Question-and-Answer Session
Operator
(Operator instructions) Your first question comes from the line of Aaron Husock with Morgan Stanley.
Aaron Husock - Morgan Stanley
Thank you for taking my questions. A couple of things quickly, just to start, on the auto/mobile gross margin, should we see that kick back up some in Q1 as the mix gets a little bit richer post the holiday season and you've end-of-lifed some low margin products
Kevin Rauckman
I think in general, yes. Our expectations are that over-all ASP should come up slightly because we had some very low price points, as we end the life on the C330, during the holiday season. So in general, yes. From a trend basis, Q1 should be slightly above what Q4 was on PND margins. Yes.
Aaron Husock - Morgan Stanley
Could we see that get back above 40%, especially as you take out some NAND cost? Would that transition tip?
Kevin Rauckman
It's likely that we could get that high, yes.
Aaron Husock - Morgan Stanley
Okay, great. Can you address the European PND market? There has been a lot of concern about slowing and signs of saturation there. Can you tell us what you are seeing over all?
Clifton Pemble
Yeah, I think - Aaron, this is Cliff - I think that projections for 2008 have ranged anywhere from 35% to, probably, in the 40% range, which is kind of our expectation at this moment as well. That does obviously represent a slowing of the growth that we have seen in Europe. The quantity and the market is very large and we see ourselves as taking an increase in share in Europe, as well.
Aaron Husock - Morgan Stanley
Okay, great. And then just, can you elaborate a little bit more on the feedback you got at 3GSM on the nüvifone. I am assuming, just from your comment today, that you haven’t actually signed any carriers yet. Do you feel that you are actually close? I mean, could we expect something signed within the month?
Clifton Pemble
Well, we are not really prepared to give timelines of when we will announce that particular signing. There is a lot of activity going on. As we mentioned, the response at the show was quite positive, in fact, overwhelmingly so for us. So, we feel that we have a strong product concept, there is a lot of interest from carriers in the industry, and we are just moving forward with our plan.
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