Operator: Our next question comes from the line of John Murphy with Bank of America. Please proceed with your question.
John Murphy: Hi, guys just two quick ones. First, if you could just discuss exactly what on with the January price hike, so we can understand why folks may have pre-bought in front of that, just to understand how big that is? And then the second one, Amnon, as you’re making this progress with SuperVision as far as book business and discussions, are the customers just kind of throwing up their hands and saying, listen, we just can’t do this ourselves or these other partners. So we’re just kind of handing the keys and becoming exclusive with you or are they sort of parallel processing other systems and what – how is that developing?
Amnon Shashua: I don’t think the story is so dramatic as to handling the key, all right? OEMs do what makes the most sense. They want to deliver a product, they want to deliver a competitive product, they need to compete with other OEMs, they need to provide value to the customers and they see what Mobileye is doing. I think the launch of the ZEEKR SuperVision created a kind of a significant moment. Because it’s one thing to show a development system and other thing is to show production system doing something very impressive. So it’s not that OEMs decided to throw in the towel, it’s simply a natural evolution of a competitive landscape. You need to be able to deliver brands with the best technology and use the suppliers for it.
The EyeQ Kit allows the carmaker – I think, the EyeQ Kit was a very important moment here. It allows the carmakers not to completely tweak our system at the black-box, but to add to it their own software and to create further differentiation, but trying to replicate what Mobileye has been doing, personally I don’t think it makes sense, really, because, I know the amount of investments that’s being done. And this kind of investments cannot be done just through money. There is a time factor forward – a significant time factor forward. So I think that the ZEEKR launch created kind of a reality check in many of our OEM partners.
Anat Heller: And about the EyeQ talk
Amnon Shashua: Yes in terms of the EyeQ costs, we’re talking about a
Anat Heller: $1 to $2 of an increase.
Amnon Shashua: $1 to $2.
Anat Heller: And it’s not a significant impact in terms of buying ahead now before this slight increase.
John Murphy: Thank you very much.
Dan Galves: Thanks, John. This has to be all right – this is going to be our last question, .
Operator: No problem. Our last question comes from the line of Steven Fox with Fox Advisors. Please proceed with your question.
Steven Fox: Hi, good morning and thanks for squeezing me in. Two questions if I could, first of all on at CES the conversation around your radar innovations were pretty interesting. I was wondering beyond just the technology roadmap. What else is going to drive your ability to start disrupting in that product space? I guess you’re talking about going to market in 2024 to trying to win new business. And then secondly, as you it’s sort of right-sized for the volumes needed under SuperVision by the end of this year with your manufacturing partner is that when we should start thinking about gross margins and SuperVision, improving or do we need more volumes beyond like end of calendar ’23 to start seeing that improvement? Thank you.
Amnon Shashua: Okay, I’ll start with the second half of your question the gross margin in terms of the cost of production is not volume-dependent. We simply did another spin-off the – off the hardware. Was a highly – was better, optimize the component, so that would reduce our cost. Another part of the increasing our gross margin of SuperVision is higher bundled. Once the bundles, once software bundles will include beyond highway that – increase our gross margin, was it first half.
Anat Heller: Radar.
Amnon Shashua: The radar it’s important to mention that our motivations for building those radars is not just to enter into a new market place was to create a very streamlined, eyes-off a system where you don’t need a 360 degree awareness from ladders and because that is expensive. We want to limit the ladder, only for front-facing and the remaining 360 to be handled by imaging radars and those imaging radars that we’re developing really cutting-edge in terms of. Now 48-by-48 channels, 100 DB of sensitivity and they can create an end-to-end autonomous driving experience as another layer of redundancy. And that would considerably reduced the cost – of and eyes-off a system. I’m talking about an eyes-off with the full capability, full ODD.
Steven Fox: Great, that’s very helpful. Thank you so much.
Amnon Shashua: Thank you.
Dan Galves: Thank you. Thanks, Steven. Thanks everyone for joining our first earnings call as a public company and we will see you next quarter. Thank you again.
Amnon Shashua: Thank you.
Anat Heller: Thank you.
Operator: And this concludes today’s conference and you may disconnect your lines at this time. Thank you for your participation.
