Live from CES Day Two and The Future of EV Charging

drop in profit as chip sales they plummet. We discussed the demand outlook with semiconductor giant Qualcom h CEO Cristiana arm On joins us. But first and foremost we get to those markets, and today was a day of macro, not micro. Today was a day of jobs data of non farm payrolls showing that basically've got a Goldilock scenario when it comes to the federal reserves. Eyeing of the jobs market, the SMP sergs more than two percent, the NASA having its best day in a month, and this

is largely because we saw wage inflation. The pressures they're just staled back somewhat so still resilience in the job market to run a thirty two thousand jobs added, even though we keep talking about there's headlines and technology of job losses there this is not featuring at a federal macro level, and therefore we see a resilient job market, but a cooling in inflatory pressures. Two year yields absolutely

dar back. Money palls in to the bond market as we think the Federal Reserve can take its foot off the gas when it comes to rate hikes. Let's slip it on again. Let's get into some of the micro moves, because amid there's joy in the market, we see some of the big tech moves move higher. Apple was the biggest mover in terms of points we're seeing up well four point six points, up almost four percent, but that really helped the benchmarks moved to the upside. It's once

again worth more than two trillion dollars. First solo getting a bit. This isn't light of Wells Fargo saying it's one of their best ideas of three there's so a company surging one point eight percent, one of the best performers on the SMP and Biogen I want to shine a light from biotech for you today because the FDA giving it spread up approval of of course, the Alzheimer's drug. The biogenn is in partnership trying to tackle at the moment.

So we're seeing up two point eight percent end, but really overall we want to dial it back to what's happening and sees what's happening on the floor, what's happening in terms of well in the car story. Really that is upon everyone's lips. It really does feel like a car show rather than electronic show. End. Yeah, it's day two here in Las Vegas, and evs are still top of mind, not just the announcements, but actually everyone is paying attention to Tesla A raising A drops as much

as eight percent Friday. This is all about EV competition heating up in China, such an important market. Shares down after the company slash prices for its cars in China for the second time in three months, and then you look at its rival Burkes A halfway back to b y D raising prices and posting record sales. I'm so pleased, Caroline that Bloomberg's Kevin Tynan is alongside me here in

Las Vega. Guess, of course, our Bloomberg Intelligence senior analysts for autos, you have a very clear view on this. This is a demand problem for Tesla, isn't it. Sure? Look and globally regionally, the auto industry is cyclical, and these TV makers, including Tesla, which is the oldest of all, just haven't been through this kind of demand earth um

here or in China here. Money was easy and cheap for years, so we went through this period where evaluation goes through the roof because it's easy to afford vehicles, and this is the first time that these companies are really gonna be challenged. I should say that Tesla closed up almost three percent. It was down almost eight cent at one point. You know, the market's kind of making up his mind. But over the course of weeks, the downward pressure on the stock was about demand. It seems

there's a competition angle. You know, you look at what Mercedes announced here. Uh, you know, focus globally, but also United States, in China. There are so many more players. Our investors kind of now waking up to the idea that Tesla is not the only game in town. I

think so. And I think on top of that, I think the idea of EV adoption slowing is becoming a reality as well, um in terms of mining materials, who controls the materials, increased in prices of the materials, and then the real environmental impact of the technology providing the energy generation to power a fleet of electric vehicles like these are all things that through the period that is ending now really weren't talked about or considered as deeply

as they are going to be now well said. And it's interesting that one of the co founders of Tesla went off to try and think about how you can recycle batteries, how you can make that more of an environmentally friendly means of driving. Kevin, I'm interested that at the same time as worrying about Tesla in China, while they're dialing back prices for Tesla, b y D just seems to be cleaning up. Of course, this as a

company that's backed by the likes of Warren Buffett. How big is the pie getting of EV and how much is market share being eroded by other players in the space now? Yeah, Look and and ideally each of the regions if you look at North America, you look at Europe, and you look at China, the governments are essentially the wild card in terms of whether penalizing automakers for not doing more EVY or subsidizing the losses. And here in

North America and US specifically, you know we don't. We're doing neither, right, We're we're incentivizing the consumer worth federal tax credits. Um. So you have a different demand profile and supply profile in each region based on how the government gets involved. And in China, you know, their push for adoption is much greater than it is even in Europe,

and certainly more than it is here. So um, you're just going to get this kind of demand profile that we don't know over here, and that is being driven by penalties in Europe. All right, bloom beg inteligencies. Kevin tun is so good to hang out and pick your brain here in Las Vegas. Thank you. In a few minutes time, we're going to discuss the future of electric vehicles.

