Ladies and gentlemen, thank you for standing by. Welcome to the Qualcomm Fourth Quarter and Fiscal 2021 Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session. If you would like to ask a question during this time, press star then the number one on your telephone keypad. To withdraw your question, press star then the number two. If you are using a speakerphone, please pick up your handset before pressing the numbers. Please limit your questions to one question and one follow-up. As a reminder, this conference is being recorded November 3, 2021. The playback number for today's call is 877-660-6853. International callers, please dial 201-612-7415.
I would now like to turn the call over to Mauricio Lopez-Hodoyan, Vice President of Investor Relations. Mr. Lopez-Hodoyan, please go ahead.
Thank you, and good afternoon, everyone. Today's call will include prepared remarks by Cristiano Amon and Akash Palkhiwala. In addition, Alex Rogers will join the question-and-answer session. You can access our earnings release and its live presentation that accompany this call on our investor relations website. In addition, this call is being webcast on qualcomm.com, and a replay will be available on our website later today. During the call today, we will use non-GAAP financial measures as defined in Regulation G, and you can find the related reconciliations to GAAP on our website. We will also make forward-looking statements, including projections and estimates of future events, business or industry trends, or business or financial results. Actual events or results could differ materially from those projected in our forward-looking statements.
Please refer to our SEC filings, including our most recent 10-K, which contain important factors that could cause actual results to differ materially from the forward-looking statements. Now to comments from Qualcomm's President and Chief Executive Officer, Cristiano Amon.
Thank you, Mauricio, and good afternoon, everyone. Thanks for joining us today. As the pace of digital transformation of industries accelerates and as devices become connected and more intelligent, our broad portfolio of technologies and solutions is creating a significant long-term growth opportunity for us. As you can see from our results, the performance in our chipset business led to record fiscal fourth quarter non-GAAP revenues of $9.3 billion and record non-GAAP earnings per share of $2.55. Notably, this is our fifth consecutive quarter of greater than 100% year-over-year EBT growth in our chipset business. We also demonstrated revenue diversification with combined QTL RF front-end automotive and IoT fiscal 2021 revenues exceeding $10 billion, an increase of 69% year-over-year.
Going forward, our chipset business represents the largest growth engine for us as virtually all devices at the edge adopt mobile technologies. We have the relevant technologies required to continue to lead in mobile and the connected intelligent edge. As the edge gains scale and connectivity and adopts on-device artificial intelligence, we're well-positioned to become a leader in AI processing. Let me now briefly highlight the strong momentum we continue to see in IoT across consumer, edge networking, and industrial. In consumer, we're pleased that our XR platforms are powering over 50 commercial devices and gaining scale with the leading VR and AR ecosystems. Our early investments have established Snapdragon XR as a device platform of choice for connecting physical and digital spaces. Recent market developments position us as one of the key enablers of the metaverse opportunity.
Additionally, the ongoing convergence of mobile and compute continues to drive demand for Snapdragon-powered premium tablets, two-in-ones, and laptops. We are pleased with the strong market validation of Arm-based personal computing and the industry transition to a new SoC architecture. We're more confident than ever in the connected computing opportunity, our upcoming solutions powered by our Nuvia CPUs, and our collaboration with Microsoft. We're also seeing increased traction in consumer electronics. Our advanced technologies are powering category-leading devices such as the Peloton Bike+ and Tread, as well as the Astro, Amazon's recently announced household robot. In edge networking, we are a leader in current and next-generation high-performance Wi-Fi 6 and Wi-Fi 6E access point solutions. We continue to see high demand for our products driven by home and enterprise upgrade cycles.
We expect this trend to continue as productivity increasingly requires video collaboration as well as cloud processing and storage. 5G as wireless fiber is now a reality in gaining scale. In the United States, Verizon recently announced 5G home internet service availability in 57 markets, including more than two million households covered on millimeter wave. In addition, T-Mobile is leveraging their 5G network to target 7-8 million home broadband customers over the next five years. We're seeing demand increase globally, making 5G as wireless fiber one of the fastest-growing last mile broadband technologies. In industrial, we have expanded our Qualcomm IoT Services Suite to more than 30 verticals.
