Question-and-Answer Session
Operator
Thank you, sir. (Operator instructions) Our first question is from the line of Charles John with Piper Jaffray. Please go ahead, sir.
Charles John – Piper Jaffray
Good morning, Jeffrey and welcome on board Will. Thanks for taking my question. I’ll start with one on the handsets. Jeffrey, in some of your previous commentary you had indicated exports would be down but domestic demand was still relatively okay. Would love to hear your thoughts if there’s been any changes in the domestic market demand and how you see 2009 shaping up?
Jeffrey Kang
Well, in general the Chinese domestic demand is still quite astonished in the near term. For example, in this fourth quarter, we didn’t see too much of the softness in terms of the demanding, no matter from the domestic or from international – international-wise.
So we just worry about if the global economic continually slowing down, so it might impact directly or indirectly to our end-market, but at this moment, we didn’t see that happen yet, but moving to the next year, even for the cell phone handset demand, so we’re still – we can still estimate the reasonably strong in the near term, and so we believe – even in – especially in a tough economy situation – usually the Chinese vendors were gaining marketing share from the global market by taking advantage of their pricing power and that the flexible – in terms of providing the service.
So that is why we are still optimistic about our handset business growth next year, especially – our growth not only bet on end-market growth. We are still significantly increasing our ASP, increasing our solution and products portfolios to offer to our existing customer.
So let’s do a very conservative estimation. Let’s assume next year – even with the whole end-market without any growth, but at Cogo, we believe we might still able to grow our own revenue because we can increase our ASP and increase our customer base to increase our revenue from our handset business.
Charles John – Piper Jaffray
So Jeffrey, just trying to understand the ASP comments a bit better. With the restructuring in China and hopefully the aggressive CDMA plan in 2009, I’m guessing it’s going to be mostly low-end 2G phones, so just curious where you – which parts of the handset to continue – actually see the ASPs rate increasing and how you expect to get that rise in ASP next quarter, or the next couple of quarters?
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