QUALCOMM Incorporated

Q4 2021 Earnings Conference Call


spk_0: ladies and gentlemen thank you for standing by welcome to the qualcomm fourth quarter and fiscal two thousand and twenty one earnings conference call at this time all participants are in a listen only mode later we will conduct a question and answer session if you would like to ask a question during this time press story than the number one on your telephone keypad to withdraw your question press star than the number two if you are using a speaker phone please pick up your hand that before pressing my number we've when the your question you one question and one follow up ah a reminder that corporate with being recorded november third two thousand twenty one but playback number for today's call is eight seven seven six zero six eight five three international callers without to zero one the quarter to seven four one five the playback worth of a number is one three seven to three seven to one i would now like turn the call overcome refill low paper doyen vice president of and better relations with their lopez little and we'd go ahead
spk_1: thank you and good afternoon everyone through call group prepared remarks or crush your mom on and because all in addition alex rodgers will join the question and answer session you can act reaffirms relief and is where presentation that accompanied with call on brush rulers and work for it in addition the called been web gruff on qualcomm dot com and a replay will be viewable on a website lear to do during the call to do we will use non gaap financial measures of different regulation g and you can find the would reconciliation to go up on the web for we will also make for looking statements including projections and estimate of future events business or industry trends or business or financial results actual events result could differ materially from those projected and are forward looking statements please refer to ftp from and queen or most recent pinky which countrymen form factors that could cause actual results to differ materially from the forward looking statements the not a common from clock qualcomm president and chief executive officer christian amon frank your maurizio and good afternoon everyone thanks for joining us today
spk_2: as the base of digital transformation of industries a seller rates in as devices become connected and more intelligent or broad portfolio of technologies and solutions is creating a significant long term group opportunity for us as you can see from our results the performance in or chips a business lead to record fiscal fourth quarter known get revenues of nine point three billion dollars in record non gaap earnings per share of two dollars and fifty five cents notably this is our fifth consecutive quarter of greater than a hundred percent year over year you be three growth in or chipset business we also demonstrated revenue diversification with combine or from and automotive and or your p fiscal twenty one revenues exceeding ten billion dollars an increase of sixty nine percent year over year going forward or chipset business represents the largest growth engine for us as virtually all devices at the edge adopt mobile technologies we have the relevant technologies required to continue to lead and mobile and the connected intelligent edge and as the edge games scale oh and connectivity and adopt own device artificial intelligence will well position to become a leader in a i processing let me know briefly highlight the strong moment and we continue to see an iota the across consumer as networking and industrial in consumer we're pleased that are x or platforms are powering over fifty commercial devices and gaining scale with the leading vr in a or ecosystems our early investments have established snapdragon xr is a device platform of choice for connecting physical and digital spaces in recent more could developments position us as one of the key enablers of the metaverse opportunity additionally the ongoing convergence of mobile and compute continues to drive demand for snapdragon power premium tablets to and ones and laptops we are pleased with a strong market value they some of or base personal computing in the industry transition to a new eso si architecture were more confident than ever in the connected computing opportunity our upcoming solutions by were both or new vs cp use and our collaboration with microsoft we also seen increase traction in consumer electronics are advanced technologies are powering category leaving devices such as the bella thorne bike was in thread as well as the astral amazon's recently announced household robot in edge that working we are leader in current and next generation high performance why five six and why five sixty access point solutions and we continue to see high demand for products driven by home in enterprise upgrade cycles we expect the strength to continue as productivity increasingly requires video call aberration as well as cloud processing and storage five g s wireless fiber is now a reality in gaming scale in the united states were rising recently announced five g home internet service availability and fifty seven markets including more than two million households covert on millimeter wave in addition t mobile is leveraging their five june network to target seven to eight million home broadband customers over the next five years we're seeing the man increase globally making five g s wireless fiber one of the fastest growing last mile broadband technologies in industrial we have expanded or qualcomm or your p services sweet to more than thirty verticals as an example in retail or solutions are powering digital signage payment and self checkout devices from companies like square and clover as well as solutions from honeywell panasonic zebra in