As an example, in retail, our solutions are powering digital signage, payment, and self-checkout devices from companies like Square and Clover, as well as solutions from Honeywell, Panasonic, Zebra, and others to enable new customer experiences, help empower store associates, and improve operational efficiencies. We also continue to lead the way on product innovation with new launches like the Qualcomm Flight RB5, the world's first 5G AI drone platform. In RF front-end, we expanded our product portfolio with our recently announced ultraBAW RF filter technology that supports frequencies from 2.7 GHz to 7.2 GHz. This is the new industry benchmark for performance in this range. ultraBAW technology also supports Wi-Fi bands, including 5 GHz, the newly adopted 6 GHz band for Wi-Fi 6E and future Wi-Fi standards.
This creates a new growth vector for RF front-end as we attach RF solutions to Wi-Fi. Our RF front-end portfolio, combining ultraSAW and ultraBAW technologies, is now best in class from 600 MHz to 7 GHz. With the addition of millimeter wave, we are the only RF front-end provider with a comprehensive solution for all bands. As cellular expands beyond handsets, we're focused on extending our modem to antenna platform to automotive and IoT. In automotive, we're creating a leading horizontal and open platform with our Snapdragon Digital Chassis, which includes our telematics, digital cockpit, car-to-cloud service, ADAS, and autonomy solutions. Taking the same approach we use to make the smartphone the world's largest computing and developer platform, we're currently working with automakers and Tier 1s to create a joint roadmap to build multi-tier, multi-generation, scalable, and upgradable platforms for long-term sustainable business.
The strength of our digital chassis strategy is reflected in both our results as well as a strong design pipeline, and it's creating a platform for innovation for auto. We're also very excited about Arriver. Upon closing, Snapdragon Ride ADAS solutions will be complemented with Arriver's computer vision, drive policy, and driver assistant assets, enhancing our ability to deliver in an open and competitive ADAS platform for automakers and tier ones at scale. In handsets, we're successfully executing on our strategy. Our premium-tier Snapdragon solutions continue to gain traction with OEMs. In fiscal Q4, devices announced or shipped with our Snapdragon premium-tier products increased by 21% year-over-year. Notably, all leading 5G Android smartphone OEMs by volume continue to power their flagship devices with Snapdragon. Snapdragon continues to be the preferred choice for premium and high-tier Android smartphones in all regions.
As a result, we're benefiting from the changing OEM landscape and Android SAM expansion. Lastly, our licensing business achieved fiscal 2021 revenues in excess of $6.3 billion. QTL remains the most successful licensing business in the industry, reflecting the strength of our innovation in cellular technology, the value of our extensive patent portfolio, and our execution in securing long-term agreements with key OEMs, as well as over 150 5G agreements to date. As we have noted throughout the year, we continue to see incredibly strong demand across all our technologies as the current environment is accelerating the scale of connectivity and processing at the edge. We still expect material improvements to our supply by the end of the calendar year, and our second sourcing initiatives remain on track.
Before I turn the call over to Akash, I would like to highlight that we recently announced a goal to achieve net zero global emissions for scopes 1, 2, and 3 by 2040. We also look forward to enabling a more sustainable future with 5G through its impact on greenhouse gas emissions reduction, energy and water use optimization, green jobs creation, and more. I would now like to turn the call over to Akash.
Thank you, Cristiano, and good afternoon, everyone. We are pleased to announce record fourth fiscal quarter results with non-GAAP revenues of $9.3 billion and non-GAAP EPS of $2.55, reflecting year-over-year growth of 43% and 76% respectively. For QCT, this was another record quarter with revenues of $7.7 billion and EBT margin of 32%, both above the high end of our guidance. QCT EBT of $2.5 billion grew by 143% versus the year ago quarter on revenue growth of 56% and 12 points of EBT margin expansion. We also delivered record revenues in each of QCT revenue streams, handsets, RF front-end, IoT, and automotive.
Handset revenues of $4.7 billion increased 56% year-over-year on strong demand across all major OEMs. RF front-end revenues of $1.2 billion grew 45% year-over-year and included the benefit of pull-in of demand in advance of certain holiday launches. IoT revenues were up 66% year-over-year to $1.5 billion, as digital transformation continues to drive higher demand across our diversified customer base. Automotive revenues of $270 million grew 44% year-over-year on the ramp of digital cockpit launches and continued strength in telematics. QTL revenues of $1.6 billion and EBT margins of 72% were in line with guidance. These results reflect slightly lower than expected units, offset by favorable mix.
