They are ramping in third quarter. They will ramp again in the fourth quarter. We see that ramping sustained. And even when we’ve done a phase, we’re not done because, as Jeff just noted, we’re in the third phase of a rollout at our visionary European retailer, and that’s still simply on loss prevention and self-checkout. There are other opportunities with that retailer, with other retailers, other use cases. And we see the same thing with all of our large scale enterprise deployments as they start deploying RAIN RFID. See the benefits of transforming their enterprises, they come up with additional opportunities and use cases. And our job as Impinj is to ensure those customers are wildly successful in their deployments. And that is our focus because if they are wildly successful, then we’ll be wildly successful with them and we’re going to make sure they’re successful.
Mark Lipacis: Got you, very helpful. Thank you.
Chris Diorio: Okay, thanks Mark.
Operator: The next question comes from Scott Searle with ROTH MKM. Please go ahead.
Scott Searle: Hey, good afternoon. Thanks for taking my questions. Maybe to follow-up on some of the earlier comments, I’m trying to understand what a normalized level of endpoint IC demand looks like today, it looks like it’s probably in that $60 million range or so. And then you’ve got other systems deployments that are ongoing, the European retailer, U.S. logistics provider, et cetera. So, I guess I’m having two questions. What is the real normalized level of that IC demand that we’re starting today? And then as we get into the beginning of next year and some of these other projects start to ramp up, what does non-retail apparel look like in terms of your mix? I think Avery Dennison was pretty upbeat yesterday about the non-retail apparel mix growing at a 50% plus clip. I am wondering if you could provide us with some idea of what you think your mix looks like and the growth rate looks like there.
Cary Baker: Yes. So, first question Scott, this is Cary. Thank you. I would highlight the transition from Q2 to Q3 on the endpoint. IC growth has a couple factors that are impacting what is the real demand in that. First, as I mentioned before, we shipped several hundred of those high ASP M775 authentication ICS in Q2. That was seeding an opportunity before the commercial launches. So, we won’t see that level of volume immediately following in 3. We’ll wait to see – the rebound in the volume until those products are actually pulled through by the commercial launches. So that comes down. We also see – we also see on the IC safety stock pulling that down it’s about a month right now, we are trying to pull it down by two to three weeks.
So, that’s masking real demand in the quarter. What’s offsetting that or partially is the ramps of the big projects. And think of that as logistics, think of that as general merchandise. The logistics is much bigger than – the ramp of logistics is much bigger than general merchandise right now. Last year the industry shipped 34 billion units in total. We won’t know what the industry ships this year until early part of Q1, but as Impinj sits right now, we’re modeling greater than 25% endpoint IC unit growth on a year-over-year basis.
Scott Searle: And Cary then, just to follow-up, is there – exiting this year, given the ramp of customers into general merchandise and logistics – does that start to get the 50% of the mix at this point in time, once we get back to normalized levels? Then one other, just on the pricing front, typically you have pricing negotiations going into the – from the fourth quarter into the first quarter. That hasn’t happened in the last couple of years because of wafer availability issues. Does that return as we go into 2024? Thanks.
