The paragraph is an introduction to the Qualcomm Fourth Quarter and Fiscal 2024 Earnings Conference Call. It includes information about how to access the call, mentions key speakers like Mauricio Lopez-Hodoyan, Cristiano Amon, and Akash Palkhiwala, and highlights that the call will discuss non-GAAP financial measures along with forward-looking statements. Cristiano Amon announces that in fiscal Q4, Qualcomm achieved non-GAAP revenues of $10.2 billion and non-GAAP earnings per share of $2.69, with $8.7 billion from the chipset business and $1.5 billion from the licensing business.

In the fourth quarter of fiscal '24, Qualcomm is advancing its growth and diversification strategy, aiming to transition from a wireless communications company to a connected computing company focused on AI. The company highlights the potential of on-device AI to transform technology by enabling new capabilities, enhancing personalization, and ensuring privacy and security. Qualcomm is working with key industry leaders like Microsoft, Meta, and Amazon to promote AI-enabled edge computing, which is driving a new wave of semiconductor innovation. At the Snapdragon Summit, Qualcomm showcased its partnerships, notably with Meta, to support their advanced AI models on Snapdragon devices, aiming to enhance productivity, entertainment, and convenience for consumers and enterprises.

Qualcomm is collaborating with Amazon to enhance cloud-to-edge solutions, enabling custom model deployment on Snapdragon platforms via the AI Hub, which has seen a 50% increase in model availability. They introduced the Snapdragon 8 Elite, featuring a cutting-edge CPU and improved NPU, marking significant performance and efficiency gains. The Snapdragon 8 Elite has seen successful launches with brands like Xiaomi and Oppo, with further plans for Samsung and ASUS. Additionally, Snapdragon X Series platforms, including the new Snapdragon X Plus 8-core, are expanding personal computing possibilities, offering high performance and battery efficiency for affordable AI-enabled PCs, with support from major OEMs like Dell and Lenovo.

The paragraph highlights Qualcomm's advancements with the Snapdragon X Series, introducing new features like Copilot+ for laptops and affordable mixed reality headsets in collaboration with Meta. It mentions AI-enhanced Ray-Ban Meta glasses and Snap's new Spectacles. It also discusses the launch of the Qualcomm IQ Series for industrial IoT applications, offering robust AI performance and suitability for extreme conditions, aimed at evolving edge computing solutions across various industries.

The paragraph introduces Qualcomm's IoT Solutions Framework, aimed at simplifying the development of end-to-end applications and improving operational efficiencies for enterprises. It includes recommended chipsets, software support for various operating systems, reference designs, libraries, SDKs, and access to cloud services and channel partners. The Networking Pro A7 Elite platform is highlighted for enhancing connectivity and computing power at the network edge, featuring advanced technologies like Wi-Fi 7 and AI processing for innovative applications in security, energy management, and health monitoring. Additionally, Qualcomm's new Snapdragon Cockpit Elite and Snapdragon Ride Elite platforms are presented, offering improved automotive safety, faster CPU performance, and enhanced AI capabilities for assisted driving.

The paragraph discusses the advanced capabilities of the Snapdragon Cockpit Elite and Snapdragon Ride Elite platforms, highlighting features such as gaming, 3D graphics, AI, and ADAS systems. These platforms, adopted by automakers like Li Auto and Mercedes-Benz, offer flexible architecture for integrating digital cockpit and automated driving functionalities. The company expresses satisfaction with its product advancements and customer engagement, anticipating further strategy discussions at an Investor Day event. It also reports strong fiscal quarter earnings, with revenues of $10.2 billion and EPS of $2.69, driven by QTL and QCT revenues, notably in IoT and automotive sectors.

