that often power other commodities like PC in industries that are consolidating. In other words, DELL, GTW, CPQ and HWP have no need to use INTC chips. They must be price competitive and everybody except a select few has no need for tons of speed. AMD chips will do just fine. Hence, INTC must slash their prices to keep unit volumes, but this pressures revenues. The heydey is over.
At my academic insitution, PC budgets have been scaled back. It is not an automatic to request and get an upgrade anymore. Virtually every academic I know says they don't need an upgrade (and if they do it is to get more memory or storage). Processing speed is not an issue.
New applications will be fiercely competitive and the Intel "branding" efforts will fail.
This recession is going to last a while. Just look at trucking demand, cell phone demand, carpet demand, office furniture demand, telecom demand, etc...! They all suck and will continue to suck for sometime. People are glutted with "stuff" and there is no need to buy more.