That wasn't the only poor decision-making they were doing while Craig Barrett was CEO at that time. They also doubled down on the Itanic processor, refused to make a 64-bit x86 CPU until AMD forced them to, and were pushing mega-expensive RAMBUS memory with their power-guzzling P4 processor. Nearly everything they were doing was a bad decision. If anything, it's a case study in why engineers should not be CEOs. (Barrett was an engineer; he was replaced by Otellini who was not, and who turned things around for Intel.)