We've mess ad is board member and CTO Marcus Schafer. Yes, so much more to discuss there and in fact, and as we dial back demand for autos, in fact, as we dial back demand well for anything that involves a chip. At the moment, semiconductors have been under some significant pressure. Just look at the quarterly profit coming from sam Summer Electronics. It was its initial profit forecast, and in fact it said it fell the most in more than a decade.

Of course, it's a little bit of a sign in the global economic slowdown, and it's hurting electronics demand even more than many had actually expected, sometimes operating profit plunging sixty nine percent. To remember, this is the Bellweather of South Korea. It's its largest company, and Sundsung has kind of in grappling with weak demand for memory, cheap chips, smartphone starting back displays of course less in demand. It's all about what had been the pandemic ramp up ed

and then this sudden are back. We see it whether it's the purchasing of these goods, and of course in many ways that's why we're seeing the reflection and people cutting jobs at these sorts of companies too. The dynamic here is is fascinating. Yes, there's just a complete drop in demand for d ram right, there's memory chips. Also, think about Apple, how difficult it was for Apple in the final month of two the worries around demand for Apple handsets and how there was such a revision for

the four year number. Will remember, ironically, Apple is so important to Samsung's business as well from that memory perspective. So we're going to continue that conversation here in Las Vegas. Later this hour, we will discuss the chip outlook with Qualcom's CEO, Christiano am On Carrow, which is, you know, I can't wait because they are so key to that smartphone market as well, and he's actually managed to weather supply chains so well with the business and has remains

pretty bullish throughout all of it. We'll see how he's talking about overall end demand at the moment. Meanwhile, coming up, so much more to be talking about. We've got more on cars. As I kept saying, this is kind of an auto show as well as electronics show. I'm going to exclusive conversation Marcus Schaefer Mercedes Benz Group as the car maker launcher's efforts to expand their own electric vehicle strategy. But first we also going to talk about and wearable

tech continues to be a top trend. I know you're seeing at CS and it's only getting bigger. According to our CEO, Tom Hale. Just got to listen what he told it a little bit earlier in terms of the holiday season. We actually went into the Black Friday Cyber Monday with a price increase and we saw incredible unit volumes and incredible unit economics as a result. So we're actually bucking the trend, and I think that's part of a larger trends. Post COVID, people are much more aware

of their health, of their wellness, how they're feeling. We've got a mental health crisis amongst teams. We've got people really starting to think about longevity and sleep is the foundation of all these things. And as a product, we've been spearing right into health right. We want to we want to extend from sleep into heart health. The American Heart Association just declared eight you know, sort of key

factors in health. Sleep is one of them, and if you're getting bad sleep, you're gonna you know, you're gonna higher risk for cardiovascular issues, mental cognitive health. Alzheimer Parkin says, people are just much more aware of but now and that's really the tale when they're driving it. Yeah, there might be short term economic concerns, but what values your health priceless. I think was one of the best years

in the car industry from the car makers perspective. I think supply is still limited and demand is still exceeding supplies. I don't see as a challenging year. From dort to Motiv perspective. That was the CEO there of Mobile I and here it's CS Las Vegas. Sustainability has been a big focus, not just for tech but also companies as well.

This year's CS luxury car make a Mercedes Benz announcing plans to build a global network of ultra fast charges four evs, the first stations this year in North America, later expanding to Europe and then China. And I'm delighted to say, Caroline, they're here with more on the e V outlook from Mercedes Benz is their chief technology Officer, Marcus Schaefer. This is a real announcement, This is a real move by Mercedes to drive EV adoption, to drive electrification.