spk_1: others to enable new customer experiences help empower store associates and improve operational efficiency we also continue to lead the way on product innovation with new launches like the qualcomm flight or be five they would first five g ai drone platform
spk_2: in our front end we expanded our product portfolio with were recently announced or trouble or a future technology the support frequencies from two point seven gig urge the seven point two gigahertz this is the new industry benchmark for performance in this range water about technology also supports why bands you go reading five gigahertz the newly adopted six gigahertz banned for why five sixty and future wife high standards this creates a new growth factor for am from end as we attach or f solutions to i find our our front and portfolio combining a saw an ultra bought technologies is now best in class and six hundred megahertz the seven gigahertz in with the addition of millimeter wave we are the only or efron and provider with a comprehensive solution for all bands a similar expand beyond handsets were focus on extending or modem to antenna piano platform
spk_3: two automotive in a uti
spk_2: in outer motive were creating a leading horizontal an open platform will pour snapdragon digital chassis which includes or telematics digital cockpit court to quell service a deaf and autonomy solutions
spk_1: taking the same approach we used to make the smartphone the word largest computing and developer platform we're currently working with automakers into your ones to create a joint road map to build a multi multiplayer multi generation scale a book and upgradable platform for long term sustainable business
spk_2: the strength of our digital chafee strategy is reflected in both our results as well but strong design pipeline and it's creating a platform for innovation for outdoor we're also very excited about arrival were born causing snapdragon ride a their solutions will be complemented will arrive worse computer vision drive policy in driver a system assets enhancing our ability to deliver an open and competitive a that platform for automakers and your ones at scale
spk_1: oh
spk_2: in handsets were successfully executing on our strategy or premium fears that dragon solutions continue to gain traction with volumes in fiscal que for devices announced or shipped with our snapdragon prevent your products increased by twenty one percent year over year
spk_1: notably all leading five g android smartphones yeah by volume continue to power their flagship devices with snapdragon
spk_2: snapdragon continues to be the preferred choice for premium and high pure android smartphones in all regions as a result were benefiting from the changing oh yeah i'm landscape and android sam expansion lastly are licensing business achieve this goal twenty one revenues in excess of six point three billion dollars cute remains the most successful licensing business in the industry reflecting the strength of our innovation and solar technology the value of our extensive patent portfolio in our execution in securing long term agreements with your yams as well as over a hundred and fifth
spk_1: five the agreement to date
spk_2: as we have noted throughout the year we continue to see incredibly strong demand across all our technology as the current environment is a celebrating the scale of connectivity and processing at the edge we still expect material improvement store supply by the end of the calendar year and our second sourcing initiatives remain on track before turned to go over to a cash i'd like to highlight that we recently announced a go to achieve net zero global emissions for scopes one two and three by two thousand and forty we also look forward to enabling a more sustainable future with five g to it's impact on greenhouse gas emissions reduction energy and water use optimization green jobs creation and more
spk_4: i would now like to turn to call over to what cash
spk_2: thank you kershaw know and good afternoon everyone
spk_4: we are pleased to announce record for fiscal quarter results with non gaap revenues of nine point three billion dollars and non gaap pps of two dollars and fifty five them reflecting year over year growth of forty three percent and seventy six percent respectively what you studied this was another record quarter with revenues of seven point seven billion dollars anybody margin of thirty two percent both about the high and our guidance q bt of two point five billion dollars grew by one hundred and forty three percent worth of the year ago quarter on revenue growth of fifty six percent and twelve point of view be the margin expansion we also delivered record revenues in each of qc city revenue streams handset or up front and id an automotive ansa revenues or four point seven billion dollars increased fifty six percent year over year on strong demand across all major orleans
spk_2: our front and revenues of one point two billion dollars grew forty five percent year over year and included the benefit of bull enough demand in advance of soda and holiday launches
spk_5: id revenues were up sixty six percent year over year one point five billion dollars at digital transformation continues to drive higher demand across our diversified customer base automotive revenues of two hundred and seventy million dollars grew forty four percent year over year on the ramp of digital carpet launchers and continued strength and telematics q dl revenues of one point six billion dollars anybody margins of seventy two percent were in line with guidance these results reflect slightly lower than expected units offset by favorable mix
