QCOM - Earnings call transcript Q1 2022

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Operator

Ladies and gentlemen, thank you for standing by. Welcome to the Qualcomm First Quarter Fiscal 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session. [Operator Instructions] Please limit your questions to one question and one follow up.

conference recorded, this X, reminder, a is February being XXXX. As is number for playback XXX-XXX-XXXX. today's The call International callers, XXX-XXX-XXXX. please dial The playback reservation number is XXXXXXXX. I of turn Lopez-Hodoyan, would the call over to now to Vice Investor President Relations. like Mauricio Mr. ahead. Lopez-Hodoyan, please go

Mauricio Lopez-Hodoyan

and by Amon remarks you, include Palkhiwala. Cristiano good call and Today's Thank will everyone. prepared Akash afternoon,

In addition, join session. Rogers question-and-answer will Alex the

call our Relations website. Investor access a can our release You slide presentation on and earnings that accompany this

today. on qualcomm.com, In addition, and on our this website be will webcast later call a available is replay being

today, use reconciliations can will measures on defined call financial the you During website. and in we find as non-GAAP our Regulation to G, related the GAAP

differ to make also including our Chief from differ And our important in President statements. or from will future XX-K, factors or results which those from events, Qualcomm's Please could projections recent now or forward-looking the contain refer most forward-looking to Amon. cause We forward-looking Officer, statements. Cristiano could and business actual estimates events comments of materially statements, including materially SEC Actual that financial our projected trends industry to Executive results. business filings, results and or

Cristiano Amon

and performance everyone. the you, enabling as digital connected as on technology working. is is driving driving map and Based joining past the our well cloud our quarter our connected the which road solutions premium and economy. one it fiscal strong Thank accelerate, us of that Android to for products Mauricio, several smartphones, as continues intelligent transformation growth is today. the for Thanks edge, our strategy second afternoon, good quarters guidance, the clear over is Demand for

our fiscal record today, licensing revenues results $XX.X first chipset $X.XX. per and record and led As you business can see our earnings of billion strong of share quarter to non-GAAP performance from in

and Acer, and momentum, any EBT of connected first results in of number enterprise And next-generation with company. quarter strong QCT of versus our X continued broad recently strong of consecutive demonstrate X-in-X all introduced second Windows convergence new of Microsoft Snapdragon in Xcx Lenovo total for testing We're at exceeded Android revenues we have the In success of X mobile its tablets, premium PC drive positions $X.X fabless already support and those and/or consumer, or billion We continue ASUS, premium well or strategy. semiconductor of Xc+ These HP, highlighting 'XX. platforms, as with as In the EBT with had consumer the tablet revenues X. on revenue record of design NUVIA to we of edge year-over-year including industry doubled deploying in business collaboration partners, fiscal of we devices. tier chipset XX%. our growth seeing laptops. transition ecosystem the wins XX% launch CES, currently diversification margin to highlighted XXX $X.X the Gen further and acquisition also the Gen Notably, investments, from high-tier billion, uniquely PC. across in and performance and of Our laptops pipeline customers Notably, the growth Microsoft early see the to ARM-based us recent networking and IoT, industrial. quarter computing IoT,

Snapdragon AR as developer also mesh. partnership XE Wi-Fi to the chips and deliver includes of custom This access Spaces a than pleased edge first Magazine which We're support integrate now creators. Microsoft and in plans launched to for Additionally, our with we well virtually a high-performance ecosystem and platform consumer And wave key with build XXXX. in VR revenues. platform continue XX% X Magazine. platform industry announced players, solutions, we to NETGEAR, collaboration devices next-generation At of best as we're and opportunity expand we ecosystem of to as the networking, XR accelerate one and power-efficient, make more the match by of and augmented AR and to from enterprise materializes, of our new which we with rich enable that the to lead experiences lightweight mesh Metaverse continue Microsoft. reality VR Wi-Fi position AR XE our Microsoft current point the content WiFi very was Meta up world's seeing Wi-Fi OEMs inventions quad-band and strong AR PC In and Snapdragon both on sectors. Time glasses Recently, leadership in platforms immersive CES, our named adoption into our rated including XRX the system as all providers, best-in-class

home continue X significant one deployments. platforms Wi-Fi regions, wireless expand XG gain China, expanding now fastest-growing our Wi-Fi and globally. markets both growth the to with to gain for for of across momentum scale continues immersive as Additionally, retail carrier X and fiber into

