Question-and-Answer Session
Operator
(Operator Instructions). Your first question comes from the line of Mark Sue of RBC Capital Markets.
Mark Sue
Thank you. The PND unit growth was less than those expected while ASPs were better. Maybe if you could help us understand the balance you are trying to strike between unit growth in ASP discipline and perhaps your assumptions of price elasticity in terms of -- relative to this economic climate that we are in?
Kevin Rauckman
Well, I think we have commented on the fact that the price decline went from 35% in Q1 to essentially 25% a year-over-year decline in Q2. We expect that to continue to come down as we go through the end of the year. It's likely that as we go through the Holiday season we could say ASP decline as well as 20% on a year-over-year basis. So from a striking a balance, I think that's always the challenge you is ot whether the appropriate price in order to generate incremental or elasticity of demand, the good thing that we see is that we did gain share during the period where the pricing was little bit more favorable. As we go through the year we still expect the unit demand to be – at market growth if not above through the rest of the year.
Mark Sue
Okay, that’s helpful. And then on the nuvifone, any thoughts on what's creating the delay, is it anything related to production or future sets that you might need to add or is it mostly price negotiations or is it the carrier that’s taking its time?
Cliff Pemble
I think the delays are really to try to accommodate carrier specific requirement which as you know are different than open market requirements, so that’s what we are working on right now.
Mark Sue
And any thoughts on what we should be assuming for nuvifone units in 2009, a range possibly?
Cliff Pemble
I think at this time probably I don’t have any guidance for you.
Mark Sue
Okay. And then just lastly Outdoor/Fitness, maybe if you could just talk about the sustainability of the strength that you are seeing there with the Colorado and also the Forerunner products?
Kevin Rauckman
Well I think, Outdoor/Fitness is what we call one of our mature markets. It’s a core market, very good segment that it does have much smaller base and probably limited growth potential. We do think the new products are driving the growth and causing people to embrace our products. And also there could be some factor that with the current fuel prices and the economic condition, people are looking for more green activities to do and Outdoor/Fitness is definitely one of those.
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