Question-and-Answer Session
Operator
Thank you ma’am. (Operator Instructions) Your first question comes from Doug Freedman - Broadpoint Am Tech.
Doug Freedman - Broadpoint Am Tech
If I could start off with I think the language we understand is seasonality. If you could understand where moderately fits in with seasonality on the top line guidance.
Derrick R. Meyer
Sure Doug. You know our view is that seasonal increases Q3 to Q4 average around 9% and are 6 or 7% on the low side. Given the big build we’ve seen of PCs in anticipation of the Win 7 launch, we’re really wanting to see the consumption side of that build happen in Q4 and therefore at this point we’re calling moderate which is a little bit less bullish than average seasonality I would say.
Doug Freedman - Broadpoint Am Tech
Can you talk a little bit about what probably are going to be the give and takes on the gross margin? And if you wouldn’t mind in the process of doing that, maybe rank for us sort of the gross margin contribution differences between GPU, notebook and desktop platforms, maybe lastly fit server in there. What our expectation and outlook should sort of be on the gross margin line and how are you guys going to balance say gross margins with possible share gains or potential opportunities for share gains.
Derrick R. Meyer
Sure. First clarifying point, your question about the product by product breakdown is directional, meaning Q2 to Q3?
Doug Freedman - Broadpoint Am Tech
More helpful, Q3 going into Q4.
Derrick R. Meyer
Well standing back, first of all the Q2 to Q3 improvement was driven by the three factors that we’ve been talking about and talked about on our last call. Number one was increased mix of 45 nanometer CPUs, number two factory utilization, number three ASPs. We certainly got the opportunity to drive forward looking improvement based on the first of those going from Q3 to Q4. We’re not done completely with the 45 nanometer transition on a sales up basis. As well, we’ll drive slightly higher utilization rates in Q4 as compared to Q3. ASPs of course are always a wild card, but we feel good about some of the new products that we introduced, both on the GPU side as well the CPU side with the new notebook programs that are hitting the market.
You asked also about how we think about gross margin playing off against market share. And you know there we’re going to approach the market the way we always have, which is to maximize margin dollar accumulation over the course of the quarter.
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