In the fiscal year '24, the company saw significant financial success, with QCT IoT revenues reaching $1.7 billion, a 24% increase from the previous quarter, driven by new product launches and inventory normalization. They also achieved a fifth consecutive quarter of record QCT automotive revenues at $899 million, marking a 68% year-over-year increase. They returned $2.2 billion to stockholders via stock repurchases and dividends. Overall, they reported $39 billion in revenues and a non-GAAP EPS of $10.22, showing a 21% year-over-year growth, benefiting from operating leverage and fiscal discipline. QCT handsets experienced over 20% growth in Android revenues, and QCT automotive revenue grew by 55%. The company generated record free cash flow of $11.2 billion, maintaining a strong balance sheet with $13.3 billion in cash and securities. Looking ahead, they expect a low to mid-single-digit percentage increase in global 3G, 4G, and 5G handset units in 2024.

In the first quarter of fiscal '25, the company forecasts revenues of $10.5 billion to $11.3 billion, with a non-GAAP EPS of $2.85 to $3.05. The QTL segment expects revenues of $1.45 billion to $1.65 billion and EBT margins of 73% to 77%, considering seasonality and adjustments from the previous quarter. QCT revenues are projected at $9 billion to $9.6 billion with EBT margins of 29% to 31%, expecting mid-single-digit growth in handset revenues and over 40% sequential growth from Chinese OEMs. QCT IoT revenues are anticipated to increase by over 20% year-over-year, with growth in consumer, industrial, and networking sectors, while automotive revenues are expected to grow by 50% compared to last year. Non-GAAP operating expenses are estimated at around $2.2 billion. The company emphasizes its progress towards diversification, highlighting the Snapdragon X Plus platform for $700 tier PCs and a comprehensive AI-ready industrial IoT chipset and software portfolio.

The paragraph discusses Qualcomm's recent product announcements at the Snapdragon Summit, including the Snapdragon 8 Elite handset platform, Snapdragon Cockpit Elite, and Snapdragon Ride Elite automotive platforms. These developments highlight Qualcomm's leadership in mobile CPU performance and digital cockpit and ADAS technologies. Furthermore, Qualcomm plans to elaborate on their IoT and automotive diversification strategy at an event in New York on November 19. During a Q&A session, Joseph Moore from Morgan Stanley inquires about Qualcomm's performance in the automotive sector and asks about the ARM dispute. Cristiano Amon from Qualcomm attributes growth in the auto sector to new model launches featuring Qualcomm technology. Akash Palkhiwala expresses confidence in their established license rights amid the ARM dispute.

The paragraph discusses a conversation between Samik Chatterjee from JPMorgan and Akash Palkhiwala regarding the performance of IoT segments in the company. Samik notes that while there were year-over-year declines in the first three quarters, there has been an acceleration in the fourth quarter and into the first quarter of the next year. Akash explains that they observed benefits across consumer, industrial, and networking sectors, particularly due to new product launches in PCs, XR, and other areas, which helped offset some channel inventory normalization. This set a positive outlook for the year, despite macroeconomic challenges. Samik also inquires about the sustainability of the projected 10% revenue growth in the first quarter moving into the March quarter, considering the acceleration of Android launches.

In the article paragraph, Akash Palkhiwala discusses the company's positive business trajectory and mentions that they are not providing guidance beyond the first quarter but will offer more details during an upcoming Investor Day. Stacy Rasgon from Bernstein Research inquires about chipset gross margins, noting a slight decrease in Q1 and asking if it's due to increased wafer costs or product mix. Akash responds that the Q1 guidance aligns with Q4 results and that the company is well-positioned in terms of product mix across various business areas, including handsets. Rasgon also asks about the contribution of PC products in Q4, seeking more information on their impact.

In the paragraph, Akash Palkhiwala and Cristiano Amon discuss their company's progress and excitement about the PC market. They highlight the launch of the Snapdragon X Plus 8-core chip, which positions them as performance leaders in Windows devices and allows them to access the $700 price tier in the PC market. They mention a significant growth in platform designs, increasing from 20 to 58 since their product launch in May, which signals strong traction with OEMs. They express confidence in their roadmap and indicate further details will be shared at Investor Day. The conversation then transitions to a question from Joshua Buchalter about growth in the auto sector, particularly driven by China.

