that is going to be industrial.

After that is going to be industrial.

As we continue to execute on the growth, diversification of the company, fight

As we continue to execute on the growth, diversification of the company, fight

Into quill Com CEO Cristiano Amon, we thank you for bringing the energy today.

Into quill Com CEO Cristiano Amon, we thank you for bringing the energy today.