fixed platforms, XG early include access for with we continues solutions to traction. our range demand expanded strong wave we're the industrial, and millimeter seeing range in portfolio extended still of our across digital our transformation extended And to recently industries. addition wireless we're sub-X, accelerate. In phases solutions In to many

front our As reflects platform on-device successfully include which The platforms year-over-year, meter, year. vision, and provide modules, XX% ability technology. more that and we applications launches now in warehouse advanced integrates assistance. XG by automation specifically, launched product of expect from to applications to 'XX a end, robotics, RF public an ultraBAW vertical in-home low-power delivery our computer spanning our total increase computing example, connectivity using over than to revenues smart last double services industry-leading latest and utility and high diversity performance In tracking In common over fiscal safety, AI, our robotics segments retail combined we the technologies.

enhancing X seeing filter our our traction is of generation include wins Gen our strategy modem-to-antenna X modem-to-antenna on Notably, success virtually solution handsets, and we're in Snapdragon. technology. automotive Our now all and with Qualcomm IoT. average working, with Snapdragon performance design power ultraBAW Building across

automotive, address technology of content the vehicle, for automobile $XX becoming well X. Qualcomm map is we're of RF we're the per platform. choice RF partner digital cloud-connected front we're XG to intersecting the a to of road with examples, and enabling and transition the In end also industry, up our positioned Wi-Fi As to

an for multiple and position digital innovative platform telematics, and the scalable chassis cloud-enabled systems leading uniquely software, Our connectivity, domains. as open is and provider us for Snapdragon services digital and system cockpit solution ADAS, across silicon,

next-generation platform, are that entry-tier It our Arriver. enhanced various As and scales combines cornerstone now the with front System, functions including front for an Snapdragon to comprehensive the perception vision vehicle, ADAS. camera vision enhanced a CES, our reminder, a applications to from autonomy Renault compute new Snapdragon perception Motors, Ride the Ride addition from solution we BMW Group software surround General view across Vision and camera At in-cap computer customers our the it modular ADAS SoCs around platform, announced and autonomy. and supports for needed for

the Alliance. first more. sensor premium solution way XX XX enhancements Snapdragon announced X Tech Snapdragon expect is most million We security by XX-bit Snapdragon for in speeds. available The the Gen people mobile technology Snapdragon our the advanced to Ride at viewed production with In Vision Summit. to with Android-ready announcement Snapdragon world's platform Secure world's the the Element reach RF, first we be modem It's platform to of recently in our flagship to gigabit X than new XG XG X first news XXXX. mobile handsets, leads AI, Gen X a more was X Gen era category-defining X annual across The the worldwide. the System include modern mobile image RF and commercial download camera, compliant gaming, and smartphones,

we is With the XG than We business, new due positioned first a favorable to XG tier. every XXX well have cycle address to mix quarter across to and QTL series our the longer of application license life licensing generations shipments. continue announced customer mobile expect to Snapdragon demand results every over reflect multiple industries. also its across In prior in strength platforms for broad in agreements, smartphone smartphone global a future,

provide Despite continues improvements the I challenges the Akash. of over our exceed supply. to to across to and demand chain, global ongoing would will technologies strong supply our throughout turn the Lastly, across initiatives year. remains call incremental supply like multisourcing now capacity expansion all and to our

Akash Palkhiwala

Cristiano you, and good afternoon everyone. Thank

pleased report record strength of strong quarter extremely results earnings, $X.XX. revenues consecutive QCT These non-GAAP increases both XX%, across our second driven our are delivered to by $XX.X We respectively, to We billion start year-over-year and results of of fiscal EPS and with of year. XX% QTL. reflect non-GAAP and

six points surpassed $X.X driven our QCT, the quarter up year the record respectively EBT by in revenues ago Handset from this Snapdragon year-over-year margins guidance year with XX% billion fourth the $X and of ago scale ago the of of demand of QCT quarter. and due of was For of revenues increased versus quarter. XX%, the $X.X revenue increased XX% to billion, and and another range end versus revenues $X.X XX% reflecting for into of billion mentioned quarter versus greater year growth X% XX% revenues leverage. front-end Android RF grew pull-in operating previously quarter, devices. billion chipsets EBT than fiscal

across the QTL grew of the revenues increase the were of XX% connected to recorded continued handset These to continued across billion for was strength all wins a cloud year-over-year, for design industrial on and the strong margins edge which up Android of revenues EBT front-end chassis. XX% and XX% year ago XX%, our quarter. reflect OEMs. year-over-year our see the IoT versus of least mix of ago slightly grew edge XX% by than $X.X compared consumer, of results by greater on Each favorable year-over-year shipments. categories revenues higher Automotive devices. devices we midpoint above our digital quarter Our billion, Snapdragon to at major as an RF XX% and We intelligent guidance. traction $X.X the networking, year of grew revenues million demand $XXX

