Tal Liani: Yes. Auto market, we spoke a lot about the handsets. I have two questions related. Auto market was also weak. Can you give an update on why it grew 13% versus 16% Street expectations? But this 13% is also lower than what we have seen before. So can you talk about the trends there? IoT was in line with expectations, but it’s still declining 24% a year. So what is the trend over there? And on the handset side, I’m just wondering if there was deterioration throughout the quarter or it was improvement throughout the quarter? Kind of what was the intra-quarter trend?
Akash Palkhiwala : I understand. I understand. On the handset side, really largely in line with what we had expected. So no trend one way or the other. Auto, in our actuals, came in slightly below our expectations. However, if you see what we guided for the upcoming quarter, quarter-over-quarter growth, we’re guiding low double-digit growth. So it’s just timing between the quarters that’s impacting it. Within IoT, I’d say very consistent with comments earlier in the call, it’s really the overall environment and how it impacts demand and impact on inventory is what’s reflected in our numbers, very consistent with what some of our peers have seen as well.
Tal Liani: And Akash, just a clarification on something you said. You said that December should be in line with normal seasonality. I tried to look back at seasonality, and it’s inconsistent. It’s very hard to speak about normal. What — how do you define normal seasonality for the sector?
Akash Palkhiwala : If you break it down into parts. I think you look at QTL growth, we’ve consistently seen QTL grow as a result of mix of devices and total market size. So that would be part one. The second is we’ve seen the handset market grow primarily due to the launch of a flagship device by a modem-only customer. And so we would see that as well. So those are the 2 factors that would drive a majority of our growth into the December quarter.
Operator: Our last question is from the line of Timothy Arcuri with UBS.
Timothy Arcuri : I had 2. So Akash, I’m wondering if you can provide more color just on these channel headwinds. You gave a $2 billion number, I think, for December and then that came down to $1 billion or it was supposed to come down to $1 billion in March. And it was supposed have been gone by June. Obviously, it’s not gone. Can you kind of quantify what the headwind is? And maybe also talk, is that component inventory at your customer is still coming down? Or is that handset sell-in still being above the handset sell-through? And then I had a second question as well.
Akash Palkhiwala : Yes. So when we talk about channel inventory, we talk about total inventory across beyond us. So it’s customers and channel both combined. I mean, clearly, as we’ve gone through the year, the headwinds have been meaningfully higher than we’d expected going into the fiscal year. So that is reflected in the updates that we’re giving. No fundamental change to our view of our share position and overall market we’ve talked about as well. So it’s just those factors running through our numbers. We don’t have an updated estimate of how much the total impact would be. But it’s the same factors that we’ve been talking about through the year. We’ve not changed the total market size since the last call.
Timothy Arcuri : Got it. And then just last thing. So do you have any data on the refurbished market? It seems that it has gotten pretty large and maybe it’s affecting the new Android market. Sort of what portion of the handset TAM this year do you think is used or refurb? Could it be — I mean, we’ve seen numbers in the $350 million unit range, something like that. So the market is flat to down, but the market for new phones is really actually down quite a bit. Can you actually talk to that?
Akash Palkhiwala : Yes. So we have the same data as you do on the refurbished phones. It has grown over the last couple of years. when we give the market, the global handset unit information, we’re not talking about the refurbished phones. We are talking about new phones. And so it’s already factored into the guidance we gave.
Operator: This concludes today’s question-and-answer session. Mr. Amon, do you have anything further to add before adjourning the call?
Cristiano Amon : Thank you. We’d just like to thank all of our employees, our customers, our suppliers and partners. I think the key messages were — we like our strategy, continue to execute on our strategy. We’re executing to plan. I think we have 1 of the best product road maps in our history. We like the design traction. And in the current uncertain environment, we’re just focused on taking action on things we can control and make sure we’re prepared when the market rebounds. Last comment is we see a new inflection point, as I mentioned before, on the edge from Gen AI. And what we like about it, that to happen on device, fundamentally, you need a new computing engine. We have CPU, GPU, but you need something different, which is the NPU. I think we have been investing this for over a decade. We’re very happy how it performs, and I would like everybody to follow what we’re going to show and announce at the upcoming Tech Summit in October. Thank you very much.
Operator: Ladies and gentlemen, this concludes today’s conference call. You may now disconnect.