Talk us through the timeline for rollout of this charging infrastructure. Well, this Mercedes branded globally charging infrastructure is complementing a roaming network which is currently existing UH and consisting of one million points, so it's a great addition to this network. The timeline to establish our own network globally in North America, Europe is starting twenty three and completion actually is planned by twenty twenty seven. My question is why are you

doing this? You know you you have electric vehicle offerings in key markets. Do you think that this will be a driver of sales for those legacy Mercedes buyers who want to go electric I guess are concerned about charging. Why are you doing this? Well, if you are an EV driver and you know all about the experience and all the shortcomings range anxiety, but we want to provide two customers to all, must say the customers a real premium.

Range anxiety is still an issue though absolutely absolutely. I mean despite we offer probably the best rangers in class, so just look at the eque as more than four hundred miles of range. That's phenomenal, But still looking at the market, I think still there's range anxiety. So to address this, we need a premium charging experience, and that's exactly what we're targeting. Let's look at some of your electric vehicles and let's look at ultimately demand for them.

There's range anxiety, but there's also economic factors that player. At the moment markets you were perhaps ahead of what we're seeing on today. With Tesla. Tesla cutting its overall supplied to China, you had to do that back in November. What does the man look like for you globally and in specific, what is it like in China. Well, if I look at the global markets, there's a high increase

and a production of Mercedes Pense EV vehicles. So the pace we are introducing and the growth rate we're having is more than one. Looking at the first nine months of twenty twenty two, so customers accepting our vehicles, so the introduction is just in full swing. So we are in the market with eight electric vehicles, which is probably the most comprehensive portfolio of evs in the market. And the first cars are entering the Chinese market in an

interesting segment, the top end segment. Now we just we're in the course segment, starting in the course segment. Now we're entering into the top end segment, which is not existing at the moment, a segment over one million R and B which is a one hundred fifty U S dollars. That's an interesting segment. And now the first offering is there for Merced dispense the EQS electrics class interesting, so that our a luxury sort of price point is still

their markets. But what about the middle and what about pricing pressure there? Well, it's a it's a market that's not a solid market yet, so there are always new players coming into the market. The ice market is very well established over a long time, but the EV market is very fragile at the moment, new players coming into So it's about content, customer acceptance and pricing and so the market is just getting in the balance at the moment. We surprised that you had to cut prices in China

in in November of last year. Was that something that caught you off guard a Mercedes a little bit? Well, as I said, it's it's a new it's a new bracket that's coming together, so their new players entering it. So we were in this bracket for one million R and B started there and we did reposition the price. But still after repositioning, we are in the top not bracket. Still talk to us about adoption overall markets. We actually

went to our own audience. We asked them in a poll on Twitter, at what point are they going to be getting into the e V space if they're not already, And actually in large part said they already owned one, but the majority said that they'll be buying one in three years plus, so they still need hearts and minds one. They still need perhaps the infrastructure that you're building out. But what also about do you need to meet from

a supply side right now? Have you got the right talent, have you got the right software technicians at the moment? Are you managing to avoid any supply side problems coming down the pipe? Well, I think they are lots of challenge. You're starting from R material through battery assembly planned, but attacking all these elements and there really is through under sixty degree approach. So we're taking care about DR materials.

So we're changing our sourcing activities, really taking care about DR materials, talking to mining companies, having off take agreements, establishing our own or joint venture cell factories or battery assembly plans, and converting all production and global assembly plants worldwide. So we are in the midst of completing basically this um This really is three under sixty degree approach here,

and the one missing point was the charging infrastructure. So now you have it all starting from raw materials up to charging. Really in the comprehensive to under sixty degree. That was a big commitment on charging software. I want to talk to you about Formula one, but we can't. Not today another time Formula one, but talks me about software. It's competitive on the hiring side. You look at some

of your peers, VW had some challenges with software. Do you feel happy with where you are with talent, with the timelines for development for the platforms that are in work sorts me about software, Well, we're absolutely happy. So we just completed hiring or three additional software engineers and actually the company is very attractive and so we had really no issue attractive talent, the best talent on the software site. So right now we're establishing our own operating

system MBO as we call it. It's a chip to cloud software actually, and it's on track. So we're going to market in twenty five actually, and even in the next class coming out this year, we will have the first glimpse of how this operating system will look like. So there's great software talent on board, and as we were able to show here at cs OR, is the first idea what this software will deliver in terms of performance.

