This is very much a good sign for holiday PC sales. |
This should put to sleep any bears on Intel who thought PC demand was weak. |
This year, Intel is being affected by an ever-aggressive AMD, a roadmap that continues to have glitches and, most importantly, a slowdown in the PC food chain that has started to show signs of exhaustion after 14 months of robust growth. |
We strongly believe this isn't the worst it can get. |
We're picking up noticeable inventory build in the food chain for Intel. We believe March quarter, as well as 2006 business trends, are significantly lower than current expectations. |
When companies cut prices, it always hurts the whole environment. But you have to work through inventory. Intel doesn't want to take a charge to write it off. |
You've got this supply issue and people want to see how they execute through the [current] quarter. |