zsxq45544852255854448_812458511248242_高通20260430

高通2026财年第二季度财报电话会议开场，营收106亿美元，非GAAP每股收益2.65美元。QCT营收91亿美元，汽车业务创纪录，物联网增长。CEO强调AI工作流正改变边缘设备用户体验，重塑公司平台路线图。

Please, and gentlemen, thank you for standing by. Welcome to the Qualcomm second quarter of fiscal 2026 earnings happen, Carl. If this time of distance you’re in the snowy mood. Later, we’ll conduct a question and answer session. If you’d like to ask a question during this time, press star the number one on your telephone keypad. To a story, a question, press star the number two. If you’re using a speaker phone, please pick up your hands at the core press and the numbers. Please, and your questions to one question and one follow-up. As your monitor, the conference is being recorded April 29, 2021. Playback number for state call is 877, 660, 6853. International callers, please dial 201, 612, 74, 15. Playback reservation number is 137, 5951. How would now let’s turn the call over to Greg Simpson, senior vice president of the press relations? Mr. Simpson? Please go ahead. Thank you, and good afternoon, everyone. Today’s call will include prepare remarks by Chrisiano Amon and Akash Bukwala. In addition, Alex Rogers will join the question and answer session. You can access our earnings release and a slide presentation that accompany this call on our investor relations website. In addition, this call is being webcast on qualcomm.com and a replay will be available on our website later today. During the call today, we will use non-gap financial measures as defined in regulation G and you can find the related reconciliation to gap on our website. We will also make forward working statements including projections, and estimates of future events, business or industry trends, or business or financial results. Actual events or results could differ materially from those projected in our forward-looking statements. Please refer to our SEC filings, including our most recent NQ, which contain important factors that could cause asia results to differ materially from the forward-looking statements. And as you comments from Qualcomm’s president and chief executive officer, Chrisiano Amon. Thank you, Brett, and good afternoon, everyone. Thanks for joining us today. In fiscal Q2, we delivered revenues of $10.6 billion in non-gap earnings per share of $2.65 cents with EPS coming in at the high end of our guidance. QCT revenues were $9.1 billion with another quarter of record automotive revenues as well as growth in IOT. Licensing business revenues were $1.4 billion. Before I share key highlights from the business, I would like to provide some perspective on Qualcomm’s current customer design cycles and the opportunities ahead. We are in a period of profound change, and he may not yet seem obvious to the financial community. The emergence of a gigantic AI workflow to a open clock as an early example are fundamentally changing user experiences across connected edge devices and reshaping our roadmap in every platform we develop. For agents to work efficiently, they must run continuously in the background, few sensor data in the context, or can straight move to step past reliably and deliver strong security. Today’s install-based devices were not built for the new capabilities and he represented a significant upgrade opportunity and expansion of our dressable market in the coming years. Agent orchestration is predominantly CPU bound, and Qualcomm has the words best performing CPU across smartphones, PCs, auto, and soon the data center. Qualcomm’s unparalleled connectivity solutions and power efficient NPU for local models will also be T-assets to delivering a gigantic AI experiences. No others have my conductor company matches the graph and scale of our technology and product portfolio, which power devices spanning really wants to kill a watts, from smart wearables to data centers. As a result, we are seeing a step-function increase in strategic customer engagement and is changing how we think about the broad AI opportunity as well as the speed of our diversification efforts. Beginning with automotive, in Q2, we exceeded $5 billion in annualized revenues for the first time, and we expect to exit fiscal 26 at a run rate above $6 billion. This growth has driven by our fourth generation Snapdragon Digital Chasse platform, which comprises connectivity, telematics, input payment, as well as advanced driver assistance and automated driving. Notably, we have now enabled more than 1 million cars operating A-dash an autonomy on our Snapdragon ride processors. By the end of the fiscal year, we will begin commercial shipments of our fifth generation Snapdragon Digital Chasse platform. This represents the largest generation to generation, constant increase in Qualcomm’s history, delivering 3 times higher CPU throughput, a 3-fold increase in GPU capability and 12 times higher MPU performance while you’re supporting in vehicle agents and processing for level 3 and level 4 autonomous driving. Looking ahead, the fiscal 27, we expect