is because they diverted production from Celeron to PII, as they were all sold out.
AMD will have a tough time going forward trying to sell their chips, because 1. The retail selling season is over and retail demand will be low 2. Celeron systems are cheaper than AMD systems at the same Mhz.
Should AMD go to 35, it would be preferable to sell AMD
In any case I will listen to what AMD says after they report earnings this Q.
Intel CFO Andy Bryant said. "We left the quarter with unfulfilled demand. We are still struggling to get ourselves to a point where we are comfortable going into the next quarter."
That unexpected demand did two things. It boosted Intel's gross margins to 58%, three percentage points higher than what the company preannounced in November and six points above the third quarter's margin. But it may also have given archrival Advanced Micro Devices (AMD:NYSE) an unexpected advantage in the low-cost PC sector.
In the third quarter, Intel lost its lead in the U.S. retail desktop market to AMD, thanks to AMD's control of the low end. Paul Otellini, general manager of Intel's Architecture Business Group, said he is determined to reverse that trend. "If we don't have more success in the U.S. retail in the next six months than in the last six months, I will be very disappointed," he said.