Core Viewpoint - Qualcomm reported strong growth in its QCT non-Apple business, with a revenue increase of over 15% year-on-year for the second consecutive year, and expressed confidence in achieving a combined revenue target of $22 billion for automotive and IoT by fiscal year 2029 [1] Group 1: Financial Performance - In the latest quarter, Qualcomm's QCT revenue was projected between $9 billion and $9.6 billion, with an EBITDA margin of 27% to 29% [1] - Mobile business revenue increased by 5% quarter-on-quarter, with an 8.9% year-on-year growth despite a decline in Apple revenue [1] - IoT revenue remained flat quarter-on-quarter, while automotive revenue is expected to reach $1 billion [1] Group 2: Strategic Partnerships - Qualcomm secured a long-term agreement with Xiaomi for high-end smartphones, which will utilize Qualcomm's chips in global and Chinese markets, with Xiaomi being the first to launch the next-generation Snapdragon 8 Elite chip [1][11] - The partnership with Xiaomi has expanded beyond smartphones to include automotive, smart glasses, wearables, and tablets, indicating a sustainable and beneficial collaboration [1][12] Group 3: Market Outlook - Qualcomm anticipates normal seasonal revenue patterns for Q1 of fiscal year 2026, adjusting for the expected decline in Apple's market share [6] - The company remains optimistic about strong performance in the upcoming quarter, driven by new product launches and a robust demand outlook [5][7] Group 4: Data Center Business - Qualcomm is focusing on two product categories in the data center space: general-purpose CPUs and inference cluster accelerators, with a strong emphasis on leveraging its IP from Alphawave [4] - The company is in discussions with key clients regarding its data center offerings and is optimistic about the market potential [4][8] Group 5: Competitive Position - Qualcomm maintains a solid position in China, with an increasing share of QCT revenue, and expects to sustain its competitive edge in the automotive and IoT sectors [11][12] - The company has a long-standing partnership with Samsung, with a baseline market share expectation of around 75% for its chips in Samsung devices [9]

Core Insights - Apple has launched its first modem, the C1, with the iPhone 16e, following its acquisition of Intel's modem business in 2019 to develop in-house technology [1] - Qualcomm remains a dominant player in the modem market, with its latest X85 modem expected to significantly outperform Apple's initial offering [2][3] - Qualcomm's CEO highlighted the advanced AI capabilities of the X85 modem, which enhances performance in weak signal conditions, creating a performance gap between premium Android devices and iOS devices [3][4] Company Developments - Apple's C1 modem is featured in its most affordable smartphone, the iPhone 16e, while reports indicate ongoing development of modems for higher-end iPhone models [4] - Qualcomm anticipates that it will cease supplying modems to Apple by 2027, indicating a shift in the competitive landscape [4] Industry Trends - The importance of modems is increasing in the age of AI, with Qualcomm emphasizing that its technology will remain relevant as consumer preferences evolve towards high-performance modems [5] - The competition between Apple and Qualcomm in the modem space is expected to intensify, particularly as Apple seeks to enhance its modem technology for future devices [5]