I've got to ask you about autonomy level three you've received the permit for Nevada or inside California maybe this year. Do you think that that will happen. Oh, we are actually really really hopeful that that's going to happen soon. Actually, so, the d m V of Nevada approved our application. That's a great step moving from level to lever the three.

We call it the moon lendings that first time, really responsibility is taken over by d vehicle itself, if not by the driver anymore, and no hands and no eyes on the road anymore. But still, of course safety is a keute element for us. As going to say, dispense. Marcus Schaeffer has been so great speaking to you, Mercedes Ben's chief technology officer, say well, enjoy the rest of CS interesting will be speaking much more with qual Calm

about autonomous driving and the technology behind it. So movement. When it comes to ft X, Behamian and US officials overseeing the bankruptcy of the Crypto Empire have actually struck a deal. They're going to work together. They're going to end most of their legal disputes. Now this comes at a time while the ripple effects of f t X are going far and wide. We've got to focus in on silver Gate, the key lender to many crypto firms.

It too continues to plummet. Let's talk about the share slide, about the implications of bluemosh Yang following the FTX implosion and the contagion effects. Silvigate such an important player when it comes to the crypto ecosystem and basically saw a run on the bank, but for quite different reasons, and

we usually expect for a run on the bank. Yes, so silver It's really one of the most important bank in the crypto space because it provides banking services um deposit services to companies in the cryptal industry, which is historically kind of cut off from the rest of the banking system. And silver Gate really made a name for themselves as being this very essential provider of banking services to crypto players and it benefited over the years when

the crypto market was in a ball round. But now, as we know, one of their biggest client was FTX,

which is in trouble. And then there are other depositors who are mostly concentrated in the cryptal industry are also pulling out assets and deposits from the bank and hence we saw this run off a Bank for Sewergate, which is very different from the other run of banks UM that we've seen historically during the Great depressions, for example, what's extraordinary is that it survived it It survived an eighty billion draw down, a basically pulled down on deposits.

What it isn't surviving so much is investors confidence. In particular, Kathy would Well known for buying the dip, has not bought the dip on silver Gating. Fact, they sold out almost entire mentality of their steak. What what's investor sentiment like around this name? UM The investors still have great doubts about the future of the company. I think super is a really unique name in the market in the

sense that is really doubling down on crypto. There are other banks that are friendly with crypto, for example Signature Bank that are starting to scale back their exposure to

the cryptal industry. But for silver Gate, they talk about how there's they're still deeply committed to serving the cryptal clients, and that of course introduced great uncertainty for its future because there's all the regulatory overhand, and there's also the the market conditions that's not looking good for crypto and therefore analysts are worrying that the run of the bank will still continue for Silvergate. The UK readio story yesterday

about the worst case scenario. Are we add a worst case scenario with all this crypto concern um sally UM. I think there's still significant concerns in the industry UM for some of the remaining big players. UM. This week, for example, Genesis, we solved further lay off for the company, and then we're still looking for more updates from both

Genesis and the parent company d C g at. Their both just big important players that in the crypto industry that historically played an important role building up the industry for others. So UM, there's more to see for sure. Besides the companies that are already in the bankruptcy court. Yu Chiang has been continuing to follow the fallout. We

thank us so much for it from Blomberg News. Meanwhile, of course, many of sort of rift that you maybe you're getting out of crypto and you're going into the new big talked about space, which is AI artificial intelligence, and there's some latest news on that because we're all talking about chat, GBT and some of the generator AI. But New York City public schools have taken we'll aim

at this. They're banning its students from accessing chat gbt on its networks, on its devices, saying, look at the chat gybt, which is called an open AI program for generating text, and some speculate could be used to cheat on essays or other assignments. And the public school system is therefore saying, look, they're worried about safety, about accuracy, and actually more about well creation, creativity, about intelligence in

the way in which children youth build it. And this of course was something immediately that people thought about when they started playing with this particular program. Is that, boy, where's content editing going to go? Where's copyrighting going to go? Where is the ability to be able to mark the students essays? I just find it astonishing how quickly we went from brand new, exciting tech to plagiarism, and how many column inches already written welcome back to Bloomberg Technology.

