My question is on the commentary that the pipeline inventory replenishment will be a driver for slightly higher than seasonal Q2. Can you put some perspective on that? It seems like you normally have new products in Q2, and you normally have strength in Q3. Is the current inventory level lean, or how should we view that inventory replenishment comment?
Stacy Smith - Chief Financial Officer, Executive Vice President
I think inventory levels generally are lean everywhere we look. We saw an inventory burn in the broader pipeline in Q1. And our inventory levels are down more than I expected when I started the quarter, and down pretty significantly. So I think inventory levels are lean.
And I also want to put it in perspective. You’re talking a minor difference. Being up 3% quarter on quarter is kind of well within Q1 the Q2 seasonality. I don’t think there’s any one big driver there. I think we’ll see people putting in place some Haswell based systems in anticipation of the second half selling season, just as they burned inventory on some of the older generation systems in the first quarter.
[OEMs have reduced their inventory of older products and will be replenishing them with Haswell. This means Intel will incur lots of revenue from Haswell this quarter]