spk_4: lastly we delivered gap pps of two dollars and forty five cents forty seven cents about the high end of our guidance driven by record non gaap earnings and approximately five hundred million of games in our que esa investment portfolio know i would like to highlight some key achievements in fiscal twenty one
spk_6: we are exceeding all targets with that at our twenty nineteen analysts day
spk_4: which is a year earlier than forecast it
spk_5: we delivered year over year revenue growth of twenty six percent in queue deal and sixty four percent in two city and more than doubled non gaap pps to eight dollars and fifty four cents into city we had greater than fifty percent year over year growth in each of our revenue streams and he be the margins expanded from seventeen percent in full twenty two twenty nine percent and for good twenty one
spk_4: within handsets or android revenues for our snapdragon chipset were approximately forty percent higher than our primary competitor
spk_5: with our focus on the with a vocation rf front and automotive and i would be accounted for thirty eight percent of total tcp revenues
spk_4: lastly we return seventy four percent of our free cash flow the stockholders including three billion in evidence and three point four billion in stock report to this turning to our guidance for hanford units and the first for goldwater for calendar twenty twenty one we are narrowing the range for five g handsets to five hundred to five hundred and fifty million units
spk_5: we are now forecasting mid to high single digit growth in global treaty forty five g handsets relative to calendar twenty twenty for the fourth with a quarter therefore getting revenues of ten to ten point eight billion dollars and non gaap pps of two dollars and ninety cents to three dollar than ten them in city we expect revenues of eight point four to eight point nine billion dollars and he t margins of thirty two thirty four percent
spk_4: at the midpoint this implies year over year revenue growth of thirty two percent anybody dollar group of forty nine percent
spk_5: the sequential revenue growth is driven by handsets due to higher demand primarily for our snapdragon chipset in android devices following the record performance and the fourth quarter we expect non hands that revenues to remain in line sequentially
spk_4: consistent with our previous guidance we expect qtr revenues of one point six to one point eight billion dollars anybody margins of seventy four to seventy eight percent
spk_5: this forecast a film sequential unit growth in line with historical trends
spk_4: lastly we anticipate non gaap combined are be an austrian expensive to decrease two to three percent sequentially
spk_5: as a reminder operating expenses are typically higher in the second with cold water as it includes calendar year reset for so don't employed related costs looking forward fiscal twenty two will be another exciting for qualcomm with your over your fps growth expected to exceed twenty percent driven by strength across all qc city revenue streams
spk_7: in handsets good position to benefit from the ten billion sam expansion due to the changing oh yeah landscape
spk_5: a portion of the benefit is reflected in our fourth quarter guidance and we also expected to contribute to the rest off with good when you do before i finish my prepared remarks i would like to thank our employees for their leadership and contributions in making twenty twenty one successful finally we look forward to seeing you at our investor day on november sixteenth where we will provide additional detail about a good strategy
spk_0: thank you and are now to end the call back to my to thank you cause operator we're not ready for questions thank you the killer question press star than the number one can withdraw your question press start pill if you're using a speaker phone please pick up your handset before pressing my number
spk_8: our first question pancras careful with raymond james place to stay with your question yeah thank you good evening
spk_4: but my first question perhaps you could help us out with what was was different from your expectations heading into this quarter i know that the you are struggling with supply constraints like everyone else in the industry was it the supply chain on a better than you expected it was it wasn't a demand was it a combination of of
spk_9: yeah i growth that to the gosh it was really a combination of both are we were we had lots of strength and qc be really across all of our revenue streams
spk_8: with handsets ayodhya not up front and those are the three area that did really well
spk_2: the relative to expectations and we were able to work through that supply constraints to address the demanded came up said was really a combination of both
spk_5: the great and and maybe you could expand on your comments yeah we spoke about and i think of this writing ps growth expected to exceed twenty percent
spk_10: as you go into next year video can you can can you give us some some details i'm sure that's something that you're planning on hitting as you got the anal sex
spk_4: yeah absolutely i mean it third just to clarify what we what we guided in the non gaap pps growth of greater than twenty percent and the key driver for that is really across all qc the revenue stream so you're seeing the tramp exiting the year and that's those grant that kind of playing out bought in our fourth quarter guidance
spk_5: and also the full year
