Question-and-Answer Session
Operator
(Operator instructions) Mike Walkley with Piper Jaffray, please go ahead with your question.
Mike Walkley – Piper Jaffray
Great, thank you. Maybe just start with changing your macro guidance, a couple of things, could you help us walk maybe through some of the regional changes and have you seen any mix shift from WCDMA back to GSM given some competitive pricing environment, and then also it just relates to your outlook, are you assuming that inventory stay at the same low levels in the next year or are you assuming somewhat of inventory recovery? Thank you.
Bill Keitel
Hi, Mike; Bill Keitel here. On the macro CDMA device market, so our midpoint estimate, we guided back in July was 565 million units for calendar year 2009, and our current midpoint estimate is approximately 523 million units. If you break that down, you will see on our Website, WCDMA Europe, we are estimating that to be down about 22 million from the 565 million midpoint breakdown, and then CDMA Japan, Korea, Southeast Asia, rest of the world combined to be down about 9 million. In both cases, those markets relate to what we are seeing a slower rebound and we have seen in prior recessions.
If you look at WCDMA Asia, down about 7 million units midpoint to midpoint. We think that’s a combination of 3G licenses and a bit slower ramp on 3G launches. For that WCDMA rest of the world, we are estimating that midpoint down about 9 million units. We think that’s more – the primary driver there is a little slow to market on the number of phone models and the price points is what we are expecting previously, but we see that coming along pretty well now. On the Americas, CDMA Americas, we increased our midpoint estimates there.
We think the primary driver behind our forecast there is just the operator of success and the consumer adoption of smartphones, and I think that about covers that. I would just also add, Mike, that we have incorporated all of these lessons learned as best as we can into our calendar year 2010 guidance and as you might imagine, our internal estimates came down from what we were previously working relative to the guidance we just gave here today. In terms of the inventory, correct, we are expecting the full calendar 2010 to be continued tightness as we have seen here over the last couple of quarters and as we are expecting here in the December quarter.
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