I'm just drawing together my own market observations that I would like to share. Just my 2 cents. I sense a lot of excitement and high expectation from people's response on the next Mac Pro. Although, I think the majority of people are going to be real upset after learning about further delays and the price for the next MP. IMHO, I expect the next MP to come 2H 2009 and base config will be 10-15% more than the base price of the current MP and expect 15-20% increase on the higher end models ie > 3.0GHz. Here's why I think and mainly has to do with the Global Economy / Financial Crisis. (Yeah...those dreaded words we keep hearing about.) First, looking at Intel's Q4 '08 earnings report, their Revenue and Net Income has dropped significantly YoY and Gross margin was lower vs Q3 '08. They say GM lower due to primarily (1) higher factory underutilisation charges and (2) higher inventory write-offs. This is a good indication of Cost of Sales from overseas factories ie. Israel, China, Malaysia etc. are high and also no mention about Currency fluctuation against the USD ie MYR vs USD in the past year effectively increasing the cost per chip. Then Higher inventory due to slow global sales. Higher inventory is not only a key factor for Intel, but for pc/notebook vendors ie Dell, IBM and also Apple. Lets not forget the boutique vendors and HW wholesellers / retail. What I mean by "factor" is these vendor will continue to clear out as much inventory as possible before investing on new chipsets and next gen CPUs. We should expect to see more of the same technology for the next while as consumer spending tightens. Thus expect delays. Secondly, investing. Current uncertainty in global economic conditions and tightening of credit market makes it particularly difficult to get financing. PC/Notebook makers will have great difficulty in getting financing to for new investments ie. new chipset / and new line of CPUs. This will heavily impact on rolling out new products to the market and impacting Intel (already evident in their earnings report regarding slow global sales). If no/limited financing is available, then they need to get financing from their own Cash Flows which may be tough for some companies needing to pay off dividends or debt. Third, supply and demand. This surplus already has Intel writing-off their inventory. I haven't looked at Dell's or IBM's financials and Apple's earnings come out next week, but I'm sure it carries the same kind of tone. How is this going to affect the next gen CPUs / chipset? Produce less. Producing less chips with the same running cost means higher unit cost per chip. From Intel's earnings report "Gross Margin: The percentage is expected to decline to the low 40s primarily due to higher underutilization charges and 32nm start-up costs. Gross margin is subject to changes in demand levels and pricing that could impact inventory write-offs, mix and unit costs, and potentially create several additional points of margin variability". As you can see mentioned the 32nm i7 CPU. Either they have already started manufacturing or the manufacturing process has slowed either from (1) cost cutting measures (2) low demand (3) delays from financing for start up costs. We just don't know but I can safely assume that there will be delays. Oh, regarding their actions to mitigate declining Gross Margins, simply put...increase price and cut costs. So is the next MP really going to come in 2H 2009 (Late 2009 Mac Pro ) and priced 10-20% higher than current MP? IMHO yes and yes. The delays and price are justified from what I said above but I also fail to mention the cost for the Buffered 1333MHz ECC DDR3 RAM the next MP needs. If Intel is going to moderate supplies to meet low market demands for Nehalem, we can safely assume RAM makers will meet that as well. The control of demand will be higher and supplies will be limited thus the RAM prices should increase from where they are today. RAM prices are historically cheap today perhaps from over supply and clearing of inventory but it won't be long until prices go up again. So now the question is how Apply will maintain a good profit margin on the next MP without burning a hole through our wallets? It will be quite tough to keep it at the current pricing levels though and the global economy / financial crisis is here to stay for quite a long while. Thanks.