Lastly, we delivered GAAP EPS of $2.45, 47 cents above the high end of our guidance, driven by record non-GAAP earnings and approximately $500 million of gains in our QSI investment portfolio. Now, I would like to highlight some key achievements in fiscal 2021. We are exceeding all targets we set at our 2019 Analyst Day, which is a year earlier than forecasted. We delivered year-over-year revenue growth of 26% in QTL and 64% in QCT, and more than doubled non-GAAP EPS to $8.54. In QCT, we had greater than 50% year-over-year growth in each of our revenue streams, and EBT margins expanded from 17% in fiscal 2020 to 29% in fiscal 2021. Within handsets, our Android revenues for our Snapdragon chipsets were approximately 40% higher than our primary competitor.
With our focus on diversification, RF front-end, automotive, and IoT accounted for 38% of total QCT revenues. We returned 74% of our free cash flow to stockholders, including $3 billion in dividends and $3.4 billion in stock repurchases. Turning to our guidance for handset units in the first fiscal quarter. For calendar 2021, we are narrowing the range for 5G handsets to 500-550 million units. We are now forecasting mid- to high single-digit growth in global 3G, 4G, 5G handsets relative to calendar 2020. For the first fiscal quarter, we are forecasting revenues of $10-$10.8 billion and non-GAAP EPS of $2.90-$3.10.
In QCT, we expect revenues of $8.4 billion-$8.9 billion and EBT margins of 32%-34%. At the midpoints, this implies year-over-year revenue growth of 32% and EBT dollar growth of 49%. The sequential revenue growth is driven by handsets due to higher demand, primarily for our Snapdragon chipsets in Android devices. Following the record performance in the fourth quarter, we expect non-handset revenues to remain in line sequentially. Consistent with our previous guidance, we expect QTL revenues of $1.6 billion-$1.8 billion and EBT margins of 74%-78%. This forecast assumes sequential unit growth in line with historical trends. Lastly, we anticipate non-GAAP combined R&D and SG&A expenses to decrease 2%-3% sequentially.
As a reminder, operating expenses are typically higher in the second fiscal quarter as it includes calendar year resets for certain employee-related costs. Looking forward, fiscal 2022 will be another exciting year for Qualcomm, with year-over-year EPS growth expected to exceed 20%, driven by strength across all QCT revenue streams. In handsets, we are positioned to benefit from the $10 billion SAM expansion due to the changing OEM landscape. A portion of this benefit is reflected in our first quarter guidance, and we also expect it to contribute to the rest of fiscal 2022. Before I finish my prepared remarks, I would like to thank our employees for their leadership and contributions in making 2021 successful. Finally, we look forward to seeing you at our Investor Day on November 16, where we will provide additional detail about our growth strategy.
Thank you, and I'll now turn the call back to Mauricio.
Thank you, Akash. Operator, we are now ready for questions.
Thank you. To queue a question, press star then one. To withdraw your question, press star two. If you are using a speakerphone, please pick up your handset before pressing the numbers. Our first question comes from Chris Caso with Raymond James. Please proceed with your question.
Yes, thank you. Good evening. For my first question, perhaps you could help us out with what was different from your expectations heading into this quarter. I know that you were struggling with supply constraints like everyone else in the industry. Was it that supply came on better than you expected? You know, was it the demand? Was it a combination of both?
Yeah. Hi, Chris. This is Akash. It was really a combination of both. We had lots of strength in QCT, really across all of our revenue streams. With handsets, IoT, and RF front-end, those are the three areas that did really well, relative to our expectations. We were able to work through the supply constraints to address the demand that came up. It was really a combination of both.
Great. Maybe you could expand on your comments you spoke about, and I think I have this right, EPS growth expected to exceed 20% as you go into next year. Can you give us some details? I'm sure that's something that you're planning on hitting as you go into the Analyst Day.
Yeah, absolutely. I mean, it's just to clarify, what we guided is non-GAAP EPS growth of greater than 20%. The key driver for that is really across all QCT revenue streams. You're seeing the strength exiting the year, and that's the strength that's kind of playing out both in our first quarter guidance and also the full year. The one thing I'll highlight is within handsets, we're really in a strong position to benefit from the $10 billion SAM expansion we previously discussed from the changing OEM landscape. A portion of this benefit is reflected in our first quarter guidance, and that's also contemplated in the greater than 20% EPS growth we are suggesting. Given that, we expect handsets to grow faster than non-handsets in fiscal 2022.
Really across the board, we'll have very strong growth rates and really set up to do well in the year and beyond.
