00:00I do want to talk about the products and the push that Qualcomm has been trying to make in making
00:04sure that exactly what comes out of this technology pipeline is not only going to be of use to the
00:11clients that you're selling this to, but more importantly, the end users like me.
00:15What new should we expect out of this?
00:19Romain, first of all, thank you for having me.
00:21We're super excited about what we're showing today.
00:23It's really this event is our annual celebration of all the new technologies that we're going to bring to the
00:29various devices that we power.
00:31And it's going to be in hundreds of millions of devices over the next couple of years.
00:35The central theme of the conference this time is very much agentic AI.
00:39As you know, I think there is this proliferation of agents and the next kind of next big step in
00:45how people use AI rather than a question and answer mode.
00:49We're now at a stage where you could ask a task to an agent and the agent can go through
00:54all the steps that are required to complete the task.
00:57And then Qualcomm is bringing that to every device we are in, not just in smartphones, but in automotive, but
01:02in PC, in industrial devices, in robotics.
01:06And then we're also developing chips for data centers.
01:08So we're busy.
01:09We're setting ourselves up for the next big transition in AI, which is agentic AI, and very excited to bring
01:17these technologies to all these partners and devices that we participate in.
01:21For this agentic AI push, and we've seen a couple of companies, obviously, in the news lately, really sort of
01:28making a big push into that and the introduction of that.
01:30But how much is that an actual chip story or a Qualcomm chip story, to be specific, rather than what
01:37we see on the software side?
01:40Yeah, I think there's a lot that the chip needs to do.
01:42I mean, you're seeing that in data center with NVIDIA AMD and others, and now Qualcomm.
01:46The same applies to the device side.
01:49You need technologies that can deliver this computing engine to the software at very, very low power.
01:56There's a lot of data that also gets collected in the chip.
01:59And so being able to offer that context to the agent about the location of the person, the sensors that
02:05are in the phone, in these other devices, being able to give all this data to the agent so that
02:11the agent can be smarter and more educated about what it needs to do.
02:14It's a very important role for the chip maker and Qualcomm to play in this area.
02:19I mean, also, you know that what Qualcomm is really good at is delivering high-performance, low-power computing and
02:25AI.
02:25And so we're bringing that to each of these devices, and that's a very important part of the experience of
02:30agentic AI.
02:31Give me a sense here as to the bridge right now.
02:33When we start to talk about agentic AI and all the other sort of use cases for AI, there's been
02:38a lot of talk about what's the hardware that power is at.
02:41Is this sort of a PC-based revolution?
02:43Is this a smartphone-based revolution?
02:46Or maybe some other sort of product that we haven't thought about yet?
02:50Are you bridging that gap to whatever that product is?
02:55I think what you're going to see is you're going to see that come through in consumer devices and enterprise
03:00devices.
03:01In consumer devices, it'll be in phones.
03:04It'll be in PCs.
03:04It'll be in these new category of personal AI devices that are being built, like glasses or even necklaces and
03:12brooches and things like that, watches and earbuds.
03:16So we're excited.
03:17I think this is something that's going to be pervasive, and you're going to pick a device now with the
03:22primary goal of being able to interact with this AI agent so that you can do the tasks you want
03:27to do with it.
03:28So very excited about those technologies coming into each of these devices.
03:32Is what you're announcing, and more importantly, I guess the longer-term strategy here, I mean, when do we actually
03:37start to see that kind of materially show up in shipments and revenue, incremental shipments and revenue for Qualcomm?
03:45I think you should very much think of next couple years as the year of proliferation of agents, and it
03:52will happen across consumer enterprise, other devices.
03:55And so we're very excited.
03:56I think it is coming soon, and I think the chips that we announced today, we are going to bring
04:03those to our premium handset.
04:05So both Snapdragon 8 Elite Extreme and Snapdragon 8 Elite, the two new chips that we announced, bring in very
04:12high-performance AI, very high-performance computing, and, of course, connectivity that Qualcomm is very good at.
04:18I mean, how is the smartphone market, though, right now, Akash?
04:20I mean, I know there's a lot of long-term excitement about sort of what that phone in our pocket
04:24could actually do for us, but you've seen, obviously, a lot of the concerns about demand.
04:28And then, of course, there's the idea of the cost, the input cost into that, particularly with memory chips.
04:33Is that getting better, improving?
04:36I think you're seeing a little bit of an impact, clearly, in 2026 of the size of the market, especially
04:41at the lower tiers, where we've seen an impact from the increased memory cost.
04:45But I think when you step back and look at where Qualcomm does very well, it's more at the premium
04:49and high-tier devices, and those devices have been surprisingly resilient.
04:53I think even with the increase in prices, the device is so central to what the consumers do and how
04:59they live their lives and the amount of time that is spent on the devices that we're continuing to see
05:04strong demand in that area.
05:05And that's where we're bringing this innovation first, and then we're going to waterfall it down to every tier in
05:10the handset portfolio.
05:11I mean, with what you're launching, I mean, is there going to be enough premium growth in the Android side
05:16of your business to make up for some of the losses that we're seeing with regards to losing Apple's modem
05:21business?
05:22I think the way you should think about it is the technologies we are bringing is not just about smartphones.
05:28The products that we announced today are smartphone products, but really, these technologies are relevant to every personal AI devices.
05:35They're relevant to automotive, industrial.
05:36They're going to be relevant to robotics when that starts scaling, and a very similar flavor of the technology also
05:43goes into the data center solutions that we build.
05:46So it's very scalable.
05:47I think it's very foundational to how the world is transforming and AI is evolving, and we're very happy to
05:53be a part of it.
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