Manning, re: Akash’s view- transcript below......................................................................
Snip>>>> investor day uh in a few months
Akash, it is good to see you. So, uh let's dig into this. You you beat on revenue and earnings for the quarter, Akash.
00:06Speaker A
Your guidance misses consensus and it sounds like the issue here, uh it's memory tightness impacting handset builds.
00:13Speaker A
Just walk me through what you're seeing Akash and and how long do you think those memory constraints persist, Akash? You know, is it a quarter, two, longer?
00:24Akash Of course. Well, great to see you first of all. Thanks for having me. Uh we had an incredible results for the first quarter. We had record revenues, uh record earnings per share,
00:34Akash and then within our chipset business, we had record for handset revenues and record for automotive revenues. So very happy to the quarter that we reported.
00:42Akash The when you think about the following quarter, which is the guidance quarter, uh we gave very strong guidance in automotive and IoT, automotive growing greater than 35% on a year-over-year basis and IoT growing in low teens.
00:54Akash Uh the challenge that we outlined is really for the handset business where the demand continues to be strong.
01:00Akash Um we saw consumers continuing to buy handsets as we had expected. Uh our design win pipeline within chips is very strong as well and the economic backdrop is is is reasonable as well. So when you put those three together, the demand profile in handsets has not changed.
01:21Akash What has really changed is our customers' access to memory and pricing, uh given the success of data centers and and several of the memory vendors redirecting some of their supply to the data center needs.
01:35Akash Um the handset customers are constrained and what you're seeing being reflected in our outlook is really uh the adjustment process that the customers are going through.
01:42Akash And we see it as a short-term phenomena that'll get settled over some period of time. There are a lot of uncertainties at this point, so difficult to pinpoint the timeline, but uh it is a short-term phenomena that'll get settled. I think the demand is very important for us, it's stable.
02:00Akash And as we look forward, we're confident that we'll be able to tide this and continue uh kind of on our on the trajectory our handset business was on before this started.
02:07Dan Akash, it's Dan here. Good to see you. Um, I you know, I I wanted to just uh kind of ask about where the kind of landscape is as far as the the different types of of handsets that are being impacted, right?
02:24Dan Because, you know, you guys aren't the only ones that are being impacted by by memory, obviously, you know, we had Apple discuss that, we had uh different PC makers are are kind of, you know, dealing with this as well.
02:35Dan It's not just, you know, smartphones, laptops, it's anything kind of that uses this kind of memory. Where where are you seeing this though as far as the the the price point? Like is it is it the lower end handsets, the higher end? Is it, you know, where does that sit?
02:41Dan And then I I want to ask, you know, about the the data center business that you guys have, that's in early innings still, does it play into that at all or is that just on a separate note?
02:52AkashYeah, so they these are great questions, Dan. And when you think about the handset market, if you're a handset OEM, a lot of your margin and profit is made in the high tiers.
03:01AkashThat is where Qualcomm is very strong and so as the OEMs kind of work through the constraints, we very much expect them to be able to fulfill the needs they have over the premium and high tiers and that should help us a lot because that's again, as I said before, that's where Qualcomm is very strong.
03:14AkashUm you might see a little bit of volume being sacrificed at the mid low tiers where there might not be enough supply and so there's a little bit of impact on us, but I think the key focus for us is focusing on the high tier where Qualcomm is very strong.
03:26AkashData center is an area that we are extremely excited about. We're, as you know, we're not a material player in that business today, but as the data center is changing, inference is becoming more important, power efficiency is becoming more important.
03:36AkashWe're able to bring the technologies that we have created on the edge and and create something unique for us. So we've come up with these new chips, we call it AI 200 and AI 250 that come this year and next year. And what they will be able to do is deliver inference performance that's best in class at very, very low power.
03:57AkashAnd then we're also addressing with AI 250 memory bandwidth, which is one of the constraints that data center operators have.
04:03AkashAnd and so as we come in with these unique chips that give an advantage to uh to to our customers, we're very optimistic about the traction that we'll get around it and we're looking forward to our investor day uh in a few months where we'll provide a lot more details about the product and the traction and the customer interest.
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