continuous share gains and increase content particularly in A-dash, where please are the performance of our automated driving stack of B-dash and we’re seeing broad customer engagement from other leading automakers. Our recent announcement with Bosh and Wave are good examples of what’s to come as we build on our proven platforms and self-driving stack in scale A-dash. In IoT, agentic workloads and GAI are driving major product renewal design cycles. Overall, our pipeline is healthy and there is clear momentum for Qualcomm’s solutions. In personal AI, we expect a significant increase in the choice of newest more glassers starting in the second half of the year. We believe this launches combine with a rapid progress in the agentic AI will catalyze an inflation point in customer demand across this category. Our 2022 Snapdragon X2 PC platforms are currently in production and our world-class Orion CPU unlocks powerful hours on agentic experiences making it a true competitive differentiator. Agentic orchestrators such as OpenClaw, ClawDestop, ClawD Code, OpenAI CodeX desktop, perplexity computer, CrewAI, Air Miss Agent, LandCrafts, and Humane1 running on Snapdragon X2 are early proof points. A recent PC mag review of the ASUS Zenbook A16, no stick Qualcomm is now a serious challenger in the PC space and states quote, the generational leap from the original Snapdragon X3 to the X2 series is particularly striking. Qualcomm hasn’t just caught up to the industry, in some cases, is now helping to set the base on quote. In addition, our Exagon NPU is the world’s fastest for laptops delivering up to 85 tops, together with our industry leading CPU, which has the best on-device token generation rates, Snapdragon X2 delivers the full agent experience in two end and outperforms Intel’s Pinter Lake by nearly 30%. In physical and industrial AI, our new Dragon Wing IQ10 platform has generated substantial customer interest since our launch SCES. This is a significant upgrade compared to IC9, feature an NPU with up to 700 tops of own device AI performance, an 18 core Orion CPU over 20 camera sensors in an integrated safety island. Building on our design wing was figure AI, we announced an exciting multi-year agreement with Nura, reinforcing our confidence that we can become a significant player in the broad robotics market. Also during the quarter, we introduced ventunoQ at embedded world. This is the second Arduino platform build on Qualcomm silicon and review it as a world-class prototyping engine for robotics and industrial AI developers as we expand our ecosystem across two verticals. ventunoQ is purpose-built to bring AI into the physical world enabling fully autonomous AI agents in a wide range of AI applications including voice assistance and vision systems. Several new industrial AI products are also moving from design wing to deployment across retail, utilities, oil and gas, agriculture and other verticals. In data center, the upper weight integration is off to a great start and we’re pursuing multiple opportunities with large hyperscalers, cloud service providers, sub- and AI projects and other global partners. Building on that momentum were also entering the custom silicon space beginning our ramp with a leading hyperscaler and we expect initial shipments into December quarter. In addition, development of our leading data center CPU and high-performance AI inference accelerators is progressing well. Will look forward to sharing more details in customer winds at investor day in June. Regarding handsets, I would like to underscore two key points. First, the quarter played out as we expected. Seltru held up in our chip business materially under ship consumer demand. We believe our China Android revenue is bottoming out in fiscal Q3 and a cash will provide more specifics in his financial update. Second, we think agentic smart phones will soon begin to influence the premium tier and we expect this team will only get stronger into fiscal 27. With examples, like the by-dance Dau-Bau power, agentic AI phone from Ziti Nubia. Xiaomi’s recent announcement of a mech law agent framework and other agentic assistance now in development across the Android ecosystem, we have a clear line aside into how the AI upgrade cycle will unfold and this is going to be an important tailwind for premium demand over time. Next, I want to highlight a major strategic initiative in long-term growth driver for Qualcomm. 