I'm Caroline Hide in New York with Ed Ludlow, who is out in a very busy Las Vegas. Said, Yeah, there's a lot going on right you. You get caught up in the moment here. You can't ignore what's going on globally. There are macroeconomic concerns, but a report from Bloomberg Intelligence says US Machinery three sales and earnings may prove more resilient than previously thought. We've had all kinds of announcements here and so I'm delighted how we're joined

by Zeeman's US CEO, Barbara Humpton. Barbara, let's start with farming. I didn't expect you, of all people, to come to Las Vegas and talk about vertical farming. Please explain, well, who knew that actually the agriculture sector is adopting digital in a big way. And today's Semens and eight Acres

announced our partnership we've made. What is the partnership. Eighty Acres is a vertical farming outfit to entrepreneurs in the food industry decided there's got to be a better way to get healthy food to people and eliminate the long logistics supply chains that actually result in less nutrition. What they've discovered is that with vertical farming they can produce three hundred times the produce from a single plot of land than would be possible outdoors. And and they're using

Siemens technology to make that happen. Well, want to ask you about this technology. You know when people hit hit the name Siemens, they think all kinds of things, electronics, industrial equipment, healthcare equipment. Which part of your business is it that is making this happen? You know what? This is an all of the above, and we've actually been engaged in so many ways. It was our Siemens Financial services that first identified the company and made the investment.

Then it was our digital industries team bringing the software and hardware to help ad acres control their they're growing process. Then we discovered that they needed the help of our smart infrastructure team because the building envelope actually there. They have sustainability goals. So here's a farm that uses n water less water than than regular farming, and so it's a sustainable solution using all of Siemens. Now I say

it's all of the above because think about healthcare. Do you know food is medicine and this is a team that is now figuring out how to engineer crops so they can deliver the nutrients we need to actually combat disease. Is interesting. In the end of your press release, you then push it forward to the future. You talk about the R and D on you talk about Zemen's technology, about AI machine learning, how that's going to optimize plants

in the future in this macro environment. How much is Zeeman still willing to be committing capital to R and D to the future when we're so worried about the here and now. Oh No, Siemens has a long history of investment in R and D because we know we can't sacrifice the future. And so what we're doing with adi Acres is yes, partnering them on the research and development. The big issue that we're trying to work on now

is how to scale. It's one thing to be able to put up a single farm, and they have done so in seven cities around the United States. It's another thing to then make that i P available to others who might want to establish their own farms, and then bring that technology into the hands of others who can make use of it. Talk to us about there. For ultimately, we are a world, not just the nation hit with inflation.

We're worried about access to food, particularly when you think of European issues, particularly a war and between Russian and Ukraine, the impact that's had on agriculture. More broadly, how are you as a as an executive, as a leader of an enormous business, thinking about the macro headwinds, about inflationary environment, about the labor marketing, feeling positive or a little bit more worried. Well, of course we have to be. These are grave times where we have to be very realistic

about the situation we're dealing with. But we also have to understand that these moments of disruption give us the best opportunity to shape the future. So what we're doing at Siemens, we are a company with technology that transforms the every day. We're in the backbone of economies around the world. So what we're doing is working with our customers to make sure that we're helping them meet the needs of their local customers in order to help people

get through this and actually thrive. I believe that what we're going to get through this disruption is some new modes, some new business models, some new ways of delivering products and services. I'll say at the edge, where we've been able to bring technology out to as nearly mechanical questions. Indeed, our layoffs on a reality for a company like you, not at Semens. Right now, the situation we're in is

that our backlog is huge. I don't know if you've seen the numbers, but in two we had an absolutely stellar year, and so at the moment, we're working hard to meet our customers existing require this. In fact, I have opened I have job openings across the US, and so I'm hoping that people will come to our website and let us know if they're interested. And I do think the overall it's an interesting point you make, asking straight on about jobs, and I'm interested, Boba mole. Probably

about your clients. What do you you said, You're really your focus is to help clients with their own supply chain keeping things local. Are you fitting your client saw in expansion mode or contraction mode? Well, here in the US, Siemens is making expansion plans. You would have seen last year.