second Turning and for handsets quarter. guidance the global to fiscal our

X% For million calendar XG handsets. approximately consistent handsets previous guidance, we including XXXX, XG with XG, grew year-over-year, global estimate XG, XXX the

with our XXX no than XXXX, there handsets. calendar provided Investor the forecast greater XG For million is change to at Day

of At revenue this quarter, and of billion $X. forecasting $XX $X.X EBT For and EPS the $X.X EBT XX%. growth expect of billion. non-GAAP to margins of year-over-year revenues we to fiscal and XX% $XX.X revenues implies billion of to dollar $X.X growth to billion second QCT, midpoint, the of are XX% In we billion $X.XX

to and premium sequentially as the additional mid-tiers For revenues increase Android is shipments due devices. revenues by our Apple of offset revenue Within handsets efforts. we end, line by driven from second our RF to in in Snapdragon new decline the and in is chipset continued high growth expect in front and launch handsets, revenues across seasonal be Android sourcing

quarter. estimate We normal billion streams. that holiday strong we at sequential to and and We pre-COVID costs. in X% This in anticipate and be expenses of billion to margins trends initiatives we The Additionally, following $X.XX Investor year-over-year revenue calendar long-term revenues including EBT expect operating select related the seasonality, of year certain X% XX% normal sequentially reflects our QTL $X.XX up growth growth strong the IoT automotive XX%. reflects employee on resets to increase Day. for investments remaining outlined our non-GAAP to

quarter, third are Looking than EPS growth fiscal year-over-year we forward XX%. non-GAAP greater of to forecasting the

the QCT, the new New Year and the following Snapdragon this second launch in quarter. premium For chipset Chinese of reflect our seasonality purchases

OEMs. QCT next major year, launch with half the point of in to new expect calendar the the of inflection be XG across handsets in second several We

report published power company and our including we which Snapdragon our sustainability, diversity efficiency annual products. and environmental outlines our and inclusion, ESG of Lastly, targets, responsibility progress corporate wide yesterday, against

responsible been the third list We consecutive organizations, are to Jones Back by company making Sustainability to Dow the pleased Mauricio. recognized and several Index year. for you. Thank most Newsweek's including have you,

Mauricio Lopez-Hodoyan

are Thank now you, questions. Operator, for Akash. we ready

Operator

JPMorgan. Thank from question the with of Our line [Operator Samik Instructions] first you. proceed. Chatterjee is Please

Samik Chatterjee

my taking congrats phones with the guess, think mentioned start about and I I of Android had with the both tablets. launches doubling questions, talked the you and strong on if with results. customers I for Thanks you've pace Android. you And launch in can -- that

already first the about remainder think much first we run fiscal beyond in of the December continuing gains how -- And share beyond you the that should color half some first is for that launches the your and is year year this for or of with March, to rate? the about I remainder the a of Android the of then And to for think share half, how how you look we is have on As half If you weighted like can much the year? share of for follow-up, please. gains the Android. how

Cristiano Amon

Cristiano. Look, is this Android is Hi, a Samik, us. for success story

we what shared is quarter within to Qualcomm, seen tend shifts and we've And that benefiting seen share tiers. and [ph] said China we've this market have the of premium OEM new in in we This Qualcomm growth significant the we in as growth continues opportunity. validate saw before. high in reflected

So to to happened quarter. XX% the what I'll a of on the seasonality. highlight handsets over shift Akash Android. continues was to year-over-year it within be story. in It And about growth Akash talk the outlined

Akash Palkhiwala

I something is think sustain us that'll forward. Samik, this for going Yes.

We in as are in very numbers. a you the strong position see

product well. is portfolio as Our very strong

see forward, So we this go we to as benefit in financials. keep to our -- continue expect

Samik Chatterjee

improvement what in you're realizing it. follow-up, I terms And source better just got be Yes, If in there. just can But Do about in you Or it second update about of, take know the you during my the an talked supply thinking revenues. if year? to the get supply want of helping you give where can here? on the with how seeing of you for terms you're longer? to about you cadence terms talk does us of obviously,

Akash Palkhiwala

Sure.

the the across strong board. mentioned demand, prepared as overall, in So remarks, extremely his Cristiano

we are demand see outpacing supply. so And to continuing

performance. these our sourcing plans up you benefit three well. that place parts anticipating additional parts, the are that, the process, we second early have in of very the and We in coming shipping as that seeing right? especially in up in have now, had rightly we scale And As mid put of tiers you're at high shows financial some And mentioned, challenges.

