Though my conversation with these individuals did not delve into how it would impact their future eventpricing, the evidence from the highest-profile events is that we should not be surprised if at least a portion of these higher expenses are passed along to consumers.
While our base case scenario envisions pricing declines to level off due to the growth of the smartphone segment that should offset the downward pricing pressures, we assess the downside risk here in the event that the current rate of pricing declines continue into the future.