Thank you. Our next question is coming from the line of Matt Ramsay with Cowen. Please proceed with your question.
Yes. Thank you very much. Good afternoon, guys, and congrats on the results. Cristiano, I wanted to dig a little bit with you into the guidance for the December quarter in QCT. I think you guys mentioned in the script that that was primarily gonna be driven by your Android business and increased supply. I just wanted to make sure that I got that right. Obviously, that's a seasonally strong quarter for Cupertino, but I just wanted to dig a little bit more into the dynamics that are driving the fourth quarter in Android. Thank you.
No, thanks, Matt, for the question. Look, I think what you're starting to see is actually the correlation is going to different directions. You know, you're correct. It's a seasonally strong quarter for our modem-only shipments. But the sequential revenue growth is primarily driven by Android handsets and demand for Snapdragon mobile platforms, you know, both across premium and high-tier. Consistent to what we said, we see an incredible opportunity to grow way faster than the market, and Android is the primary growth driver in our handset business right now.
Very clear. Thank you. Akash, my follow-up, 33% QCT op margins in the December quarter. Obviously, there was a settlement with Apple and some things changed there, but that number, I think, was 13% two years ago. I guess it's pretty remarkable progress. I wonder if you might talk a little bit more, and maybe this is something for a couple weeks from now at the Analyst Day, but the puts and takes and drivers of the QCT op margin going forward, and where are we? Is this a seasonal peak, or is this a new trend? Thank you.
Matt, thanks for the question. Yeah, we are very pleased by the operating margin performance as well. Maybe I'll point to a couple drivers, but really we are planning to address this in a lot more detail in a couple of weeks. I'll ask you to hold till then. If you see our gross margin performance in the September quarter that we just reported, very strong gross margins, and we are forecasting in similar range going into the December quarter. Then year-over-year, if you look at the full year, so abstract back from the seasonality, we went from 17% in fiscal 2020 to 29% in fiscal 2021.
We feel obviously very comfortable with that number, and in a couple of weeks, we'll talk about how the combination of revenue growth and gross margin percentage and R&D leverage will take us going forward.
Thank you. Our next question comes from the line of Samik Chatterjee with J.P. Morgan. Please proceed with your question.
Yep. Thank you. Hi. Thanks for taking my question. I guess, Cristiano, Akash, both of you are sounding great on Android adoption of your premium chipsets going into the December quarter. I just wanted to kind of see if I can get some more color about how you're thinking about adoption of millimeter wave with the Android customers. I know there has been some investor conversation or disappointment around the primary customer not deploying or more widely rolling out millimeter wave this year. So just wanted to get kind of what you're seeing in the pipeline related to millimeter wave and how our Android customers are sounding about that. I have a follow-up.
Hi, Samik. Thanks for asking the question. Our position on millimeter wave remains unchanged, and it will remain unchanged. There are two answers to your question. The first one is continue to track exactly as we'd expected with millimeter wave in the United States. It's now commercially available in Japan across all carriers, Docomo, SoftBank, KDDI, even the new carrier, Rakuten. We continue to be optimistic about the opportunity of millimeter wave becoming commercial over time in China. The first milestone is the millimeter wave for the Winter Olympics early 2022. Japan is moving forward with millimeter wave, and nothing has changed the carriers' plans to continue to build this technology. There are a number of commercial millimeter wave smartphones in Japan that include the Galaxy Note, the Galaxy S21, and Galaxy Z Fold and Sony.
From our perspective, just knowing what we know of wireless and how the growth of data is going and the spectrum efficiency. Millimeter wave is inevitable. It's just a matter of time, and it's just different markets will deploy at different speeds, but that's how we get more spectrum, and our position in millimeter wave remains unchanged.
Thank you. For my follow-up, if I can ask you on Arriver. We've got some investors asking about how to think about the opportunity with Arriver and, how should we think about OEM customers that are looking for a full stack solution versus, OEMs that look for more of like, a, just the hardware piece of that stack and leveraging Qualcomm from that aspect. If you can provide any updates. I think you've updated us on the purchase price along with SSW Partners, but, what, any more details around the closing as well as the, price for Qualcomm standalone for the Arriver asset?
