Formerly About Advanced Micro Devices Message Board

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Politics : Formerly About Advanced Micro Devices

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To: Joe NYC who wrote (94311)	2/20/2000 12:47:00 PM
From: Charles R	of 1576135

Joe, <The question is: could AMD sell Spitfire manufactured on .18u process for $35 and still make money? Maybe at $50 they could, but $35 seems tough.> By the time X-box gets to market (IF it ever does) AMD would be at 0.13 or worst case 0.15 (Q3 this year). Athlon core on that processor would have be less than 100 mm2 and be fairly low powered to go into a cheap package. With those assumptions making incremental profits at $35 is not a problem. Embedded processors get sold well under $35 routinely - no big deal. However this kind of business would contribute very little toward fixed costs - the key to making real money is to ship lots of product at higher ASPs into the mainstream PC space. Chuck

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