Vijay Rakesh: Got it. And then on the AI PC side, any thought on how many PCs you expect with — I know you had a pretty good demo at the HCS, but with the Astra and that family of products into the AI PCs. How many PCs do you think we see in 2024 with Synaptics on it?
Michael Hurlston: Look, I mean, on our PC line, Vijay, we’re forecasting very, very modest growth in the number of units. We certainly hear all this stuff about AI PCs, our customers keep talking about AI PCs, and our customers are also talking about a pretty pronounced refresh in the back half of the year given everybody bought new PCs four years ago with COVID — the onset of COVID. Our numbers are much more muted. We certainly don’t — we’re not baking any of that in, any of that enthusiasm. If it hits, look, it’ll be very helpful, because I think what we’ve done and what we’re focusing on over the next couple of quarters is share. Where we are continuing to be excited, you touched on it, it’s a slightly different area, is the whole user presence detection that we have with one of the PC customers that’s very AI-centric and we intend to take that product and make it more of a general purpose product that will enable us in the Astra area to have a general purpose MCU with AI capability.
So our customer is pretty excited. I mean they’ve seen the sample we talked about in the prepared remarks, they’ve seen the sample of this AI MCU. They like it and they think it’s incredible in terms of the level of performance and differentiation it brings. It’ll start shipping at the end of the calendar year and into next year. And if things go well for us we expect to see a pretty big bounce on that product that adds to what we’re currently selling into the PC platform.
Vijay Rakesh: Got it. And one last question if we can sneak it in. On the handset side, you had a pretty good pick up last quarter, obviously, a big win with this 2024 as well. I missed one of your comments, but were you thinking that handset business mostly flat through the year or how are you looking at that trending? Thanks.
Michael Hurlston: Yes, I mean, I think it’s seasonal. I mean, there’s going to be some seasonality. Dean talked to that in one of the questions. I’d say for where we are, there’s limited upside. I don’t think there’s a lot of downside where we are from a share, just given the performance of the IC and things of that nature. But our attach rate is very high in China and at Samsung at this point. We said we think we can get some more handsets in the mid-tier at Samsung. That’s definitely possible given the work that the team has done. But on balance, on balance, I think we’re going to kind of track Android handset shipments at this point, and significant, significant share gains will be more difficult.
Vijay Rakesh: Got it. Thank you.
Operator: Thank you. One moment for questions. Our next question comes from Kevin Cassidy with Rosenblatt Securities. You may proceed.
Kevin Cassidy: Yes, thanks for taking my question and congratulations on the results. Just — there’s been a lot of weakness in IoT and you’re calling the bottom and seeing it coming back. Can you talk about the design activity? Maybe try to relate it to the past cycle. Is this activity up tremendously? And then also, what are your MCUs and Wi-Fi getting combined in these designs? Or are you getting some leverage on your Wi-Fi parts? Thanks.
Michael Hurlston: Yeah, Kevin, I mean — so first, thanks for the nice words. On Core IoT, yes, we are excited. I mean, I think that we’ve talked to a lot of you about design traction, and now it’s starting to hit. Again, very early innings, right? We’re still not happy with the overall revenue numbers because, as previous questioner pointed out, we’re still well below the $200 million mark. But we think we get there just based on what we had before and then these design wins start to layer in. And we’re doing well across the ecosystem with our wireless products. We highlighted a new area for us, which is automotive. As we think about the processors, those ones are kind of a longer road. So they are, yes, they are pulling through our wireless.
In every instance, we’re trying to package up our wireless and our processors. And Astra, which we had kind of a very, very soft launch before the end of the calendar year, we’ve definitely lumped in our wireless drivers in that software offering so it pulls through. What we have seen is slower than expected customer ramps. All of these new wins we have are taking more time than before, largely because our customers have kind of cut their engineering budgets, and so the ramp up time has been slower than we’ve historically seen. We’re baking in now in our thinking and our numbers, generally slower ramp times, Kevin, than we saw before — than we’ve historically been used to. But we don’t think that any of these are losses at this point in time.
We just think it’s ramping a little bit slower than we’d initially forecast.
Kevin Cassidy: I see. Great. Okay. Thank you.
Operator: Thank you. One moment for questions. Our next question comes from Martin Yang with Oppenheimer. You may proceed.
Martin Yang: Hi. Thank you for taking my question. I have one question on enterprise and automotive. Have you started speaking with our customers regarding this year’s annual budget cycle for enterprise spending? Do you get a feel that adjusting for inventory differences, 20 — calendar 2024 will be flat, down, slightly up on a yearly basis?
Michael Hurlston: Yes, Martin. I mean, I think 2024 is generally better than 2023. So it’s still an issue. We’re obviously, early in the year we’re staying close to the customers and their customers are giving forecasts. So we’re one step removed from both, let’s say, Dell and HP. Everybody’s hopeful for the second half. I mean, I think there’s a lot of optimism built into the second half. We see that. I think as we said in the prepared remarks, I think we’re working through the inventory situation. Although it’s still there in pockets, as Dean said, generally now it’s going to be what’s the demand? What’s the demand in enterprise? Definitely optimism in the second half. We think that the signals we’re getting, but we’re one step removed, as I said, so it’s still — the picture is still a bit cloudy.
Kevin Cassidy: Got it. Thank you. That’s it for me.
Michael Hurlston: Thanks, Martin.
Operator: Thank you. I would now like to turn the call back over to Michael Hurlston for any closing remarks.
Michael Hurlston: I’d like to thank all of you for joining us today. We certainly look forward to speaking to you at our upcoming investor conferences and again next quarter. Thanks a lot.
Operator: Thank you for your participation. You may now disconnect.