6G, the next generation of wireless. Designed for the H of AI will believe 6G will present one of the most significant transitions for the wireless industry. From a connectivity perspective, 6G will enable new classes of mobile and personal devices such as smart glasses within his opening capabilities to support agentic use cases like C, what I see. Beyond connectivity, 6G will be an AI new dev network where AI reasoning, learning, and autonomous action are core functions. It is intended to act as distributed intelligent infrastructure to integrate communication in wide area real-time sensing. With this new capabilities, the network becomes critical infrastructure and provides the telecom industry and opportunity to develop completely new business and economic models. You will make possible new AI enable services ranging from context relevant data, data insights and analytics low altitude aerial, terrestrial, and autonomous traffic management, drone detection and tracking and 3D mapping with telemetry to build dynamic digital twins at scale. Qualcomm’s leadership in connectivity, AI processing, and high-performance low-power computing position us to be one of the key architects in beneficiaries of the 6G transition. In addition to the development of foundational technologies and standards, we’re building into end solutions for devices and the network from agentic models and compute platforms that power phones, PC, intelligent wearables and cars all the way to the network including power-efficient next-generation radio units wide area network sensing platforms and high-performance compute in AI accelerators for the ran network edge core and data center. To help shape and accelerate the 6G roadmap, at MWC, we launch a 60 company coalition, spanning carriers, cloud infrastructure, AI-needed corners and auto-OEMs. The engagement and feedback on our 6G vision and plans from our partners, customers and governments across the globe has been very positive and we look forward to working across the industry to deliver on this generational opportunity. Before our turn to call over to Akash, I want to note that we will provide a brother update at our investor day to include our data center plans in our progress in other areas including advanced robotics, next-generation ADAS, industrial-edge AI, personal AI devices, and 6G. We hope you can join us as we will be highlighting meaningful new avenues of growth to support our long-term diversification story. I will now turn calls to Akash. Thank you, Kishanel and good afternoon, everyone. Let me begin with our results for the second fiscal quarter. We deliver revenues of $10.6 billion and non-gap EPS of $2.65 with EPS of the high-end of our guidance. QTL revenues of $1.4 billion and EBT margin of 72% given as the high-end of our guidance driven by favorable mix with global handsets units approximately flat on a year-of-year basis. QCT revenues of $9.1 billion and EBT margin of 27% were in line with our expectations. QCT handset revenues of $6 billion came in as anticipated, as OEMs remained cautious on handset bills due to the impact of challenging memory industry dynamics. QCT IoT revenues of $1.7 billion were up 9% on a year-of-year basis, driven by growth across consumer and industrial profits. In QCT automotive, we delivered another record quarter with revenues of $1.3 billion, representing 38% year-over-year growth, driven by accelerating demand and increasing content per vehicle due to the transition of new digital cockpit and AX launches to our fourth generation tipsets. On a combined basis, QCT automotive and EBT revenues grew 20% year-over-year, underscoring the continued diversification of our business consistent with our long-term revenue targets. We also returned $7 billion to stockholders during the quarter, including $2.8 billion in sharing purchases and $945 million in dividends, reflecting acceleration of our capital return program. Lastly, we released a previously recorded tax valuation allowance, resulting in a 5.7 billion non-cash gap tax benefit in the second fiscal quarter. This benefit is excluded from non-gap results. This reversal reflects new guidance on corporate alternative minimum tax, issued in February by Treasury and IRS, permitting tax fears to disrupt previously capitalized domestic R&D expenses. Before turning to guidance, I’d like to provide an update on the continued impact of memory industry dynamics on our business. Last quarter, we highlighted that the increasing demand for memory in AI data centers was driving uncertainty in memory supply and price increases to hands at OEMs, and as a result, the hands at OEMs, particularly in China, were taking a cautious approach by reducing build plans and drawing down channel inventory. These dynamics played out of expected in the second fiscal quarter and are also reflected in our third quarter guidance. As a result, in both quarters, our China, U.C., Android shipments are meaningfully below the scale of N consumer hands at demand. We now estimate that U.C., hands at revenues from Chinese customers will reach a bottom in the third quarter and return to sequential growth in the following quarter. Now turning to guidance, in the third fiscal quarter, we are forecasting revenues of $9.2 to $10 billion and non-gap APS of $2.10 million to $2.30 In QTL, we estimate revenues of $1.15 to $1.35 billion, and EVT margins of $67 to 71%. With sequential decline, primarily due to the operating assumption of weaker, low-tier hands at units. In QT, we expect revenues of $7.9 to $8.5 billion, and EVT margins of $25 