It seems as though more aggressive pricing is not spurring much of an increase in demand, resulting in a trade-off between profitability and revenue growth.

We believe PC demand in the last two weeks of December was terrible, leading to lower expectations for 2001.

We believe that since Intel's pre-announcement in early December that consumer and commercial demand has continued to get worse with commercial showing the most disturbing trends. In addition, we believe that servers, which had actually been on track for part of the quarter, saw some softening that we believe is related to corporate IT budget stretch outs.

Compaq walked away from PC market share when pricing was irrational.

This is obviously not something I can do every day. But lately there is such a strong demand for it, I have to say yes sometimes.

For those who thought the price war was aggressive, you haven't seen anything yet.