spk_0: the one thing either highlight as within handsets of we're really not strong position to benefit from the ten billion sam expansion we've previously discussed from the changing alien landscape and abortion of the benefit of reflected in our fourth quarter guidance and that's that's also contemplated in the greater than twenty percent dps growth we are suggesting
spk_11: given that we expect a handsets to go faster than non up and put good when you do but really across the board will have very strong growth rates and and and really fucked up to do well in the year and beyond thank you are next question if coming from the line of matt ran through with palin please proceed with your question yes thank you very much good afternoon guys like congrats on there though
spk_2: cristiano i wanted to dig a little bit with you into the guidance for that december corner i think you guys mentioned in the script that that that was primarily going to be driven by your android and increase supply side when to make sure that i got that right obviously that's a seasonally strong quarter for for cupertino but i just wanted to dig a little bit more into their dynamics that are driving the fourth quarter an android thank you
spk_12: no thanks meant for the question look i think what you started to see exactly
spk_11: the correlation is going to different directions you know you're correct is a seasonally strong the quarter for our up modem only ship and but the sick when show revenue growth is primarily driven by android handsets and demand for snapdragon mobile platforms in both across a preeminent
spk_13: clear and consistent why we said we see an incredible opportunity to grow a fast and and a market and enjoy this be primarily growth driver in our hansa business right now
spk_11: very clear thank you a cautious my follow up thirty three percent
spk_4: yeah margins in a december quarter
spk_5: obviously there were that was a settlement with apple and and some things change their but that number i think was thirteen percent two years ago so i gets pretty remarkable progress i wonder if you might talk a little bit more and maybe this is something for a couple weeks from now the annals day but on the put than takes and drivers of of the key city up margin going forward and oh where are we is is this a seasonal peak or this and a new trend thank you
spk_4: matt thanks for the question here we're very pleased by the operating margin performances well so maybe a point to a couple couple drivers but a but really we are planning to would rather than a lot more detail in a couple weeks i'll ask you to hold a hotel them
spk_9: if you feel gross margin performance in the september quarter that we just reported very strong gross margins and we are forecasting and similar range going into the december quarter
spk_0: and then era where your if you look at the fully are so abstract back from the seasonality
spk_14: we went from seventeen percent in fiscal twenty two twenty nine percent and fiscal twenty one
spk_15: and so we reveal obviously very comfortable with that number and and in a couple of weeks we'll talk about how they combination of revenue growth and gross margin percentage and already leverage will will take us are going forward
spk_14: thank you are next question comes to nine of the net category with jp morgan place that the with your question thank you i think that question is cause greater and greater top of your premium
spk_16: it's going to the to go to get of the
spk_2: color about how you think about adoption of blimey to out with the android customers and of there has been some invest conversation or out ointment around the primary customer i'm not lying or more widely eroding our me do with this year so that's why to get kind of what the pipeline rid of me to we have an hour and right cause we're talking about that i will follow i can make thanks for asking the question our position a millimeter wave remains and change in will remain and change it their there to i think i entrust your question the first one is continue to track exactly as expected when millimeter wave and united states is now commercially available in japan across all carriers docomo softbank pity the even a new carry rather than and we continue to be optimistic about the opportunity of millimeter wave becoming commercial overtime in china the first first milestone is the millimeter wave for the winter olympics early two thousand twenty two
spk_15: japan is movement for a millimeter wave
spk_14: and nothing has changed the carriers plans to continue to build the technology and they are a number commercial millimeter wave smartphones and your planned it's include the galaxy note the again gf twenty one and the galaxy food and sony and from our perspective just knowing what we know of wireless how the growth of for data is going in the spectrum efficiency millimeter wave is inevitable just a matter of time and it's just different markets will deploy a different speeds but that's how we get more spectrum in a position of male midway remains unchanged follow the arrival of you've got
spk_15: us to talk about how to think about opportunity with the rival or and oh how shitty thing what we have got that are looking for a full stack execution
spk_14: oh yeah that look for more of like on the hardware piece of that stack leveraging qualcomm from that aspect and that if you can provide any updates i think would have updated as the book
spk_2: right along with it partners but what anymore around the clothing as well as the price for qualcomm standalone for the right that's it yeah we're we're very excited about the the union acquisition and and arrive where technology as we said before the natural wonders that acid