to $27%. We are forecasting QCT hands at revenues to be approximately $4.9 billion, as a result of the impact of the industry-wide memory dynamics in the South line. We anticipate QCT IoT revenues to grow by high-single digits, which is the year-go period, driven by industrial and consumer products. In QCT Automotive, following another record quarter, we expect Euroware revenue growth to further accelerate to approximately 50% in the third fiscal quarter. Lastly, we forecast non-gap operating expenses to be approximately $2.6 billion in the quarter. In closing, while our near-term revenues are impacted by memory in this piece cyclical dynamics, we’re confident in the underlying fundamentals around Snapdragon product leadership and content growth opportunities, including the adoption of a gigantic AI technologies. We continue to execute on our secular growth opportunities in automotive and community and remain confident in achieving our long-term revenue targets. In addition, we’re very excited about the progress in our data center products and customer traction. We now expect initial shiftments for a custom silicon engagement at a leading hyper-scaler later this calendar year. We look forward to providing an update on our growth initiatives including opportunities in data center and physically AI at our investor day on June 24th. This concludes our preferred remarks back to you, Brett. Thank you, Akash. All clear, we are now ready for questions. Thank you. To Q a question press star then number one. The third question press star then number two. If you’re using a speaker phone, please think of your handset before pressing the numbers. One more on please for the first question. Our first question comes in the line of Joshua Bucklter with TD Cowan. Hey guys, thank you for taking my question. Obviously not sure you’re going to be able to front run the AI day. You’re going to you plan to host in June, but any details are able to share on our context on what the custom silicon engagement, what the scope is, what the magnitude is, is it some CPU, is it an accelerator, is it a networking shift, but just any help you can give us beyond the press release and prepare remarks. I think would be helpful as well as for investors. Certainly want to begin today. Thank you. Josh, this question, I think I have a question. Look, I can’t provide a lot of details. As you said, we don’t want to front run. I think that June 24, but here’s a couple of things I can tell you which is alongside what we said in the script. I think we have spent that time. I think building assets in, you know, we’re building our CPU, we have a accelerator, we have a different solution for memory in the accelerator. We have added a lot of capabilities for custom Asik with the acquisition of alpha wave and connectivity. We have been pursuing custom Asik. We talk about having engagement with a number of companies and pleased with the engagement several quarters ago. And I think giving the capabilities that we’re developing and what’s happening in the market, that’s accelerating. So we’re very excited. The only thing I can tell is it is a large hyperstainer. And we’re really thinking about, you know, a much generation engagement, but I think that’s what we can say at this point. Okay, I will say, June 25, for I follow up, can you maybe walk through your wire confidence that, as you would fiscal third quarter that you were referring to with the third quarter, but wire confidence fiscal third quarter can be the bottom for Android, sales, Android, QCT, sales into China. Yes, typically, you know, September quarter is usually a typically downseasonal quarter. And just give it how low visibility is right now overall in the handset market. I’d be curious just what inputs you’re seeing that gives you the confidence is going to bottom in the June quarter. Thank you. Sure, Josh. It’s like us. So if you think about the back to QCP from Chinese and Satoya, as a result of the memory dynamics, it’s really two parts. The first part is the scale of the handset market. And there we’ve seen some small decline in it, especially in the mid-load years. But by far, the larger impact have been the OEMs making a decision to slow down their bills and draw down on channel inventory. So both of these present there are now June quarter guidance. And so what we’re end up doing in both quarters is really significantly undershipping the end consumer demand for answers as a result of the channel inventory drawdown factor. So as we look forward, we feel confident that the third quarter is now the bottom. And so as we go forward, that revenue is going to be much closer to the scale of factor continuing into our forecast. And Josh, this Christian, is just an add one thing, because there’s not the way to look into this. As you know, because of our licensing business, we do have visibility. Oh, what happens in the market? So we know so true. We know how the so-to-market is behaving even when increased price on the handsets. So