And again, I’d say, looking ahead, we expect to stay within our long-term gross margin forecast of 55% million to 58% as our cost structure today is more variable in nature than the past. Also, our factories, if you think about it, become more efficient when they run at normal utilizations and we have a disciplined inventory approach with their channels. So we’re going to stay with that range. We’re not revising it, but we feel very good about our gross margin performance.
Operator: Our next question comes from Ross Seymore with Deutsche Bank. Your line is open.
Ross Seymore: Hi, guys. Thanks for letting me ask the question. Kurt, I want to go back to your core Automotive and, I guess, Core Industrial business, not the consumer IoT side. I believe you said the demand was largely holding in well there, except for some of the channel dynamics in China. I guess overall, is that true? Is the core industrial especially holding in? And how do you delineate between the channel weakening and isolating that to a variable other than demand? Obviously, you can see this is coming out of China, and we know the COVID policy. But to the extent it’s weakening, people aren’t really going to care if the source is coming from this is having too much inventory or OEM slowly demand. Either way, it’s kind of slowing even though the latter could by some sort of a temporary aspect. So any sort of color you could give on your core demand would be helpful?
Kurt Sievers: Yes. Thanks, Ross. It is actually easier to speak to this in Automotive because we have a much larger portion of direct customers where we can also triangulate with the demand from the OEMs, from the end customers. And we have these discussions actually with all three parties on the table. So we cannot be misled by inventory builds or anything from the Tier 1s because we really cleaned this out now all the way to the OEMs. And I think what I said to Chris earlier about the optimism on the Auto business through the year is the answer to your question. So there is a short-term disturbance in China, but that’s really more about the distributors than anything else when it comes to Automotive. In Core Industrial, Ross, it is indeed harder to be that specific because the majority of our business goes through the channel.
So it is much harder to say from the perspective of what do we know from end customers really, which is also why into Q1, I’d say also Core Industrial probably drops sequentially. But again, it is very hard to decompose this from the China situation. So it could just be because of this particular China situation since we have such a high exposure in Industrial – also in Core Industrial to China. I can, however, tell you that the direct accounts in the Core Industrial business, but they are a minor portion of our business. They are holding up quite well. So for that reason, you could say there is some data points, which would tell us that also Core Industrial is robust. But I have – it’s less certain given the channel exposure, which we have in that segment.
Now from a content increase perspective from – if you think more from a macro perspective, what these applications are doing in critical infrastructure in driving efficiency of industrial customers, I think there is any reason to believe that we should also for Core Industrial continue to be optimistic for the year. Finally, what I said about pricing earlier, pricing for Automotive holds true also for Core Industrial. Similar technologies, similar continued pressure on supply, which is very different, obviously, to the Consumer and Mobile businesses.