So something that's us. definitely that's helping

we're second from well. that's suppliers, playing builds a capacity our role and The is of seeing as some

forward, through we we expect, to into entire factored you where look improve guidance. the our continue are now. And As expect obviously, to to supply as gradually this in year, at is picture, addition you'd

Cristiano Amon

other we Nothing Look, it's supply than, improvements. terms, see to add, more simple in Cristiano.

if -- visibility have the ship in Our supply. forward contemplates supply. we guide, than we We'll we have more, it demand still And but more could.

Operator

you. Thank

is next Please James. Caso coming Raymond Chris question from your with question. with Our proceed

Chris Caso

the It's June Can Good to Yes. half a color not evening. about ask little quarter commentary Thank calendar you. about commentary your on the year, to you in of color typical there. provide second advance. you that? more I wanted and give two the quarters the for

little of perhaps bit supply why a balance calendar demand year. of function talk imagine the about allowing I doing of purposeful Is So it's on, the you're second half supply that. really more coming year? maybe And get to as and the a to that half you of you the second calendar

Akash Palkhiwala

the question. Sure, for Chris. Thanks

fiscal Investor that a we So, exceed how overall, long-term very very very, happy with to in look our playing year ahead when position puts out you us. at obviously and is are well our us We're plan. for And meet Day the targets. tracking strong year, of

And opportunity look quarter, that, quarter, as XX%, third you us launches at beyond inflection go If half of the across projecting OEMs. well, additional you EPS that. kind growth -- phone with beyond least fiscal at that's next as point an major into then you the outperformance, we launches first get as we know in for into of the the -- several September are

strong all expecting So front to and automotive we're year-over-year quarter the at are and as we RF -- continue handsets end, the going fiscal very look well. to of in beyond year-over-year half go you strong show as we XXXX, second very growth IoT Also, to look September year. through when we're poised growth

had XXXX up XXXX. generally, back, year-over-year that, Fiscal very strong very So, is rates. half shaping step you just strong second a when we growth like fiscal

Chris Caso

very Thanks. That's helpful.

on at at XX% to least saying Based XXXX you're about ahead growth. fiscal what Analyst the XXXX that you Any also again, addition fiscal on you're for presented you well. Day, EPS for update like as In guidance? guidance seems talked goals it June, longer-term the of well that commentary

Akash Palkhiwala

the a think reasonable Yes. the on and conclusion. updating tracking guidance fiscal Chris, quarter based drawing fourth, But third ahead conclusion. quarter number you're well gave have it. very not what and comments right the I is that's of for We're second yet. you that We're on fiscal I the that

Operator

Thank you.

question with is Our with Sachs. Please proceed Hall from next question. coming your Rod Goldman

Rod Hall

the Appreciate for just contribution. this a looking look question. guys. I been a Thanks, was at taking marginal while, the Yes. we've quarter-on-quarter and

if you QCT of then at revenue? EBT could is the in follow-up. it there effect that XX% the color I'm maybe on look how revenue, And of that new calculating this contribution, So margin some any Thanks. some change in of scaling and being the much wonder a And marginal quarter. in change but way sales much at I there's on I how least the scaling, is just QCT us the in higher is and I marginal if I have know give

Akash Palkhiwala

Rod, confirm just to and Akash. is this --

about to for confirm, was December quarter? the actuals your Just the question

Rod Hall

Yes.

all So quarter the September put of EBT done December over the is I've taken EBT Akash, difference. quarter what it of the revenue the and less the

Akash Palkhiwala

Correct. Correct. Great.

I story. it's a So think great

benefiting combination benefiting seeing revenue strength of us. X leverage business. us. Gross You're the also operating all You of drivers, scale then right? margin a quarter-over-quarter have And

a great for it's we're a pretty margins you long well, XX% And look really for all not of great. is as When that benchmark combination margin us. us. performance just excited time gross at highest in So the It's was X. a margin operating

we're going about So pretty with are and where excited we it. at where

Rod Hall

maybe you, X the or about -- so comment environment what on. Great. noise little market could Thanks. next in the the And anticipate wonder X Android -- I seeing and a on follow-up, bit you're there's wanted on months? Cristiano, chip what of you competitive Thanks. there, maybe then And I you if the just been seeing my on in to competition could lot upcoming you comment ask a high-end