we give us a real good idea on activations and customer demand versus what we’re shipping. So that dynamic outline by Akash is kind of very weird to watch that Q3 becomes the bottom. How is that question? Customer line is to make strategy which AP Morgan. Please a few other questions. Right, thank you. Thanks for taking any questions. Christian, maybe just going back to the data center of the community. And just trying to think about, if you can sort of help us think about the competitive landscape here. I mean, you’ve had, which is the IP provider now announced they want to vertically integrate and make trips. You had Nvidia announced that they were going to focus on the influencing market as well. How are you thinking more of the competitive dynamics where they are rated, maybe three months ago or six months ago, that you’re now sort of going and trying to really go to these wins on. And I have a quick follow-up after that. Thank you. Great, great questions. I’ll give it our perspective. And I think we have now to think more clarity than we ever have about where kind of we are in the AI space. So a little bit of maybe at a very high level. In the beginning, it was all about training. It was all about creation of AI. A lot of GPU, very GPU centered deployment. In first part of the game scale, and then the conversation changed to, I’m going to use my GPU from training on the cluster that I built. And when I’m not training, I’m going to use that for inference. As inference first of games scale, we started to see dedicated solutions. The data sensor becomes more disaggregated. You have separate computing solutions, some for computer bounds, some for memory bound. And now we’re entering the, I’ll say, the next phase, which how AI is really going from infront generating tokens. How do you generate demand for tokens, which all those agentic experience and those orchestrators, they run into a lot of the devices. So when you look at that landscape and you look at our IP in the places that we can be very differentiated, I will start by our CPU. I think when you think about agents, CPU becomes very important. And I will argue, we were one of the companies that have a pretty good CPU asset. We proven that CPU performance or if leading performance on the market that we are right now, such as we’ll provide details on investor days, dedicated CPU for agentic experiences in the data center. We’re going to show the metrics, we’re going to show how performance people will be able to compare as you know, we have an architecture license and we have a very, very high performance CPU. So that’s one of the assets. The other asset is how you think about this scale, also my conductor company, like welcome. We’re not small. And the ability to combine the IP with the ability to do custom silicon, make sure that yield, make sure is delivered with quality and combine a lot of the connectivity IP, which I believe out of the way, because it was a licensing IP company has a leading IP that more devices to better your IP becomes. The number three is how we think about the accelerator. You’re going to need, you’re going to need high compute density, low TCO, and we think that we have something unique, which is focused on a cluster that is disaggregating for very specific, you know, function, especially like the code. I think the activity you’ve seen with companies like Grok and Cerebrus just proof that you’ll have opportunities for dedicated in for the accelerator. And the last point is I will not discount the position that we have on the edge. If you actually track what’s happening with OpenClaw in all of the different desktop and core work solutions, you you rely a lot on on a high performance CPU device, which is also causing enough great cycle for us. So we look at this whole landscape and that’s how we feel so good about the agentic transition of AI, what it means to Qualcomm, and hopefully on June 24, we’ll show the details on the roadmap, and if you have to be able to see where we stand, and the police reserve a seat. Yeah, no, please have the power to talking about that more of the industry. Maybe for my follow up, just going back to the hands of business, can you just remind us of the multi or agreement in work that you have with your primary premium smartphone customers, Samsung? You didn’t have some sort of changes in the market in the share with them this year. I think there’s some more indications for those set-down and share, more use of the in-house, to the sort of next year, can you just remind us of how you’re thinking about that engagement long-term and what does the multi or agreement sort of capture at this point? No, I’m absolutely, I love answering this question. So this is a very, very stable. I think a relationship with Qualcomm. I want to remind you all that we have reset the framework of this relationship. Historically, we always had a business with Samsung that was in the 50% share between us and their own in-house that has changed to greater than 