Recent weeks have seen a 25-30% drop in the Chinese stock markets. Perhaps this pain will negatively affect smartphone sales in China. China is in the midst of a 3G to 4G upgrade cycle. If enough people feel the pain of wealth destruction due to stock market declines, will it delay sales of smartphone sales to Chinese consumers? This idea could very well be the reason for SWKS’s recent stock price decline. If enough people delay purchasing phones in China then it could affect SWKS in the current quarter (ending 9/30) but I would expect last quarter (ending 6/30) to be unaffected. I would also think that any reduced sales in China would merely be a delay as consumers will eventually upgrade.