spk_0: we were you know believe we're on track to get the ability to get all the the approvals and clothes on this transaction and more important as we had a business corporation in place with your you're right of the acquisition that remains and change and allow us to continue to progress towards evidence platform
spk_17: we get getting incredibly positive feedback from the market from the ability to provide to reopen horizontal our platform for a death in i highly encourage you to be it or new york analysts day we have a lot more details to provide about what we do in a that and autonomy
spk_4: thank you are next question is coming from the line of faith the raf going with bernstein research for people to a question
spk_17: i guy think you're taking my questions on for my first one i was curious some this given the current state of the handset market what kind of handset growth you have embedded in your your more than twenty percent vs forecast for twenty twenty two are you looking for recovery your is it all around content like were like how are we thinking about are you growth
spk_4: in the market to drive that yeah stay for the guidance that we gave there are no heroic assumptions on market growth we're we're assuming similar scale to this year and within that we feel comfortable that we have the opportunities in front of us to go
spk_5: but it's also still like midnight single digit
spk_4: that's right thank you i'm from i follow up on your and i know you've had supply issues i know their resolving by the end of the calendar year are you still under shipping on what you could ship if you had supply in is that supply users up to that have any impact on how we might think about typical seasonality to march quarter he asked if it's like gosh is this a we do have constraints really across the board and and you have to figure out how the demand would have played out of that with supply across the industry but we feel pretty comfortable that the overall supply picture is playing out exactly as we had planned a we saw the
spk_9: is coming early and we've been talking about it for the last couple call quarters and we put in place plans bought for
spk_4: dual swords thing for certain parts we have now announced three parts that dual swords that are available
spk_0: the and that also capacity expansions with our supplier that were previously been planned anyways
spk_18: come in toward the end of the are so that that's definitely something that we are very excited about on a question on the second quarter were obviously not guiding the quarter of this point but it's it's a reasonable assumption to think that as we launched our new android premium be chip in the in the fourth go first quarter of the calendar year that will offset some of the decline you would see in the handset market naturally wouldn't into city
spk_2: and then of course we also expect non hansard to grow from fourth quarter to second quarter
spk_4: thank you are next question come from the line of tally on a with bank of america please poker with your question pay the have two questions are just awesome together
spk_5: what is the what what are the trend in china meaning the headset market is weakening
spk_4: we heard it throughout the quarter and on the other hand there is a while we share loss and and your share game so i'm wondering if you can share with a kind of the trends within china nine and your outlook for the market
spk_5: in the second question is not related but it's the second question i'm getting from investors which is you always say that the when apple start using their motives the surface area apple is is big and there are other opportunities can you elaborate what are the other opportunities what are the maybe get a scenario what of the scenario that uk i still manage the transition of apple using their a load of thanks
spk_9: you're tall it's like our shall take the dig the first one on crush on and will address the second one
spk_5: so what we saw in the september quarter on the market was weakness in units in china and emerging markets are but developed markets while him remained very resilient so that that's really the jumping off point for the december quarter
spk_2: we forgetting normal seasonality on top of what we saw in september i'll say that a portion of the weakness was driven by supplying balances and so soda know yams and so that didn't back the demand to certain extent but that's one of the key factors we saw happening within the market though five g continues to be very strong so thing thing to trends in china first is the transition to five g e gonna die the variants month to month but very very strong and high seventies percent has already transition to five and so we are raising the guide guidance the midpoint of the guidance for five g to now five hundred and twenty five million units
spk_0: and then know within that we're also seeing higher beer of devices to or we will show me on are all of our customers are moving up the or and as they move up the or that creates an incremental opportunity for us so it's a pretty positive market grants for us
spk_19: okay so just can answer the second question so tell the second question were very focus right now on our contract with apple which focused on providing moline modem or for their products were very happy with their relationship but anything beyond our control with them is an upside to our model and as i continue to say what i said before we have a lot of technologies to have a large number of devices
spk_20: and they if there are opportunities will be very happy to engage with them