70% as you know, and that has been the framework. And sometimes we get more than that, but we plan our business in greater than 70% share, which is exactly what we have said. You should expect that that is the framework of this year, and that is also the framework for next year. I would say that that’s probably one of the most stable relationship that we have, and we have visibility of what that entails. And we feel good about the position on the step and I’ll argue, as I think given what’s happened with agents, we have an opportunity to actually have a positive bias on this year. Our next question is from the line of Chris K. So with will research, please receive two questions. Yes, I, good evening. I guess the first question is if just returning to the data center briefly and to clarify what you mentioned in terms of the Scholar engagement for the December quarter, is that an engagement before an accelerator or a CPU? I understand your targeting both it sounds like, but what’s the particular engagement for December? This particular engagement, which we’re going to have shipments in December, is a custom product we’re working with on hyperskater. Okay. So no, no other specific path path. Okay. Just with regard to QTL, and it looks like that’s modestly down and likely due to what you’ve been talking about with regard to what’s going on in the handset market, what’s the right way to think about the QTL business as we go forward into the second half of the year? Do you think that, you know, we kind of maintain these levels and adjust for seasonalities, you get to the end of the year, or do you expect the impact on QTL to be more significant at your own second half? Yeah, Chris, that’s a gosh. So as you saw in our results for the second quarter, year over your handset units were flat for the global global units, and this was really kind of impacting our guidance as well, our actuals as well. And we look at third quarter, what we’re guiding is some weakness in the mid-Loteers in the market. I mean, this is obviously something that we are projecting forward, and we’re going to drag closely, but what we’re seeing is the premium idea of the market is continuing to hold and weakness in the lower tiers. And that’s what’s reflected in our guidance that’s some reasonable way of thinking about the market going forward as well. The next questions, written in the minus case, you’re asking it with first-team research. Let’s see a third question. Hi, guys, I’m Frances, taking my questions. So it’s trying to handset bottoming Q3 and then they’re growing Q4. That’s the temperate. So the temperate one I think is when we’re supposed to get the Apple step down, which may be an awesome question. How are you thinking about handset seasonality in the September quarter, given those kind of competing dynamics? How should we be thinking about that? Yes, it’s Casey Prakash. You’re right. I think in terms of handset revenues for QCT, from Chinese OEMs, we do expect that the June quarter is the bottom, and you will see sequential growth from there. And Apple, you’re right as well, that typically it’s a growth quarter for Apple product revenue, and we do not see that at this point given given they share assumption chains. So those are the two factors you would use to forecast the September quarter. I mean, I mean, do you think he’s in handset growth? He’s quite lean September or not, given those two factors. He’s been not specifically guiding it at that point at this point, but I think those two factors would be, would be the important to the forecast. Okay, and for my follow-ups, he talked about like a genetic devices and a genetic carcums like driving a shifts, and since I guess in the 27, do you think the memory issues are going to be done? But they’re like, how much memory doesn’t the genetic smart phone need? And is that something that’s going to continue to be a, when do you think on this as we go into 2027? How do we think of the broader dynamics that our memory is going forward? Thank you for your question, Casey. Look, it’s a little, it’s a little early to talk about 27. I think one thing to see is I think the pace of change of AI is getting scale. When I think about the framework that I talk about before, which you go from the inference to now, you’ll know how you generate demands for tokens with a lot of agents. And I think what we see is two things. One is the devices, the devices are changing the requirements and the design and the players. We see interesting associations now starting to form between smart phones and AI companies. We started to see some very interesting dynamics there with the changing the nature of designs. We see designs moving towards products. They have much more capable CPU to run those type of products. And there’s a lot of noise in the memory environment right now. I wish I could make a prediction on 27 is a little early. But we see a combination of the same companies that want a lot of demand for data sensors. Also getting involved with