Formerly About Advanced Micro Devices Message Board

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Politics : Formerly About Advanced Micro Devices

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To: kash johal who wrote (85840)	1/7/2000 4:05:00 PM
From: Greater Fool	Read Replies (1) of 1572583

>>Not too many folks have deep sub-micron capable fabs mothballed They don't have to be mothballed for conversion to be a viable alternative. >>The INCREMENTAL production cost of a celeron or a K6-2 are in the $25-30 range I thought Elmer just said the production cost for Celeron was $30. Come to think of it, that may in fact be the variable cost. That would make sense, placing the full cost at somewhere around $50-$75. Kind of hard to make attractive profits at a full cost like that, no? Especially when the ASPs in that general segment are $75 at best. >>Because they can play the incemental cost game as they have HIGH END cpu's providing tremendous cash flow to carry the overhead - its called SEGMENTATION Unfortunately for Intel, the Athlon will be encroaching on all the highly profitable higher end CPU lines. I wonder what Intel will be able to do to prevent this.

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