Cristiano Amon

do it. to Happy

coming one Look, as about answered. answer unfolds from the Akash continue roadmap the that we to to this non-handset map. revenue accretive prior margins, been it what that's towards I really QCT leverage as all to exactly that that think question, that of question reflected Before and we've technology in and add the be able or the to are and story scale gives want see more I numbers. is is diversification to our one the business, strategy to I thing our the think just will business, us you talking I And scales, road more

Look, that in. very are. done Snapdragon When the United we're question of usually Now Android. in locations the X XX series, competition, remarks. flagship launch event. we my Snapdragon prepared in tier I of without views the about thinking different we do single It's that we where in Not the back launched -- China. to in not your simultaneously as in that metric provided on had a of brand becoming strong to customers we have Snapdragon X happy we our is new And be a preferred States premium X position very a think both well for series. million one

plenty and for betting that will be the And happened on Snapdragon and of brand. tier, our China, is at Android reality that we'll to look As OEM gains our into of for turn handset And the as our customers in we're have we grow. the continue the us of now. expect good results, to more to to share why shift I That's share that the our customers of competitors story market seeing Qualcomm. and is, more grow there's premium move opportunity right business the

Operator

you. Thank

Our is Canaccord with the from next line question. your Please with of proceed Mike coming question Walkley Genuity.

Mike Walkley

$XX penetrating further the do opportunity have think Congratulations guess previously me of highlighted, you question the benefiting first SAM? I guidance? how year for how that to you've SAM within half in And much also. that you go results on that Android think Thanks. this of you much the billion on

Akash Palkhiwala

it. is our really tier, also Honor, opportunity going Yes. Mike, the tier, Vivo, What's Akash. to they us OPPO, a up this gives tap of as happening And just picking $XX it up they're with OEM change Xiaomi, is high opportunity premium Cristiano the share up pick as with into mix billion go China, and and SAM the all into all share. tremendous in customers, outlined, the

a remarks. to it working still our done we've So our we think prepared being an SAM continue on obviously, through, lot sources also going that into expand mentioned We but opportunity to in is forward. of the that products that there great, second

Mike Walkley

Right. And question. just my follow-up

handset of start prioritized maybe it of quarter strong the you premium first terms year, tier I outstripping a we Android that in supply. think half you previously quarter? talked And IoT sequential accelerate you've softer close businesses supply-demand the and about Is and kind of highlighted trend? the automotive maybe to balance maybe handsets. growth demand to Should to start those in June a the see get

Akash Palkhiwala

that demands, Yes, certain can on Mike. bias directions a definitely that. -- if based supply advantage make that's decision We're we we in where the take definitely the we of market

so definitely we something as that it's we'll to the get And do quarter. June

Cristiano Amon

Cristiano. is This

add just -- want product our demand thing. lines. to me I one We're seeing We're Let now. supply hopefully, of explain. all right for than demand will seeing this more

the but I prioritize the continues position fortunate the rate be in you within launches. said prior to XX% quarter, very and this think think up, growth Android in. about Chinese as business, be handset you supply, high I for New Android, the quarters, growth very see we did on to think of we're we When demand a Year

demand still more business. have the supply growth all will than We in

I as inflection good to through next to it's is and As for And guide. business, I go forward is next the see to our growing, be September the expect the improvements quarter, as the season, and demand of thing. able we handsets could our business. year, continue a reflected how is think with happy in and unfolding. Having said point growth year drive picture you're the the is then growth in the supply supply going that, our said, We're holiday we a lot go we'll up, all And which business throughout to very non-handset quarter. continue

Operator

Thank you.

Research. Please question. proceed with is coming question Our with from Bernstein Stacy Rasgon your next

Stacy Rasgon

for my questions. Thanks guys. taking Hi,

them. about gross that probably points. versus if margin the to the First, that find March. think quarter. should room up that don't were just strength then margins I as Android think quarter? margins drove some given the the should mix But the But for basis of you hundred do March you I I stare the of in next in Was actually the we that that at chipset report which into talked strength ask you they the of sort of couple And margins. margin I into And of that know how just adjacencies, of it, adjacencies I expansion interesting I about there handsets have mean relative we about wanted a sort more the I higher reverses? think have into growing as go sequentially is higher quarter?

