We're talking about inventory that would have shipped in the last month and would have appeared in PCs shipping around Thanksgiving, ... You're running smack into the holiday shopping season.

People in the industry don't want to believe it, and most of the executives are still talking about the higher growth rate.

Until then, we're dealing with smoke and mirrors, ... We're looking at an industry decline in capacity of 20 percent [in October]. What you've got right now is propaganda from companies saying that everything is okay.

There is a need for more horsepower machines, and we have seen retail data showing that consumers have been seeing that too. They are beginning to buy higher and higher performance processors.

If you were constrained by manufacturing capacity, you would focus on selling the lower-end Pentium III, which is almost a drop-in replacement for the higher-end Celerons, but more profitable.

If you were constrained by manufacturing capacity, you would focus on selling the lower-end Pentium III, which is almost a drop-in replacement for the higher-end Celerons, but more profitable,