Formerly About Applied Materials Message Board

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Politics : Formerly About Applied Materials

AMAT 322.51

+6.1%

Feb 6 9:30 AM EST

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To: Cary Salsberg who wrote (46824)	5/16/2001 11:13:44 AM
From: w0z	Read Replies (1) of 70976

Since INTC is exceeding AMD in spending on other companies' products, not necessarily internal R &D, the advantage gained is in time. You're comparing apples and oranges Cary. Capital spending is completely different than R&D spending. One comes from the balance sheet (capital budget) and the other comes from the P&L (R&D expense). Capital only affects the P&L by the amount of depreciation added. I'm not bothering to look up Intel's R&D budget versus AMD's, but I would wager it exceeds AMD's by octaves. EDIT: Intel's projected R&D budget is $4.2B for 2001. AMD's was 157M for most recent quarter so assume $700M for 2001. Time to market is a key advantage because it allows you to establish yourself as the market leader. As Katherine stated, better manufacturing technology gives Intel availability (time to market), cost and performance advantages.

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