Yeah. We're very excited about the Veoneer acquisition and Arriver technology. As we said before, we're the natural owners of that asset. We believe we're on track to get all the approvals and close on this transaction. More important, as we had a business collaboration in place with Veoneer prior to the acquisition, that remains unchanged and allows us to continue to progress towards our ADAS platform. We're getting incredibly positive feedback from the market, from the ability to provide truly open horizontal platform for ADAS, and I highly encourage you to be at our New York Analyst Day. We have a lot more details to provide about what we're doing in ADAS and autonomy.
Thank you. Our next question is coming from the line of Stacy Rasgon with Bernstein Research. Please proceed with your question.
Hi, guys. Thanks for taking my questions. For my first one, I was curious, just given the current state of the handset market, what kind of handset growth do you have embedded in your, you know, more than 20% EPS forecast for 2022? Are you looking for recovery, or is it all around content cycle? Like, how are we thinking about unit growth in the market to drive that?
Yes. Stacy, for the guidance that we gave, there are no heroic assumptions on market growth. We are assuming similar scale to this year, and within that, we feel comfortable that we have the opportunities in front of us to grow.
It's still like mid- to high-single-digit?
That's right.
Got it. Thank you. For my follow-up, you know, and I know you've had supply issues. I know they're resolving by the end of the calendar year. Are you still under shipping, what you could ship if you had supply? As that supply eases up, does that have any impact on how we might think about typical seasonality in the March quarter?
Yeah, Stacy, it's Akash. We do have constraints, really across the board. You have to figure out how the demand would have played out if there was supply across the industry. We feel pretty comfortable that the overall supply picture is playing out exactly as we had planned. We saw this coming early, and we've been talking about it for the last couple quarters. We've put in place plans both for dual sourcing for certain parts. We've now announced three parts that are dual source that are available. Also, capacity expansions with our suppliers that were previously being planned anyways come in towards the end of the year. That's definitely something that we're very excited about.
On your question on the second quarter, we're obviously not guiding the quarter at this point, but it's a reasonable assumption to think that as we launch our new Android premium tier chip in the first quarter of the calendar year, that will offset some of the decline you would see in the handset market naturally within QCT. Of course, we also expect non-handset to grow from first quarter to second quarter.
Thank you. Our next question comes from the line of Tal Liani with Bank of America. Please proceed with your question.
Hi, guys. I have two questions. I'll just ask them together. What are the trends in China? Meaning the handset market is weakening, and we heard it throughout the quarter. On the other hand, there is a Huawei share loss and your share gain. I'm wondering if you can share with us kind of the trends within China and your outlook for the market. The second question is not related, but it's the second question I'm getting from investors, which is, you always say that when Apple starts using their modems, the surface area at Apple is big, and there are other opportunities. Can you elaborate, what are the other opportunities? What are they? Maybe give us scenarios. What are the scenarios that you can still manage the, transition of Apple using their own modem? Thanks.
Yeah, Tal, it's Akash. I'll take the first one, and Cristiano will address the second one. What we saw in the September quarter in the market was weakness in units in China and emerging markets. Developed markets volume remained very resilient. That's really the jumping off point for the December quarter. We are forecasting normal seasonality on top of what we saw in September. I'll say that a portion of the weakness was driven by supply imbalances at certain OEMs, and that did impact the demand to a certain extent, but that's one of the key factors we saw happening. Within the market, though, 5G continues to be very strong. We're seeing two trends in China.
First is the transition to 5G. Kind of, there's a variance month-to-month, but very, very strong in the high 70s% has already transitioned to 5G. We are raising the guidance, the midpoint of the guidance for 5G to now 520 million units. Within that, we're also seeing higher tier of devices. OPPO, vivo, Xiaomi, HONOR, all of our customers are moving up tier. As they move up tier, that creates an incremental opportunity for us. It's a pretty positive market trends for us.
Thank you.
All right, so the second question.
I apologize, please.
Okay, I'm just going to answer the second question. To the second question. We're very focused right now on our contract with Apple, which is focused on providing modem for their products. We're very happy with the relationship, but anything beyond our contract with them is an upside to our model. As I continue to say what I said before, we have a lot of technologies. They have a large number of devices, and if there are opportunities, we'll be very happy to engage with them and supply. We just don't wanna speculate at this point, and we've been very clear that our assumptions in our model is just focused on our contract. Everything else is upside.
Our next question is coming from the line of Ross Seymore with Deutsche Bank. Please proceed with your question.
