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Tim Mahon

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One of the above events alone probably wouldn't have caused such a knee-jerk reaction in the device world. However, the combination of all has placed a major strain on component inventory levels at several OEM and contract manufacturers.

Inventories still need to be worked off and demand that was highly anticipated in the final months of the year has just not appeared at the levels that people were expecting. It's a kind of steamrolling effect.

Everyone thought Windows millennium would be the driver and it just hasn't happened. There is no reason on corporate side to go out and do upgrades and there is no reason at home to dress up or replace a computer that surfs the 'Net just fine the way it is.

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