Dave Fullwood: Yeah, thanks, Bob. And so, maybe I’ll start with Huawei and kind of size what we’re seeing for you. And prior to the ramp of the new phone that they just announced, they were doing about 2 million units a month. And so we’ve seen a typical premium tier phone ramp where that peaked up. Last couple of weeks of data, we’re actually seeing that come back down. So they may be on the other side of that ramp. But if you look at the incremental growth that we see over what they were shipping previously, it’s — on an annual basis, it’s about 10 million to 20 million units. So that’s a pretty good growth for that customer, but it’s not that meaningful when you look at a total market size of about 1.2 billion smartphones per year.
Now, when it comes to our China customers, as Bob said, a large part of their business and a lot of their growth is coming from overseas business and so we’re very well represented across our China OEM customers and certainly in that overseas business, that’s where we see a lot of the higher share and growth opportunities. So it’s not just a China domestic situation that you have to look at. You have to look at that overseas business. And many of those customers have pretty significant market share in a lot of those overseas markets.
Operator: The next question comes from Toshiya Hari of Goldman Sachs. Please go ahead.
Toshiya Hari: Hi. Thank you. I just wanted to follow up on the China Android market. I guess specifically, what kind of trends did you see in the September quarter on a sequential basis? And what’s embedded in your guidance for December? And related to that, we’ve been getting more questions about the competitive landscape in China. You guys have pretty good visibility and obviously you’ve got good relationships with your customers. As you think about models coming out in 2024, any concerns around market share, how should we think about gen-to-gen content growth, particularly as it pertains to your OEM’s export business? Thanks.
Bob Bruggeworth: Dave, you want to handle that?
Dave Fullwood: Yeah, sure, Bob. Let’s see, where to start. The China customer base in the export market as well as in the domestic market, they’ve got some pretty compelling products. As Bob said, I was just over there a few weeks ago, I got to meet with all of our customers. Our relationships continue to be very strong. They place a very high value on what we bring. And they all reinforce that Qorvo is their main global strategic supplier for RF. So we have deep discussions with them on roadmaps to align their needs to our product plans. And they’re very highly engaged on our new low, mid, high S-PAD platform that we announced a couple quarters ago. Additionally, they’re looking at expanding their business with us in other areas such as power management, sensors, and the L2 wideband.
So the overall market, as Bob mentioned, the channel inventories are approaching normal, many of those customers are getting to pretty healthy levels. So as we’ve been saying all along, what was a headwind is now becoming a tailwind. So we’re starting to see that growth. We had our largest bookings quarter in over two years. So our customers have now gotten past the concern about inventory and they’re looking forward now and starting to place orders more aligned to what their true production plans and unit demand is. So that’s certainly improved a lot. Now having said that, as Bob mentioned also, we’re not anticipating any major rebound in the end market. We’re just excited about the design wins that we’ve had and the inventory in the channel being cleared out and that’s driving a lot of our growth as we go forward.
Toshiya Hari: Got it. And then as a quick follow up outside of mobile, some of your broader analog peers have talked about signs of weakness or clear signs of weakness in industrial and parts of automotive. I think comms infra has been weak for a couple of quarters now. But I guess the question is, outside of mobile, what kind of trends are you seeing, and what sort of trajectory are you assuming as you sort of progress through the December quarter and go into March outside of mobile? Thank you.
Grant Brown: Sure, Toshiya, this is Grant. Let me take that one. We don’t explicitly guide by segment, but the views for each of those businesses is factored into our total guidance. I’ll try to provide you a little bit of color there and then Dave can jump in and add. We have a pretty diverse collection of businesses that serve a number of end markets, and they’re not all in phase. As Bob pointed out last quarter in fiscal Q2, ACG returns to the year-over-year growth that we expected, and we’ll continue to see that for the rest of the year. And then this quarter, our fiscal Q3, we forecast our CSG segment will return to year-over-year growth. And then finally, in Q4, we expect HPA to return to year-over-year growth. So the businesses are a bit out of phase, if you want to think of them that way.
Just continuing with HPA as an example, directly to your question, if you look inside of HPA, there’s various trends within each end market. It probably won’t surprise you, but the base station market being weak, is an example. Our revenue is down over 50% year-over-year for the last four quarters. A few years ago, actually, we hit $200 million in that business before the Huawei ban and the 5G base station rollout slowed. But outside of China, only 25% of that mid-band 5G infrastructure has been built, so there’s a lot of opportunity. But that’s one area where we continue to see some meaningful headwind and market weakness. Beyond that though, there’s also the broadband area within HPA. We have a very strong position there, high level of share, but the DOCSIS 4.0 upgrade cycle may be a bit slower and there could be some pockets of inventory in the very end products there.
So the situation within infrastructure is very different than, say, our defense and aerospace group where we’re benefiting from significant strength and expect to grow in fiscal Q3 and fiscal Q4. So, there’s a lot of cross currents there when you get into the details, but this is why we maintain a diverse set of businesses. And a lot of them share the same manufacturing footprint, which creates the operating efficiencies, but also scale and the diversification on the top line.
Bob Bruggeworth: What I’ll add to that is in the cellular IoT market, actually we saw this turn about two quarters ago down. So with CSG coming back, as Grant pointed out, growing next quarter, that’s — we’re not expecting the IoT — cellular IoT business to come back. That’s been down for us and we’ve been working through inventory in that segment as well. So I think that’s been some commentary as well.
Grant Brown: Yeah, I think you mentioned automotive as well. And we’re growing from a pretty small base there. So Bob talked about a lot of the design wins. We’re pretty excited about the growth opportunity there. So that’s all new programs. It’ll be ramping over the next couple of years to help drive that growth for us. But it’s coming off of a relatively small base. So we’re not as exposed there to really maybe see some of the things you’re seeing from some of our peers.
Operator: The next question comes from Ruben Roy of Stifel. Please go ahead.
Ruben Roy: Yeah, hi, thank you. Bob, I wanted to ask about the ultra-wideband marketplace. I think in the past you’ve had a few system wins in the Android ecosystem for ultra-wideband. I don’t know if they were characterized as flagship back then, so maybe if you could talk about the [roll-out] (ph) opportunity in smartphones specifically that you’re seeing and then expanding outside of handset? Again, in the past I think you’ve characterized the market as several hundred million dollars of opportunity. You’re talking about a $250 million lifetime opportunity in the auto win. So has anything changed? Are you seeing accelerating development? And if you can give us an update on how you characterize the opportunity, that’d be great.