Akash Palkhiwala

Yes. it's Akash. Stacy,

combination still the to the you're high market. Within the through, at you'll outside especially in handsets, we non-handsets seeing that selling adjacent as margin optimistic being we're consumed, gross businesses a see continuing as benefit of, And of the that into the we helping obviously, Android and picture. gross guidance be it's come end high-tier are So margin. premium and gave, are the devices with

Stacy Rasgon

That's helpful. Got it.

For my about buyback. to the I wanted follow-up, ask

the cash about looks a continue quarter. It like talked being going a capital it the be But And level. that given go we're I down. is bought it's quite about didn't count stock, does this the be buyback quarter, thinking the we I return Should I you structural more seeing you thinking share guide really on And given believe, in I a share come You down the Analyst noticed at down think through share of look lower. guess anti-dilutive. generation? year bit little the seeing? we should how back are counts Day, to count the we about buybacks forward like only

Akash Palkhiwala

top focus framework can no on buybacks on change We're buybacks additional and look before. Stacy, anti-dilutive given to we've of that, continuing opportunistically do on we for prioritized on buybacks. if that the --

up, our you're the doesn't change. of framework is showing that And in a so what quarter fundamentally, portion but seeing

Operator

Thank you.

next from question. Liani Tal is proceed Our America. coming question of of with line the your Bank with Please

Tal Liani

Hi. I have two questions.

question at said is strong, suppliers one very them guidance that then noted the in any concentration reversion going be mean. of any might a handsets to this but weak concerns that of be any reducing for there later were I have -- is first orders because is the orders some quarter that And might abnormal other there's that is, be that behavior QCT reducing over big March to is June on? first Apple you my this The there one orders of gives least question. the customer That's for

Akash Palkhiwala

-- mean We're Tal, going nothing Yes. to there across there. pattern I isn't look have quarters. story. Sure. a the is going Apple to buying their

will on specific But through. really, a And so Android that we're and flow isn't market, focus is worried story there that our the about there.

good, Our position looks is and design traction great. going forward

Tal Liani

Okay.

can look But well RF, I I consensus revenues, look quarter. it, when are above the at estimates. just or seasonality? And below handsets? should consensus all, handset and part you And IoT, are wondering, non-handset markets at can reported to we don't I'm these What auto slightly about we but new speaking. is and there markets, -- know second then for for question, RF of the discuss you estimates any -- you how think The these first quarter relatively maybe seasonality below -- here? What as the of discuss

Akash Palkhiwala

Sure. Yes.

in call, strong in definitely we in forward, some other you'll opportunities. We previous reflected our great demand the earnings as of being had new business. And businesses. each guidance. see go It's over business areas. quarter growth as a the December Still said those rates at prioritized ramp that Tal, we handset those for So, of

quarter growth said my year-over-year see I strong remarks, to we sequential and IoT in prepared growth. As strong auto also the and a expect in second

you As at trend, strong the see growth the the going the of same second year, you're year-over-year board. to look across half

Operator

coming Please line proceed with Bank. Seymore from question. your is of question Deutsche with the next Our Ross

Ross Seymore

it side Hi for I more Whether is ask those aligned the your assuming wanted of but passing side using not letting revenue or are I'm we the see coming margin this be the is equation me get of you is not? seeing to equation. increasing. guys. the pricing Should you to how along Are side questions. some Thanks accretive? from Costs tailwind? Akash, are what trying of on as Everybody better a who sure Is strategy a year-over-year things is And that costs? supply. to, price goodness the or few the that we're it's Cristiano price on of

Cristiano Amon

This Cristiano. the question. Ross. Thanks, for is Thanks

very probably more therefore, devices, devices, think -- new that the increases. Here's lot of semiconductor been we're value focused impacted offer. how the about of technology. a you premium high-tier One we platform should separate it's high-value us, of we've about thing cost by kind it. in It's less and And,

The the I said, answer of earlier. second part what we think, is

And highly IoT. to scale, really XXX think, the and and the And in technology really story key margins. becomes the profitable, the use serve business accretive one to markets, of gains into Snapdragon with is The Plus, gained automotive connectivity more as processor. roadmap technology our our the we R&D application scale I story. mobile, premium those and and offerings. processing we processor is application are not key the modem. Our the in It scales. we have It's Android, Android product

reflected factor, those things it's XX% So and in QCT margin. the two operating have a

Ross Seymore

one than traditional Thanks and takes it Any does seasonally. be would color. line? as for March side your that on the is of year quarter in Akash, the that looks of different guidance, probably your my the follow-up, seasonality typically for like I doing puts rest what It the in OpEx up the guess for things.

