maybe looking out into

maybe looking out into

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And then finally, can you talk a little bit more about the penetration into mainstream front. You gave us an example with the $200 handset in China. What will it take to really increase that on your part? Is that a lower cost part or is it really just being driven by demand from customers?

It really is both at the end of the day, right. It's the high-end of volume, typically the costs come down and the price come down. The prices doesn't come down by itself. So cost and price will track each other and that's why the gross margin is still pretty healthy.

I think the other thing to point at it is, we don't just have one chip, as we're trying to put out, we have a number of different chips and they serve different segments of the market. One type are for high-end featured rich sort of a phone, accessory with battery such as Compaq 100680-001 Battery, Compaq PP2060 Battery, Compaq Presario 1400 Battery, Compaq Presario R3158 Battery, Compaq Presario 1700 Battery, Compaq Armada E500 Battery, Compaq EVO N100 battery, Compaq Evo N1020V battery, Compaq Evo N1000C battery, Compaq Evo N115 battery, HP Compaq nc6220 Ac Adapter, HP Pavilion dv1207us Ac Adapter, switch sort of a phone, and we have others which are suited and targeted for the mid-range. So we took both segments to the market.

I guess, my first question, maybe, I'll just follow-up similar track from last two guy here, maybe focusing on the first quarter thoughts here, product revenue is expected to be flat up. Can you give us a sense to your confidence in that, I mean, clearly, I guess it makes sense to some transitions here, but can you just relay your confidence in that? Is this coming from a small segment of your customer base? Is it purely mobile or do you expect any sort of unusual trends in CE as an example.

Well, I think as we mentioned CE, we do see lot of activity going on and we're pretty confident about the uptick in the CE starting from Q1. It's applicable over multi customers, that's not one customer, that's a lot of the Tier 1 TV manufacturers.

I guess, maybe on some more directly here, so it seems pretty clear based in your commentary that mobiles that you're expecting to be up in the first quarter. Is CE expected to be seasonally better as well or it's just purely mobile dynamic in the first quarter?

No. I think what I'd like to say specifically for Q1 is that CE will be higher than what the run rates that we've been saying in the past. That is the primary driver in Q1.

MHL into China, I guess more so on the phone side, but maybe more generally speaking if you'd like to. Can you give us a sense of how much of MHLs in the third quarter was from China and where do you expect that to go, maybe looking out into next year sometime?

You can go to our metrics page, where we highlighted the mix, but our China business has grown to over $23 million overall, and a good chunk of that growth has been around the mobile space. And we expect that to continue to grow, going forward. I mean, I think Camillo highlighted the number, the players that we have involved there, whether it's ZTE, Huawei and Xiaomi, those players are actually showing a lot of positive traction with the design wins we have in place. So we're expecting to see a lot of growth in the China market.

I guess, it's probably little bit too early to tell you Richard, but I think one thing can say, if you look at the China portion, and look at just the China total dollar revenue, the percentage of mobile within that number is dramatically increasing. I mean to a point where next year, it could be more than 70%, 80% of the China revenue, the mobile specifically. Now, that's how dramatic it is.

Maybe two last quick questions for me, I'll jump out of line. The competition for MHL discrete Parade announced the product several backs here. What impact do you expect them to have on your share? Where in the market do you expect them to be, any thoughts on them and potentially any other entrance?

I think if you've been tracking the MHL adopter list for the last year, you'll notice that there are a number of companies that joined in the last 12 to 18 months. And I think, I don't know exactly when, but for Parade I think what you've mentioned, they were one of those companies. It's an example of one of those companies that joined some times ago.