Question-and-Answer Session
Operator
Thank you. [Operator Instructions]. Your first question comes from Gary Mobley from AG Edwards, please ask your question.
Gary Mobley - AG Edwards
Hi guys. I had a question relating to your announcement with Infineon this morning. It's good to see that you guys are penetrating the low end of those phones and I am sure that will fortify your position there at Nokia for Infineon's recent win. But I am curious what sort of additional opportunity you might have in the low end of the baseband market with all the participants perhaps in particular Freescale?
Warren East - Chief Executive Officer
Gary --you know I think the question... well, the reason for the announcement this morning, one of the overlying questions that's been around about ARM is about competitive threat especially at the ultra low cost side. For the most part, the other players out there had chosen ARM for even their low end baseband processor cores. So I don't think there is particularly new opportunity in Freescale for their ultra low cost and in fact, as far as I know at least a good portion of that is already ARM-based.
Gary Mobley - AG Edwards
Okay. And the backlog, overall was down 5% sequentially, what was the split between PD and PIPD?
Tim Score - Chief Financial Officer
The details Gary, so I am bored by reading them all out, but they are... its on page 20 of the slides. The composition at the end of Q2 is just under 50% in Processors and just under 30% in PIPD.
Gary Mobley - AG Edwards
Okay. And as far as royalty pairs go, you add a 4 in the quarter on a sequential basis; units were down roughly 10.5% sequentially. It seems though you guys were hit a bit more than overall industry trends, I know last year you had what a low single-digit sequential decline in Q2 in royalty units, so does make sense that the inventory correction might exasperated that, but 10.5% unit decline seems a bit high. Was there anything exceptional in that number?
Warren East - Chief Executive Officer
You know its in the release we tried to give some color on exactly what areas were hit more, I mean particularly, in Q1 what there is about 30 or 40 million left handsets, so even if you took that at a normal course for handset number, those are big chunk there right there. And actually because of the smart phone penetration, it didn't all come from the handset side. We did see some weakness in things that are typically attached to PC, so things like hard disk drives, and printers and there is just the general kind of post-Christmas season, consumer electronics things like portable audio players, portable media players and digital television. So it was actually, if you look at the individual applications that we did see reductions in from Q1 to Q2, it was quite well spread. But those were the key ones that we saw with that were hit the worse.
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