We want to welcome our Bloomberg TV and radio audiences worldwide. Shares a Qualcomm under a bit of pressure. The company posted third quarter results showing a bit of lackluster growth in the smartphone market. But this story longer term has been a move into other areas. Delighted to say that qualt Com CEO Christiano rmon joins us now and you and I've discussed this so many times, the move into
IoT and in particular automotive. So I thought that a good starting point would be to ask when smartphone and handset is no longer the majority of revenue and when that kind of tipping point or how close toward that tipping point is where your diversification efforts have shifted the business model.
Very good, ed great talking to you. Look, I don't really understand what not to like about it. We have been consistently delivering what we said we're going to do. I think the company has changed. The company created a
lot of growth opportunities. And to answer your question, we outline, I think in last year on our investor day a plan that we're going to have twenty two billion dollars of non handset business by fiscal twenty nine, and at that point we expect the company to be diversified at a fifty percent non handset revenue and we continue to
execute on that plan. We're happy with it. We provided a new metric, the new metric that we provided as we as we provide guide for fiscal twenty five, we now expect that we will have this second consecutive year of QCT or chip business non Apple growth of fifteen percent, So we have second year double district growth on non Apple revenues. I think the company continued to diversify, continue to generate growth. Were executed what we said we're going
to do, and we're happy with it. And we're creating optionality for the company in other areas for example, data center, in robotics, all of those which are going to be upside to the plan. So we're just going to continue to execute on our strategy.
The data point is new right QCT x Apple revenues, and I was interested to read and understand it. You've also like communicated quite a lot about this this shift as Apple moves away from your modems for iPhone. May I ask, like what you think investors need to understand and remodel for or even what is it that miss investors are misunderstanding about that that process.
Christiana, Look, I believe that investors are probably still over indexing on this short term and I and they've been focuning about Qualcom as a handset company. I think the handset market has been a market that has not been growing. And then you have this conversation about the fact that Apple's transition to their own modem. You have to step back, and you have to step back, and you have to understand the Qualcom has very very unique and competitive IP
across many areas. We're no longer just a communications company. We have very compelling computing IP both on the CPU, on the GPU, on the AI accelerator of our NPU, and this IP is creating leadership position in other industries. Actually execute on our growth and diversification out of nowhere,
we create an automotive business. We're now going into the era of AI at the edge with industrial Our IoT had a great quarter and exceeded expectations because of a new personal AI devices like the metaglasses, and we're growing on Android. We had outlined where we're going to be doing five percent. The market will grow on Android five percent per year at our investor day, we're doing in around ten percent, So the company is showing it's growth and earnings power fifteen percent.
Yes, So I'm sorry to interrupt you. There's so much I want to get through because I understand the calculus on the long term. The thing that many were trying to understand is the pull forward effect of tariffs. Did you see in the data or anything that would suggest orders went in in one h or in the rose recent quarter and then won't show up in the second half of this year.
Now, and that's reflected in our in our guide, we had a strong guide and handsets for the next quarter. I think we'll remind folks that we don't have flagship lines in this quarter and we have seen no pullings.
If you're listening live on Bloomberg TV and Radio, we're speaking to the qualcom CEO, Christiano. I'm on Christiano. I don't know if you remember, but you know two years ago, almost of the day you and I sat on stage and did a demo of an on device running of an LM in aeroplane mode. Two years on, I'd like to ask if that shows up yet in revenues and how that's playing out in the real world.
Yes, you have to. You have to look on how people are using those devices. And we provide an interesting data point with the Samsung galax S twenty five, that is to what they're selling right now compared to the prior phone. The Galaxy has twenty four. The use of Google Gemini is three x triple. So what you're starting to see more and more you have people using AI. It's a mistake to be talking about is this cloud connected?
Is this on device connected? Is both? The smartphone is the most cloud connected device in the world, and we have a lot of processing power in our devices and we see that playing out. And in this quarter we said something very unique head We said, first time ever we show one billion parameter model running on a glass, on the smart glass. So think about, for example, the use case of everything you say to the glass. You can have an immediate response with the model running local sites.
And this is how this is going to evolve.
You know, I'm probably one of the few journalists on the planet that likes to rip apart things, including cars and servers. I've been thinking a lot about your automotive business. You've made gains, sales are up, but I wanted you to talk through the equation of content per vehicle and whether that's the key metric that's going to drive growth.
The most of our growth right now is exactly converting our pipeline into revenues. Remember we outline a very large pipeline of design wins. As those cars are being launching, they're launching, they're getting to sop those started to show on their revenue. That's what's driving our growth. We're actually not our growth has not been driven by the side of the market is by converting. It's above share gain converting the pipeline. Having said that, we see content and
automotive accelerating. More and more computing is going to the car in the digital cockpit for GENAI use cases. A lot of OEMs are adding use cases on the dashboard of the car, on the entertainment because we're going to be working from the car, get entertained from the car, we're going to talk to the car. The second thing that we see is content for AIDS and autonomy, and
that is adding a lot of processing content. And we have a runway ahead as a lot of these software defined vehicles change micro controllers into a central computing So we have a roadmap to continue to increase content.
Christiano, I asked this same question earlier in the hour to arm CEO Rene has So I'm going to ask you the same question out of share objectivity and fairness long time partners, when will you bury the hatchet? My understanding is investors want to see movement towards that.
Look. The most important thing, we had a trial. We are incredibly happy with the trial outcome. It determined that Qualcom is fully licensed for Orion CPUs and we'll continue to be able to build armed compatible CPUs. So, from our perspective as our ability to continue to build incredible
products and ship to our customers win great shape. And I think you should be looking at Welcome as a company that has the ability to provide one of the best armed compatible CPUs, and we're going to bring that across every one of our markets.
Cristiana, I'm on Qualcom CEO. Thank you for your time here on Bloomberg Tech.