Akash Palkhiwala

closed mind to It with be with forward. Veoneer trend the should overall, historical. become really. one seasonality. there's Not they'll keep The thing in going OpEx factor in trend our we you be is transaction, But to our consistent -- a historical will the as expect consistent

Operator

Thank you.

from Our with next question is coming Please question. your Cowen. proceed Matt Ramsay with

Matt Ramsay

about more devices. Thank we products. takes months you forward in very supply set if cetera use here to more much. to phones, and and I've your wafers I kit to can in is, of where six what maybe a semis, control been aligned pushing reference in the in Good has design types on generate get the be to of push designs? issues of afternoon and components two, you're an the and your match [ph] everybody. attach implications that hearing end a of remainder the demand Qualcomm for your scale all OEM calls finding have to to for strictly help a -- people your to wanted Cristiano, be components might other Qualcomm wonder do customers scale advantage, is issues your around the making products last one. the does rates about the But going your focused on lot for et RF conversation make of heard lot by And versus we're those I expect closely make those customers number designs. reference of the revenue more you Thanks. And that and I that kitting to

Cristiano Amon

the for Thanks question.

this yes. pick transceiver Series was Here going just product solution attach. across at -- but the to when is end we attach. front we here. chipset try need Look, we management customers, entire and it's capacity Yes, nodes. for the node And a of thing lot it of -- has a IC. a Snapdragon X, The provide number I talked example day, It to has it's of We leading X our about I'll different SoC, simple answer. end to example. has and Generation a a power provide a complicated an when talk,

support those management the we we IC across work to when foundries. both power things so our put or So or when growth about been example, of think as capacity plans handsets in four we transceiver, think even building expansion like an you And a with we and different our five supply in multi-sourcing all technologies. have capacity place, products business, have

supply semiconductor everything. So it in the shortage, chain is across

Now able make capacity and capacity And we put in navigate to get through this. multisourcing, long-term said Two having been long-term position part the have scale We we answer of to the ourselves, to planning high that, on that helpful us very have One second our ability has very helpful. for Qualcomm. a have also, is, has vendors. is to the commitments predictability scale on and our have the be been we good utilize demand. bet can therefore, things from the that

But and than even so going the been XXXX. seasonality the what the how of Now we repeat growth think we supply, is said, very good handsets we've I'll have demand guide business. having supply said rates was the happy as managing, between get better as though I second I and and quarter, -- to said more get half to still how the before, that, we growth the we're with

Matt Ramsay

you Thank that. for helpful. Very

follow-up. as Just a

quickly. the little on irons presented a at I you give if around Investor Day, guys you with was more Ultra have you fire in business, of and compelling surprised ADAS story GM but Maybe Cruise a auto relationship very a behind profile. similar so announcement that the Congrats if details that other Thanks. that. could the the bit bit On

Cristiano Amon

the short something is happened separate for an period think super really else. I us a happening time. is that And for is automotive, We're Qualcomm. has about very from of question. we Automotive everything opportunity have Thanks It's in very incredible excited everybody unique.

the announced up of It's chassis. of ability beginning approach the At both that digital things as And in of to having It's having Qualcomm. the something So that And about and not of towards it's looking GM cornerstone is domains, platform more mobile, telematics, forward. proud announced should lot and a a in as entire we're a is, the component. immersive capabilities which ADAS chassis of cloud, we a some as for Renault we're We connecting story and cockpit entire have Ultra platform a platform. in into plus on having expect just customer to have other we chassis automobile. key technology and a car to said, the take Analyst all of also is Day. the take was be from take Cruise them, Cruise, addition and the think we chassis. recognized the of look course, irons the we it's our to I one, but capability Super with of another and and, service only work ADAS, in about BMW super the not creating experience a to digital the autonomy, down an digital -- done every tier overall, the good going CES, we actually the scale fire. we the wins automotive ADAS design can you that a with

Operator

you. Thank

with Your Moore Please next question question. Joe from your with is Morgan coming Stanley. proceed

Joe Moore

you what millimeter metrics wave Thank I overall. And the growth look of as handsets, factor? broadly roll more to should talk out an ability RF Or kind RF are how content just kind with at we handsets Great. in year, million of are overall you year? wonder you. about about for businesses keep the could important thinking the sort is for the the XXX XG RF pace of it next if

Akash Palkhiwala

Akash. its Joe, Sure.

