Hi Mary, RE: "Further, I contend (my WAG) that the CPU cost of these systems shipped is closer to 25% "
Est 30B to 40B in eventual Server chips from an old post:
Future Server estimates:
C P|.....X....IBM ---> Service
O E|..............
S R|....XXX....Sun
T F|100B est rev. market size hw; 30-40B est chips
. O|..............
. R|...XXXX..Intel
. M.<---------------> Volume shipments
It's speculated in articles Intel's server market was 2-3B of the 30-40B and 30%-50% of units (reminder: this is an old post). Translated, there's a large opportunity to capture more of the 30-40B pie.
( In the non-Server area, there were reports estimating around $150B hw revenue, with 30-35B MPU, 25B Intel, 7B of 25B profits. Maybe 110M PC unit shipments, possibly 85M Intel. )
In summary, if 7B is Intel's profit, when considering the server market, imagine the impact of higher margined product lines on some part of $30-40B with respect to profit growth.
The numbers are loose, but certainly the potential impact of higher margined products is clear, particularly when you look at Intel's current profit levels.
Regards,
Amy J |