The paragraph discusses the company's diverse exposure in the global auto market, with design wins across various OEMs and regions, rather than being reliant on a specific geography like China. The conversation highlights the Snapdragon Ride Elite and Cockpit Elite, noting significant AI upgrades and traction with OEMs for these solutions, which aim to future-proof software-defined vehicles. Akash Palkhiwala mentions that while their cockpit solutions are currently seeing more traction, the ADAS technology is expected to ramp up in the coming years, contributing to revenue growth. The interaction ends with Joshua Buchalter preparing to ask about the handset market.

The paragraph discusses the handset market's growth, particularly focusing on trends outside the company's top two customers. Akash Palkhiwala notes that the overall handset market is projected to grow by low to mid-single digits in 2024. A significant factor in growth is an increase in content, with chipsets becoming more capable, as evidenced by recent product announcements. There's also an improvement in the mix across different market tiers, with more devices over $400—a positive trend for the company. Notably, the guidance for the December quarter excludes Huawei product revenue, unlike the previous year, yet growth is still expected. Chris Caso from Wolfe Research inquires about whether the observed trends are a continuation of the premium segment normalization seen in the year's first half or a shift to the mid-tier market.

The paragraph involves a conversation between Akash Palkhiwala and Christopher Caso about the company's strong performance in the premium-tier handset business due to the launch of a new flagship chipset, which has led to accelerated launches by OEMs. Palkhiwala mentions a normal sequential growth in the licensing business for the December quarter, with only an extra week's absence affecting it. Tal Liani from Bank of America questions the contrasting trends reported by other companies, such as weakness in China and lower performance from Apple, asking if the company's observed strengths could be due to inventory build-up rather than actual market demand. Cristiano Amon thanks for the question but doesn't comment on other companies.

The speaker expresses satisfaction with their company's results, highlighting over 40% quarter-over-quarter handset revenue growth with Chinese OEMs in the first quarter of fiscal 2025, and 20% year-over-year growth in Android revenues for fiscal 2024, despite losing Huawei revenues. They mention outperforming competitors in the Android premium tier with more than five times the revenue. The growth is attributed to expanding premium tiers, strong product roadmaps, and improved market dynamics, such as reduced inventory issues. Timothy Arcuri from UBS questions the guidance, suggesting that without growth in 2 major customers, significant growth in China Android is unlikely, and asks if it's due to tariff concerns. Akash Palkhiwala clarifies that tariffs or pull-forwards don't influence their guidance, which is based on customer launch schedules and demands.

The paragraph is a Q&A between C.J. Muse from Cantor Fitzgerald and Akash Palkhiwala about the company's IoT business and potential internal changes with a large customer. Muse asks about the company's growth in IoT despite challenges faced by others, particularly in consumer and industrial sectors, and seeks insight into demand recovery. Palkhiwala explains that new product launches in XR and NPC drive their consumer performance, while in industrial, new AI-ready solutions have reached an inflection point with growing demand. This will be elaborated during their Investor Day. Muse follows up on a 10-K mention about a large customer possibly shifting to internal solutions, questioning how such a move might affect QCT margins.

In the paragraph, Akash Palkhiwala states that there is no new information regarding their current agreements, reiterating that the company's planning is based on existing assumptions. Qualcomm expects their share of phone launches to decrease to 20% by 2026, with their agreement concluding afterward. Cristiano Amon, the CEO, adds that Qualcomm remains focused on growth and diversification in various markets despite external distractions. He expresses confidence in Qualcomm's position and emphasizes the company's transition towards becoming a connected computing company in the AI era. He also expresses gratitude to employees for their efforts and looks forward to future developments.

This summary was generated with AI and may contain some inaccuracies.