spk_9: and supply would just want to speculate at this point and we've been very clear that are sumption to in our model is just focus on our contract everything else is upside
spk_4: our next question as coming from a line across the moral torture bank please prohibit your question
spk_9: good thanks to let me a question for grabs on the strong results and guide the the cash or know it just wanted to talk a little bit about the the pairing of the handset in the are side of things i know you said that there is a little bit of a poland and your physical fourth quarter on the arab side of things but with the android market share games that you're talking about heading into the december order
spk_21: why the are outside not coming along with our ride and in is that preparing something that it's just the transition period and and as we look further out those are going to be more linked together
spk_2: rotted gosh
spk_19: a to be exactly where the right question did that we expect the to to move together in concert as i mentioned in my prepared remarks and that's why we highlighted it
spk_9: we did see some berlin from december quarter the september quarter within our front and and it was really were supply was available our customers chose to take it sooner than receiving the tips up and if you normalize for it the to would have moved together so we do we definitely see the growth in the android opportunity or the commander
spk_4: growth wacko for us within our front end as well
spk_5: like so that govern i get the they'll just to just have a crystal clear all of this growth opportunity there we seen and android discretion agreement to high is coming with rf i want to me that that statement clear thank you for that christian i get that might follow up a fight talk about qc t x handsets and acts are a front end it sounds like a gosh you said though the be relatively flat in december but then you thought it would actually grow again in march what's going on in those markets and then i get the higher level question has given the supply constraints there's a big debate going on in broad base
spk_0: i mean between investors worried about the increase selectivity from customers change and behaviors are think some digestion period here why that flowing and then why is it really accelerating
spk_22: yes who have a view of you saw we tremendously strong results both and or two and i would be and record results and both in the fourth fiscal cold water you're right going going into the first quarter we are forecasting in line sequentially and one of the key factors there is still we are supply constraints and we are making so dumb decisions given the strong the handset market in that quarter to allocate supply a little differently go based on profitability
spk_5: but but really when you think about the draw demand from the customer continues to be very strong and so we're confident that when you look at second for to cook order or look at risk of twenty one going to put good twenty two
spk_4: both those businesses will grow in a very strong question our next question is coming from a line of joe more with morgan stanley please proceed with your question
spk_23: great thank you i wonder if you could just talk about the overall supply chain and smartphone and are you kidding
spk_0: bottlenecks some your customers were there are unable to procure parts that are from qualcomm that might lead him into a build up of qualcomm parts it
spk_24: seems like overall the handset so through numbers are a little weaker because of those constraints but it didn't seem like the supply chain has changed at all can you just described it in iraq sure sure job so we're definitely seeing some mismatch of barred from the short don't want some of our customers but you should think of though there's really timing issues the other thing to keep in mind that cushion outlined earlier in the call that we're focusing really on the premium and hide your units and so when our customers have sublime mismatch the actually
spk_2: end up supplying the premium and idea devices so are our chips and our devices are still being used and it's not something that's a big factor for us in the short term a great big it much
spk_25: thank you are next question come from rod holocaust in fact please proceed with your question
spk_2: yeah i think the question i wanted to come back to the idea of supply or demand in the queue one quarter i'd heard earlier i did someone mention that they were at being that that supply would be
spk_24: meaning demand that it is the did what i just want to check that with you that it going to function or do you think that we the supply continuing to rise to meet demand on into that that go to and the that i have a up a pirate discussion look if you could put remember we had said if i believe to earnings calls ago that we had put in a we act early you put a lot of things in place modi sourcing pass expansions in we said we expect to see material improvement in our supply towards the end of the calendar year that's reflect that into que one guide you know her ability of supply we
spk_17: we continue to have in our pockets of from a areas that we would ship more if we had more but we see a lot of improvements were you know at least three announced products of motif sourcing been shipped and the we've been you know executing on on that the you know increase
spk_26: supply and