We made the commitment to build e V chargers of a million of the chargers over the next four years, and we have new operations going up in Texas, for instance, in addition to what we already had in South Carolina and in California. But in addition to that, we're looking forward to expanding other portions of our operations because quite frankly, with the investment being made in the American economy right now. We see investors going big here on that. And I

can ask you about software. You know, you made this kind of software push in the US. I want to know about the success of the accelerator. I want to know about integration with Brightly. Can you just give us a quick update on that? Absolutely? Yeah, rightly. How fun a North Carolina business that's been brought into our smart infrastructure business and so they now have access to the full portfolio of customers that Siemens has across the country

and around the world. So that integration is going well. We're continuing with additional software investments. We are absolutely working closely with the US government because of course these deals get a lot of scrutiny these days, but I'm happy to say the US government has been seeing Siemens as a good, responsible owner for these businesses. All right, Well, perhaps more deals to be announced, Carroy, Siemens US CEO, Barbara Humpton, thank you very much. Now, finally some good

news for the airline industry. Delta is now offering free WiFi for all passengers. Earlier I spoke with Delta CEO Ed Bastion about the News. This is about giving our customers something that they've been asking for and wondering about for years, why don't they have it? And we also know that there's no place in the world you pay for WiFi except on an airplane, and then we needed to fix that. You and I were here in and

a lot of this is coming full circle. It seems like as part of your big tech plan, you are gonna have to make further investments. But talk us through those investments, the in cabin tech that you're going to improve, and is there a dollar value that you can put

around all of this. Well, we've invested a bill over a billion dollars the last few years just to bring the free WiFi to our customers with Vice at that we're launching that because it's not just the satellites that you pay for, but it's also the equipment, the routers, the downtime on plane. So it's been a pretty significant technology investivating its own right. Secondly, we're going to be bringing more than just WiFi. We're gonna be we also

introduced Delta Sinc. Which is going to be a broader entertainment, experiential channel that when you're on board Delta we have exclusive partnerships who A Mobile, American Express and Paramount Plus to bring quality experience that you can only get on Delta aircraft and not on the ground. The other thing that we did over the last several years, which again we talked about three years ago at CS, was the

airport and ground experience. We have opened the new l a X facility, the new Laguarity facility, the new Salt Lake City facility, the new Seattle facility, a head of schedule on all those projects because we put the pedal down during COVID. Once we realized that we were going to be stable and make it through, we accelerated the push to get this work done, and so we're actually a couple of steps ahead of where I even thought three years ago would be. Interestingly, it's kind of a

tough one, isn't it. Add I don't know if I want to have great WiFi on a flight, because I kind of enjoyed the whole non contactable element to all of it. But then we do need to work the frustration around paying a whole load of money and it also not really working that efficiently. It's good to see that if someone's trying to get ahead of the curve. It feels as though everyone's gonna have to follow. See. Yeah,

it's interesting. It is the first move and he promised the speeds will be faster than even in the room. He gave the presentation in here at ces A Bastions a tech savvy guy, and I asked him, do you need to hire more tech talent? He was like, nah, I think we've got this. Yeah, they recently needed that

sixty million funding around for job as well. So really trying to double down on investment in tech mean, well, we'll go double down more on your technology information coming from Calcolm, we're going to talk well satellites and chips. In that conversation to Pole and CEO how he navigates

what is perhaps some concerns about end demand. This is bring back so earlier we talked about how Samsung posted a historic sixty cent drop in profit as chip demand drops worldwide, but how a competitors like Qualcom going to avoid the same fate. But luckily CEEO Christian Ammon is here with me in Las Vegas. I actually want to kind of start on the news of the day, which kind of answers that question. A deal with a Radium to bring satellite based messaging technology finally into the real world.