some of the devices at the edge as well. And we see new memory players coming and building capacity. So we’re going to have to monitor the situation and see what happens in 27. The next question is from the line of Timothy and Kerry with UBS. Please just see it through questions. Thanks a lot. I want to ask also about this custom that is going to ship in this fourth quarter of this year. I know you brought a human from the Alpha Way that seems a little fast to get something to market that includes URIP, about the end of this year given cycle times. So I think it has some shiplet to that for Nades and Custom DSP stuff. Is that the sort of thing you’re talking about? Or is this truly something that includes a big portion of your IT that you’ve been able to turn around since the field closed? Look, I think there are two answers. So we have, I’m pretty positive for the past several quarters. We’ll be talking about engaging with customers into data centers. So I think when we start engaging and talking about some of the welcome capabilities is probably I think given before the acquisition of Alpha Way, I think the acquisition of a wave increase our execution capabilities in the portfolio of IP. I think you should expect that we’re going to have longer multi-generation agreement with those companies that brings a lot of welcome capabilities to the table. I wish I could provide more details, but like I said, I don’t want to front run what we’re going to do on 224. But I think we will provide a detail of everything we’re doing, our customers win in our roadmap and our IP. Thanks a lot. And then I guess this is a follow-up. Is the assumption still the same that like around your share and Apple, I know there’s some signs that there’s going to be a little more aggressive displacement is the assumption still that it’s going to be 20% for the new launch. Yeah, no change to our assumption there. We’ve said 20% of the 20% share of the phones that the launch in fall this year and no product relationship beyond that. And this is this assumption has been consistent for the last couple years. In terms of Apple product revenue for fiscal 27, we’ve seen cell-fied models in the range of a little over $2 billion in terms of QCT product revenue in the year and we think that’s a reasonable praise to model the business. For that question, sir, if in the light of Joe Moore, with Morgan Stanley, please see his question here. Yeah, thank you. You alluded to the weakness being more in the medium tier and the premium tier is things stronger. There’s definitely you can see where it’s sort of taking limited memory allocation and that sort of drives this sort of limit that that puts in the heart here. Just what are you seeing in terms of what that’s doing here, thanks for forward. Yeah, I think the actions from the OEMs are obviously very logical. If you had to choose between which devices you put your memory allocation to, you would pick the premium and the high tier that’s where the profitability sets and that’s what you’re seeing happen in the market. Okay, and thank you. And you talked about 60 and 29 and is that what? What is that time frame represent? Is that sort of introduction technology? Is there a anything you can tell us about when 60 starts to become relevant? Yes, and thank you for the question. The reason I brought it up is because 60 is going to feel I think very different than the other geez for Qualcomm. I also believe that 60 creates some very interesting, I think that’s something AI and data center opportunities. I think for Qualcomm as well. You should be thinking about our timeline and we’ve been consistent with it. We will have, you know, product type base, I think demonstrations in 2008. Luckily, we’re going to have first silicon in 28 and we want early launches in 2021 and then we expect that to get scaled by 2030. Thank you. All right, next question. This is from the live of Ross. You are with us, thank you. Please do your questions. I just think, sure, let me ask the question. I want to go back to the hands that side. And if you could just level set us to whether it’s the second quarter of this will third quarter. What percentage of hands that is China? And you mentioned that a lot of the dynamics is how far you’re undershipping versus true demand. Are you believing that true demand at whether China or elsewhere is truly weakening still or is that five-day equation stabilizing despite the memory factors? Here Ross, when you think about the total handset market, and this is more of a QTL comment, right? If that’s where we’re seeing that the there’s a slight decline in mid-Loteers but the overall scale of the handset market has not changed much at least in the Marks quarter and we’re going to obviously closely monitor that going forward. In terms of QCT shipments to Chinese customers, it’s a factor as I said earlier of two things. It’s not just the scale of the handset market but the OEM decision to draw down on channel inventory. And so my comments