spk_2: different companies are going to have different outlooks we we look at the first half of two thousand and twenty two was to have some shortage but as we get to the second part of the year think in general supply and demand are going to be a line yeah i just i get my my question was detained at the idea that the seemed like a good continue to be a little bit of a tailwind for you as you move in the beginning of next year and it's not just magically read off your the into this year my my follow up his read regarding the android opportunity i wonder if you go to comment on content their vs
spk_0: the other big you know big high and handset maker you apply we we calculated that it'll increase in content but i'm just curious you agree with that with you know if you fell behind a android phone in january that phone going to have materially more content for you than a you know and other type of oh my
spk_27: absolutely look we are very pleased with the strength of our snapdragon eight hundred series is no trillion eight hundred series became synonymous with premium android in a flagship smartphones there's a lot more silicon comp and besides
spk_2: the or efron and of attach the modem you know there's gp you their cp you there's all the multimedia and it's a lot more richer platform than just selling a modem in it multiple times in terms of revenue and or in his contribution and when we look of the sam available to us when we look at the consolidation of a snapdragon eight hundred been be shipped set for every flagship
spk_4: that's no surprise that we actually grow faster in the android segment
spk_9: thank you are next question as comic malign of harsh kumar with piper sandler point perfect with your question
spk_27: yeah hey guys first of all colors relations on tremendous execution and diversification i had a question for show you talk a lot about android and how positive you on that i know you were supposed to get additional supply in the december quarter you seem is benefiting from units are you are you benefiting from units primarily are you also going back and taking share that that you were expecting take from your competitors look there's plenty of opportunity with the changing landscape or for growth between us and our competitors i think what's important to highlight is the qualcomm have been concentrated in pay premium in the high this very high demand for premium and hi
spk_9: snapdragon mobile platforms both the seven hundred eight hundred and a it is a share game of snapdragon in android premium and the we're very happy with the opportunity to capture actually the higher value share of the market and then maybe urged to add to that others just join our attention to product announcements that we had a couple weeks ago are very announced a whole new set off
spk_28: the five deep products across crossed years
spk_0: great guy and from i follow up i wanted to follow up question was asked about the much quieter you talked about some benefit going from me a premium hardships that you'll be launching in the in be much time frames she's only we now apple for one talked about leaving was six billion plus or the revenues behind on the table
spk_29: do you think you might get a benefit from all the other hand said williams and on the love new behind on the table along with the premium my you think it's just again your your own chipsets that are getting better fab a benefit from launch a new chipsets will do what i said about the the march quarter was really you have a seasonal decline and bamford market but given the launch of our new to upset and and really all the other tips that launches we've done over the last month the feel like we will be in a very strong position to expand expand our unit within the android market and then the second thing i said is non hanford growth we expect non handsets all all three to grow
spk_9: the quarter as well
spk_4: thank you are final question is coming from a line of timothy are carry with you bf pleased you with your question
spk_9: that's what am i have to question the first a coach was on the i'm or of business i think you said at the i will say that you were targeting you know more than twenty percent sure of an eighteen billion dollar and next year but you know i'm analyzing to you know almost five billion so either the market a lot bigger or your shares a lot higher so do you just comment on that and then secondly i had a question on the contract with the be customer can you just level said us
spk_2: crusher you just
spk_0: alluded to it so can you level said as i think it goes through two thousand twenty four but can you just help us on the timing of that thank you
spk_2: put them on the on your first question on the map three point six billion is right and grow weary reported result and four four point one billion i think so we're we've definitely exceeded the dog and we'd set and in in a question that earlier in the conversation know we're very confident that we have a several more vectors of growth left in the out of business not just with handsets but also as hand of five gigs bands and to telematics and id and then also within why fly so yeah added some ways to go and will will definitely plan to address that and enlisted in a couple weeks item description of the only thing we can disclose his where would disclose before it is a long term agreement and it's a multiyear agreement we unfortunately cannot say anything more than done
spk_1: thank you that concludes today's question and answer session i'm on the have anything further add before during the call
spk_0: thanks everyone for joining us on the call today we are the intersection of key trends there are celebrating edge connectivity efficient processing and own device artificial intelligence this is driving demand for industry leading road map of relevant technologies creating a significant op

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