I don't mean to cause offense, but we've been waiting for this kind of thing for a long time. Yeah. Well, we're very excited about it. By the way, it's good to see you, happy to be here. Uh, we're very excited about this announcement with a Redium. But I think I needed to probably step back and tell what he means. We work with them for over two years to really design this technology. They could leverage their satellite network in

a regular phone. It's the regular phone firm factor, not a specialty satella device, but that whenever you wore in the globe, you have the ability to be connected and send a message to anybody you want. And I think it's about redefining connectivity for Qualcom snap Dragon to say you are gonna be connected period, that is that it stops at the phone or do you see a business case where you can use satellite connectivity in other forms

and devices electronics? Great question. So the way we're thinking about this, and I think it's the beginning of a new era when satellite communication is going to be added to phone. So the way you think about communications. Every phone and every other device have seller have WiFi, and now you get at said com and we're talking about some very interesting use cases. For example, we're taking this technology as well to laptops. So a laptop even if if it needs to send a message to the I

T Department or vice versa to unlock cars. Think about your have a car and there's an airbank deployment. It's an important message you need to get out there's an air airbank deployment. Or how you put on the map, how you can look at a car, how you can find a car. So and I think it's just the beginning of a number of applications. I think this sort of sums up your tenure in so many ways. Christianity. One, you have come on and you've told investors again and

again we are more than just smartphones. We are more than just laptops. We are about automotives, We are about getting into new types of devices. Is that the answer? How is that currently going to weather? What is basically a warrior around end demand four things like smartphones. Look, we are very proud of the company diversification strategy, and we said correctly we're going to be sequalk on technology and alter you see qualking technologies, the brother IoT when

when I think about c E s uh. This has been an outer show for us. We have five major announcements and I'll started with something which is people didn't expect other qualcoms. We unveil a concept car and people will say what Qualcom a concept car and we're basically showing what's possible with this technology when you think about the car connected to the cloud, the snapdrag condition of

cockpit in a in autonomy. We also announced um that we have a partnership with Salesforce because car companies now with all of those beautiful screens and all this connectivity to the cloud, are going to be talking to their customers all the time, not only when you go to the dealership, so all of a sudden you need to do CRM. In depart we announced there were in a second generation autonomy chip. We announced that we now have

ability to bring ad s to enter level cars. So we're very proud of all the progress the company is doing in Alto. And yet Christiano end demand for cars is under pressure. We see that with Tesla's concerns surrounding that business. At the moment, we've got concerns around end demand for so many products. Give us your macro perspective, your bird's eye view. When will we start to see a pickup in demand? When are you seeing a weathering

of this carent economic storm. Okay, And that's that's a very interesting topic of conversation because this is an industry in transformation. So I think there's two aspects. One aspect is, you know, the macro definitely impact demanded. Auto has been more resilient than other consumers sectors like handsets, and the reason is because there was already pent up demand for auto coming from the supply shortage. But you know, like

everything is impacted for the macro. But the other aspect is exactly more interesting, which is investors are looking at car companies and asking two questions, are you electrical, are you able to electrify? And are you digital? And the digital is a necessity. Car companies are investing in digital very heavily because that's the future of the industry. That's going to define winners and losers. And we see the opportunity for semis in each car to increase faster than

growth of the number of cars. I'm gonna ask you someday about a school of thought that's building. The smartphone boom and bus cycle is dead. We are only driven now by the need to upgrade, as in the boom cycles dead. I'm sorry, do you agree with that? It's just upgrades that drive adoption and drive purchasing. Okay, So smartphones is today the world largest consumer electronic products, right, and actually you can think about computing, mobile computing now

happening on a smartphone. Now everybody in the world a few exceptions, have a smartphone, so it's a very mature market. So it just only grows organically. So as the market that doesn't grow. So it has been now in all regions basically being driven by upgrades. So while the units are we're still have not recovered from pre pandemic levels

on the total sides of the market. But we see an interesting phenomena people when they buy their next smartphone, it is really an upgrade, uh market Now they want a better phone. We saw, for example, with the pandemic, collaboration and productivity came to phones. People doing team calls and some calls. They want a better camera, they want a better display. I think that trend will continue and uh we just launch five G five G still being deployed,

