“The ASPs as content increase, which we've talked about, we've seen consistently that continue to increase over the last several years. And as we look forward, we think that's very sustainable, just we're adding a lot more capability to the device and the consumers are looking for that opportunity.”

In context

“question is from the line of Tal Liani with Bank of America. Please proceed with your questions. Tal Liani: Hi, guys. I want to focus on a 20% growth of smartphones and QCT this quarter. And the question is how long will this continue? The market itself is not growing. There was -- last quarter there was growth in China that was very strong. This quarter, we have the initial Samsung. So, can you talk about longevity of the current trend? How long can it continue? Could you grow even if the market doesn't grow and then just an update on China demand? Thanks. Akash Palkhiwala: Sure, Tal. So let me break it down. If you look at our year-over-year performance in QCT handsets, we were up 13%. And as I said earlier, the drivers of those is really a combination of higher volume and higher ASPs. The ASPs as content increase, which we've talked about, we've seen consistently that continue to increase over the last several years. And as we look forward, we think that's very sustainable, just we're adding a lot more capability to the device and the consumers are looking for that opportunity. In terms of volume, one of the key metrics for us is the fact that the premium tier continues to grow. So if you look at the last three or four years, devices greater than $400 have gone from being 21% of the market to now over 30% of the market. And so that is a trend that's incredibly positive for us because that's the market that we are very strong in. And so we have a combination of the units within that part of the market is growing very quickly and within that our content is growing as well. And those are the two factors that drive the handset growth of 13% on a year-over-year basis. When you look at the March quarter, we're guiding handset growth of 10% on a year-over-year basis, which is again a very strong number. So pretty happy with how we are set up in that business and both i”