If you as target and RF change achieve out. that we Analyst go on-track we for target set there, playing out no business, position back Day is us 'XX It's laid expected. that to we at the what the we said really, the to to

as with the RF and most but handsets. And WiFi opportunities with You IoT should we're to well. just also have then RF not handsets, and and is today, of automotive, XG business think of XG RF as going

in growth we front of of tremendous opportunities Day upside the did that's not think We that that have of millimeter handsets On Analyst wave, assumptions of us. at guidance millimeter of globally. wave growth opportunity. gave any an outside heroic So as

Joe Moore

you. Thank Great.

Operator

you. Thank

with with the line question. Research. of Simpson question coming is final Arete your from Our Please proceed Brett

Brett Simpson

very have thanks much. a I for question Yes, Cristiano.

typical about But we of a new seen last get some meaningful launches talked that this volatility in buildup guess customers. smartphones, product launches we we've the Chinese when any year. in of June on sort Year And lot of new should this Is of look in China quarter. Nothing sort Android premium sell-in versus ahead I Android kind guess expect? strength You from New at Chinese quarter. year, I you didn't China, sell-through last

more to around little we'd customers June look from just demand and in Chinese I'm keen expect? So the things get bit quarters your as than a perspective March volatile

Cristiano Amon

see think No, we've in it's Android, you a question. of Android to for us the about on think about call, you talk as a having when the handset right been growth trying I great this for now. lot and And growth revenue

bit season. our and saw next the also of New because inflection holiday premium all high this growth sequential -- we we and towards we're I puts the continue the in the have And high and the the think some we're concentrated tier. impacted tier Chinese You demand that that Year. have more we by premium And point more will And XX% have handsets. think less in skewed and of to in mid been tiers, little That's of you and of And takes the year-over-year Android, towards market then growth. is the see a low contemplated we -- I guide. be And high. because see

Brett Simpson

do especially don't Windows X I this have you you mean a is just but some on maybe perspective bit years, last, project? just guys And can us, X market led share Cristiano. share X on with Thanks Thanks. -- over Great. NUVIA give asset the with command and Any about of McKenna talk I out? to a a us this platform ambitions? or you what see the Windows opportunity now I or mean and follow-up your ambitions of you can share can know, the think ARM. an and something with you've view sort [ph] you ecosystem ARM how playing got that X-year on sort

Cristiano Amon

portion to midterm. a the Great for short day, At the consistent been then question. and it's look end Look, and Qualcomm, have we market of inevitable very talk PC about clear about ARM you're very and connected vision. talk of this let's term, we towards our The big the platform. way that moving at let's -- the going with have

And PCs It's you about with PC, about changing think saw about laptop. including with It's already gaming, think Apple at about It's devices. etcetera. cases connectivities. the multimedia. are you use of you least a cameras. of when that I workhorse streaming of streaming for when happening the XG, then about think Apple, It's the about

else everybody the think So of company an our when are going you the Windows the for going be is to transition view to architecture. best ARM very And in of is do There's industry, clear. positioned the big to we a to market that ecosystem. portion

Short the we reflected that have we also XX but the XX-bit, Microsoft not partnership able XX-bit. the in have the you support prepare with really of term, that's only time developments Windows I think ARM as acquisition Windows for the and for NUVIA. to years, the is ecosystem XX,

like things have You the coming Android to Windows. apps

and continue function. Our device We'll the Xcx XXX enterprises. And being X. We new just it's work about Gen the PC a doing. think now on tested going believe to going we to, there's OEM ARM-based to the talk on Qualcomm step every you're I they talk CES partners to room partner a laptop, our having in announced, what is be for side, that's that transition. that about Windows especially with large But

Operator

question-and-answer Mr. do call? That to the Amon, concludes anything session. you. add adjourning you today's have before Thank further

Cristiano Amon

Yes.

and is the First in I on for the at what we thank of across for joining Demand will virtually history. to of technology all, accelerating call I'm XXXX everyone like one would beginning every our of really the remain for sector, bring. excited opportunities largest today.

the we and in of mobile are have wireless approximately on-device execution with will AI times and our technology than vision addressable low-power that forefront more ensure capabilities In $XXX seven at in the one road to innovation. capabilities automotive decade. communications, from extends by billion market Our advanced comparable expanding we to -- and computing the in the IoT, map closing, next

to world Thank enable important, incredibly significant we continue and employees and these to I'm Most thank quickly achievements to transforms, industries early our we will made. like move to communities of would deliver that worldwide. and opportunities the As the proud address new advance. you. I XX,XXX technologies

Operator

and today's this concludes call. Ladies conference gentlemen,

You may disconnect. now

QUALCOMM (QCOM) 3 Feb 222022 Q1 Earnings call transcript