The first quarter of the year is always seasonally slower, so there's no real surprise there. Adding to that, Intel [offered] some really good deals on chips in the fourth quarter, so computer makers bought more than they needed and stocked up -- and they're working through that inventory. At the same time you've got AMD taking some share away.

We think the industry is going to be slower in the first quarter, if not the first half, than we originally planned. There's clearly downward momentum right now caused by higher interest rates, higher fuel prices. Probably the biggest factor is consumer confidence drop in December. The industry operates on momentum and we think it will take time for that momentum to turn around.

Intel sees no signs of a pickup and would not call this quarter the bottom for revenues. We do not think the bottom will be reached until the summer, at the earliest, and remain cautious on the stock.

That's been our trademark all year long. It's not always in the first quarter or in the first half, but usually by the fourth we've been able to turn things in our favor.

It might add a little urgency to efforts that are already under way.

The P-III is an evolutionary advance, not a revolutionary one.