Hi, guys. Thanks for letting me ask a question. Congrats on the strong results and guide. Akash or Cristiano, just wanted to talk a little bit about the pairing of the handset and the RF side of things. I know you said that there was a little bit of a pull-in into your fiscal fourth quarter on the RF side of things, but with the Android market share gains that you're talking about heading into the December quarter, why is the RF side not coming along for that ride? Is that pairing something that it's just a transition period, and as we look further out, those are gonna be more linked together.
Ross, it's Akash. It's exactly the right question. We expect the two to move together in concert, as I mentioned in my prepared remarks, and that's why we highlighted it. We did see some pull-in from December quarter to September quarter within RF front-end, and it was really where supply was available, our customers chose to take it sooner than receiving the chipset. And if you normalize for it, the two would have moved together. We definitely see the growth in the Android opportunity as a tremendous growth vector for us within RF front-end as well.
Thanks for that color. I guess it's.
No, just to be crystal clear, all of this growth opportunity that we're seeing in Android, especially premium and high, is coming with RF. I wanna make that statement clear.
Perfect. Thank you for that. Cristiano, I guess as my follow-up, if I talk about QCT ex-handsets and ex-RF front-ends, it sounds like, Akash, you said those would be relatively flat in December, but then you thought it would actually grow again in March. What's going on in those markets? And then I guess the higher level question is, given the supply constraints, there's a big debate going on in broad-based semis between investors worried about increased selectivity from customers, change in behaviors. Are you seeing some digestion period here? Why is it slowing and then why is it re-accelerating?
Yeah. As you saw, we had tremendously strong results both in auto and IoT and record results in both in the fourth fiscal quarter. You're right. Going into the first quarter, we are forecasting in line sequentially. One of the key factors there is still we are supply constrained, and we are making certain decisions, given the strong handset market in that quarter, to allocate supply a little differently based on profitability. But really, when you think about the raw demand from the customer continues to be very strong, and we're confident that when you look at second fiscal quarter or look at fiscal 2021 going to fiscal 2022, both those businesses will grow in a very strong fashion.
Our next question is coming from the line of Joe Moore with Morgan Stanley. Please proceed with your question.
Great. Thank you. I wonder if you could just talk about the overall supply chain in smartphones, and are you seeing bottlenecks at some of your customers where they're unable to procure parts that aren't from Qualcomm that might lead to inventory buildup of Qualcomm parts? It seems like overall the handset sell-through numbers are a little weaker because of those constraints, but it doesn't seem like the supply chain has changed at all. Can you just describe that dynamic?
Sure, Joe. We're definitely seeing some mismatch of parts in the short term at some of our customers, but you should think of those as really timing issues. The other thing to keep in mind is, as Cristiano Amon outlined earlier in the call, that we're focusing really on the premium and high-tier units. When our customers have supply mismatch, they actually end up supplying the premium and high-tier devices. Our chips and our devices are still being used, and it's not something that's a big factor for us in the short term.
Okay, great. Thank you very much.
Thank you. Our next question comes from Rod Hall with Goldman Sachs. Please proceed with your question.
Yeah, thanks for the question. I wanted to come back to this idea of supply versus demand in the Q1 quarter. I had heard earlier. I know someone mentioned that they were assuming that supply would be meeting demand. Well, I just wanna check that with you. Is that a good assumption, or do you think that we see supply continuing to rise to meet demand on into the fiscal Q2? I have a follow-up.
Hi, Rod. This is Cristiano Amon. Look, if you remember, we had said, if I believe, two earnings calls ago, that we acted early. We put a lot of things in place, multi-sourcing, capacity expansions, and we said that we expect to see material improvement in our supply towards the end of the calendar year. That's reflected in the Q1 guide, you know, our ability to have supply. We continue to have, you know, pockets of, areas that we would ship more if we had more, but we see a lot of improvements. We see, you know, at least three announced products of multi-sourcing being shipped. And we've been, you know, executing on that, you know, increased supply. And different companies are gonna have different outlooks.
We look at the first half of 2022, we still have some shortage, but as we get to the second part of the year, I think in general, supply and demand are gonna be aligned.
Yeah, just I guess my question was just aimed at the idea that this seems like it could continue to be a little bit of a tailwind for you as you move into the beginning of next year, and it's not just magically resolved here at the end of this year. My follow-up is regarding the Android opportunity. I wonder if you guys could comment on content there versus the other big, you know, big high-end handset maker you supply. We calculate a substantial increase in content, but I'm just curious, do you agree with that? You know, if you sell a high-end Android phone in January, is that phone gonna have materially more content for you than a, you know, another type of phone might?