earlier were about that draw down on channel inventory will end soon and that’s us calling the bottom on the quarter and then really our shipments will reconcile to the size of the handset market. Okay, and I guess so my far-right question is if the gears to the automotive side of things, you mentioned about the aid-as side starting to ramp and going 50% this year or these next quarter to doing very, very well, as you go for more of a cockpit business to the aid-as next increasing, how does that change the revenue trajectory and perhaps the gross margin trajectory in your automotive business? Yes, so hi, this question. I think what you see is it celebrates revenue dramatically because it’s a lot more silicon content. If you, and that is true actually on both sides. I think what you saw is when we went from generation three to generation four and digital cockpit, we I think we keep mentioning that car is really becoming a computing surface. We saw a step-function increase in the capability of silicon, that you expect another one. When we go from fourth generation to fifth generation and as we add processors and you started to see more and more, you know, development of L2 plus plus and in direction towards level three, you started to see the amount of computing power going up. So for us, it’s basically a significant revenue accelerator within automotive. And specifically on your question on gross margin, the highlight may be two additional factors to what Cristiano said. I think we have the we’re transitioning from chip sales to a chip sale and so as we go to a module. It increases the revenue opportunity for us as well. And then in addition, we have software opportunity on top of the chipset, which also helps our margin profile. So that we still model the business in line with our corporate average, but it really is a business that has several vectors of growth as both of us are blind. Thank you. I like Cristiano’s from the Life of the Effect area with thanks to America’s Curities. So you should see a few questions. So thanks for adding my questions. So the first one, I’ve actually mentioned Apple products is I think 2 billion plus for fiscal 27. What about the royalty contribution? How does that evolve as you approach the date for kind of re-negotiation, re-negotiating that business? Yeah. So depending the re-negotiation, the royalty, we don’t expect it to be changed. It should be in the same scale that it has had and it’s an independent business separate from the chip business. And for my follow-up, Cristiano back to this type of scale or the question, I realize you’ll give more details around this day. But what is Qualcomm’s intention to approach this from an ASIC perspective? I thought you planned to enter the data center from a merchant perspective. But are you saying that now the goal is to approach it from an ASIC perspective? And if that is the case, what impact does it have on margins? Are you really going to compete head on with the other ASIC suppliers that are out there? So this is going to be more up on one on one right side approach to the market as opposed to approaching the market in a broader merchant. So what is kind of the broader strategy go to market strategy that Qualcomm has in this business? Very good. Great question. I think the answer is all of the above. Look, first of all, as a new intern, I think we were very flexible. But we also look at the reality of what’s happening in the hyperscaler. So you can see the majority of the revenue for some of my conductor companies has heavily concentrated in a few number of very large companies. And those companies have now had indicated very clearly they have different, as the data center gets disaggregated, you have different approach to compute to connectivity. And you should assume that Qualcomm will play on merchant on custom and is going to be combination of how we’re going to configure our IP and different IP blocks for different solutions is going to be a bespoke business. And specifically on a question on this custom engagement we talked about. We do expect that to be good. Thank you. That concludes today’s question answer session. Mr. Long, do you have anything for the ad for joining the call? I think obviously I want to say is to please ask everyone to, again, or June 24th, I think investor day. We intend in an investor day to really highlight not only I think everything that is happening with the new Qualcomm, but also I think the details of the products and knowledge we have been developing for the data center space, provide an update in how physical AI is performing or business and provide the clarity that we have today, how really agents in agentic experiences actually has brought implications in our entire business. And I look forward to speak to all of you and the way to thank our partners, our employees for a great quarter as we continue to transform Qualcomm. Thank you very much. Please, an gentleman. This concludes today’s office call. You may now disconnect.