I think Edge AI is proving to be a key attribute of this market going forward.
Operator: Our final question is from the line of C.J. Muse with Cantor Fitzgerald.
C.J. Muse: Yes, good afternoon. Thank you for taking the question. I guess I was hoping you could speak to QCT gross margins They impressively held flat despite revenues down 5% and I guess the real question here is, it’s not just how you did at this quarter, but how should we be thinking about as you bring on non-handset revenues to the model, what incremental gross margins might look like for QCT particularly as we think about the AI PC and IoT as well as you know auto given that growing backlog.
Akash Palkhiwala : Yes, thanks CJ. Yes, I think the first couple quarters of this fiscal year we’ve seen definitely seen strength and margin and it’s driven by the richer mix that we’ve discussed on the call. What we’re guiding for the third quarter is a sequential decline again reflecting kind of lack of flagship launches in the quarter. No change to what we’ve said on gross margins before. We’ve given a range and we’ve been operating at the high end of the range, but no kind of fundamentally change on the framework of it going forward.
C.J. Muse: Great. As a quick follow-up on the auto side, you talked about the higher backlog reiterated the $4 billion plus. Should we be thinking about kind of amortizing that 26 plus percent growth equally into fiscal ’25-‘26 or might that come in sooner with faster growth into ‘25?
Akash Palkhiwala : Yes, so I mean obviously we’re not guiding quarters that far out at this point, but if you kind of take the current run rate and extend it forward towards the $4 billion target kind of generally a slope growth increase between the two data points is a reasonable way of thinking about it. Thank you. That concludes today’s question and answer session. Mr. Amon, do you have anything further to add before adjourning the call?
Cristiano Amon: Yes. Just a few comments. I think we’re incredibly pleased with our technology and product roadmap evolution, and we’re really looking forward to our next generation PCs with Snapdragon. As I said during the call, I encourage everyone to look at the announcement from Microsoft Build and how that’s going to drive much more AI into the future — onto the Qualcomm platform. And I was just going to leave you all with a thought. One great thing is about the execution of the company. Every time we enter a new market or we set ourselves to go to a new market, and we end up building a very strong position. We went from mobile to RF front end. We became number one. Same thing when we went to Wi-Fi. Automotive, it was something that we had ambition to build as part of the diversification.
I think we’re quickly becoming the industry partner of choice. We are — believe that there’s a long-term opportunity with virtual reality, augmented reality. And now we have the absolute majority of the designs. And with PC, we clearly build the leading platform. And we have the product momentum that we hopefully will translate into financial in the coming years. So I just wanted to state that we feel good about the company technology capabilities and how we’re driving growth and diversification for shareholders. Thank you very much for the support. Thank you to all our employees. And I’m looking forward to talk to you on the next call.
Operator: Ladies and gentlemen, this concludes today’s conference call. You may now disconnect.