Absolutely. Look, we are very pleased with the strength of our Snapdragon 800 series. The Snapdragon 800 series became synonymous with premium Android, you know, flagship smartphones. There's a lot more silicon content besides the RF front-end that's attached to the modem. You know, there's GPU, there's CPU, there's all the multimedia, and it's a lot more richer platform than just selling a modem. It's multiple times in terms of revenue and earnings contribution. When we look at the SAM available to us, when we look at the consolidation of the Snapdragon 800 being the chipset for every flagship, that's no surprise that we actually grow faster in the Android segment.
Thank you. Our next question is coming from the line of Harsh Kumar with Piper Sandler. Please proceed with your question.
Yeah. Hey, guys. First of all, congratulations on tremendous execution and diversification. Had a question. Cristiano, you talked a lot about Android and how positive you are on that. I know you were supposed to get additional supply in the December quarter. You seem to be benefiting from units. Are you benefiting from units primarily, or are you also going back and taking share that you were expecting to take from your competitors?
Look, there's plenty of opportunity with the changing landscape for growth between us and our competitors. I think what's important to highlight is that Qualcomm has been concentrated in the premium and high. There's very high demand for premium and high Snapdragon mobile platforms, both the 700 and 800. It is a share gain of Snapdragon in Android premium, and we're very happy with the opportunity to capture actually the higher value share of the market.
Maybe, Harsh, to add to that, I'll just draw your attention to product announcements that we had a couple weeks ago, where we announced a whole new set of 5G products across tiers.
Great, guys. For my follow-up, I wanted to follow up on a question that was asked about the March quarter. You talked about some benefit coming from your premium chips that you'll be launching in the March timeframe, which is seasonally weak. Now, Apple, for one, talked about leaving, I think it was $6 billion+ worth of revenues behind on the table. Do you think you might get a benefit from all the handset OEMs that are leaving revenue behind on the table along with your premium, or you think it's just, again, your own chipsets that are getting benefit from launch of new chipsets?
Well, what I said about the March quarter was really you have a seasonal decline in the handset market. Given the launch of our new chipset and really all the other chipset launches we've done over the last month, we feel like we will be in a very strong position to expand our units within the Android market. The second thing I said is non-handset growth. We expect non-handsets, all three to grow within the quarter as well.
Thank you. Our final question is coming from the line of Timothy Arcuri with UBS. Please proceed with your question.
Thanks a lot. I had two questions. The first, Akash, was on the RF business. I think you said at the Analyst Day that you were targeting more than 20% share of an $18 billion TAM next year. But you're now annualizing to almost $5 billion. So either the market's a lot bigger or your share is a lot higher. So can you just comment on that? Secondly, I had a question on the contract with the big customer. Can you just level set us, Cristiano? You just alluded to it. So can you level set us? I think it goes through 2024, but can you just help us on the timing of that? Thank you.
Tim, on your first question on the math, $3.6 billion is right, and we reported results at $4.1 billion, I think. We've definitely exceeded the target we'd set. As Cristiano said earlier in the conversation, we are very confident that we have several more vectors of growth left in the RF business, not just within handsets, but also as 5G expands into telematics and IoT and then also within Wi-Fi. Yeah, there's some ways to go, and we'll definitely plan to address that at Analyst Day in a couple of weeks.
Hi, Tim. It's Cristiano. The only thing we can disclose is what we disclosed before. It is a long-term agreement, and it's a multi-year agreement. We unfortunately cannot say anything more than that.
Thank you. That concludes today's question and answer session. Mr. Amon, do you have anything further to add before adjourning the call?
Thanks, everyone, for joining us on the call today. We are at the intersection of key trends that are accelerating edge connectivity, efficient processing, and on-device artificial intelligence. This is driving demand for industry-leading roadmap of relevant technologies, creating a significant opportunity for growth and continued diversification. In addition to driving the mobile industry to 5G, we will power the connected intelligent edge. I look forward to outlining our strategy and vision for the future at Investor Day on November 16 and sharing our next generation Snapdragon platforms at our annual Tech Summit in December. I also want to take a moment to thank our employees for an incredible fiscal year. They are truly the best of Qualcomm, and there is no better time to be part of this great company.
Ladies and gentlemen, this concludes today's conference call. You may now disconnect.