A: Please understand that we cannot provide any details because the negotiations are currently underway. The effect of future price corrections will be reflected in our performance beginning in January 2019. Note that the expected impact of these price changes, which are now being negotiated, is not reflected in our performance forecasts.
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A: Sales of products for new smartphone models grew sharply compared with the previous quarter. Earnings also improved partly due to an increase in productivity. Going forward we will develop the business by leveraging the product's advantage in high-frequency characteristics.
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A: Efforts to expand sales and improve productivity helped reduce losses from the previous quarter. We expect to continue to benefit from a favorable business environment in H2 and thereafter. We thus plan to increase sales by expanding production capacity. While capital investments and R&D will entail a certain cost increase, we will reduce losses by introducing the production know-how we have developed for many years and improving manufacturing process.
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A: There are bright prospects for automotive applications even in a relatively distant future. Our performance could level off temporarily in H2 due to seasonal factors. In the medium to long term, however, automotive electrification will likely generate increasing demand. That is why we will develop additional production capacity as planned. Sales for Chinese smartphones will depend on the customer situation. Demand for components, and large-capacity capacitors in particular, is expected to increase.
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