five G advances coming. It's going to be the next big upgrade of five G, and I think that's going to drive audios Christiana. Another trend amid the pandemic, of course more to the negative rather than a different way in which we use our smartphones, was supply chain. That was actually one that you navigated very expertly, if I might say so. But just talk to us about supply chain. Headaches for you, for welcome, for the industry are there

in the rear view mirror. Now, uh, as he relates to this supply chain constraint, we are a little bit in the rear mirror. I think there has been largely resolved. Like I can say today that we have no shortage on any technology or the companies still have some shortage. They're they're going to be doing better. As we go to the thousand twenty three, you're gonna see some residual shortagh on auto maybe all the way to the end of the year, but mostly behind us. So that's I

think that part is solved. The other exciting part is there's now broader recognition the semiconductors are important. I think important for the digital economy. I think with the supply chain shortage, if there's one positive thing is people it was understood the importance of some my conductor companies, and there's this desire now to build capacity in different locations. You see of the United States Chips and Science Act, you see the European Chips Act, and those are actually

building capacity in a geographically diversified way. That's in the We're in the beginning of the phase and that's very good for the industry and for the long term. You have been a regular attorney a se AS even when others of know you had lost yet in person, can you just give us a sense about what it's been like this week. Have you met with many other CEOs, other executives. Business meetings always is simply about the products, announcements. Very busy. I you know, obviously CS is back to

its full force. I think, uh, you know, Gary Shaperior did a great job. I think I see most of the companies are back here. He has been very busy, back to back meetings, I think with other CEOs with partners um. I think it's exciting day. And of course CS has become a very important auto show so automotive companies are here in full force as well. Now I'm

gonna hold you to account to someday. You've been talking about the pipeline forward a motive for a long time, but we start see real revenue growth from that wards motive businesses. Yeah. Well, we're very proud of the automotive business. Is a pipeline now in access of thirty billion dollars.

And we did say, uh in our Auto Investor Day back in September, by two thousand twenty six, Uh, that pipeline is going to convert into about four billion dollars of revenue twenty six and it's going to be a creative to Mark to Mars's and q CIT We're gonna get to over nine billion dollars at the end of the decade. I remember you coming on with us after that or to invest to day. Keep coming on with us, Carl, come CEO, Christiano Arman. We lo ak forward to having

another conversation. Enjoy the rest of CS back in force. New New Year's sort of easing in ed straight to it in Las Vegas at CS and it felt busy, but in the midst all the CEO interviews and things you were getting done there. I mean, what was the weirdest stuff you saw? Because there's always something highly ridiculous, that's hard, that is hard. You know what's funny. It's just the people you see walking around wearing kind of weird headsets and you're not quite sure what it is

you're looking at. Um. You know, there's also the kind of concept things. Robot dentists are extraordinary, Producer Margarite Gallerini when he got her teeth done by a robot. Today you see all the A r VR headsets, But for me, it's just the footfall. You know, there's hundreds of thousands of exhibitors here and then hundreds of Fortune five hundred companies. And you've heard it from Christie no m on. It

seems like CS is back back and realistic, pragmatic. Like we were just talking Christian about twenty six deadlines and about revenue becoming reality. How much does it feel like it's affecting us in the here and the now? You heard it right, Sexy realism, that's what Bloomberg News called it. It's about being pragmatic and profitable. All of those sort of distant futuristic concepts are less so now it's more about products that can come to market into three years.

That's particularly true of the auto makers, and we heard it from Mercedes right, this commitment to finish the EV charging network globally by I think he said, didn't he Yeah. I also asked your question on our Twitter spaces a little bit earlier in but like, how diverse does it feel regionally geographically kind of people they're women, men, diversity in and on itself. Yes, certainly, we have many more women executives on the program leading big tech companies this year.

It's diverse or the floor, but also international. Right, there's so many big names from major here. Then you think about the names missing. Apple is not here, and I always find that fascinating given the focus right now on their business. All eyes on Apple is actually one of the best performers in terms of points for the S and P today, So all eyes on next week's stock performance. That does it. But there's very special edition of Blomberg

Technology from New York from Las Vegas. Safe trip home, ed, have a great weekend. This is Bloomberg