Advanced Micro Devices - Moderated (AMD) Message Board

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Technology Stocks : Advanced Micro Devices - Moderated (AMD)

AMD 233.54

-1.8%

Nov 7 9:30 AM EST

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To: Tenchusatsu who wrote (40479)	5/18/2001 8:56:39 PM
From: Jim McMannis	Read Replies (2) of 275872

RE:"$30 would be less than the marginal cost to make one CPU. I don't think that's the case, or else Intel would be losing money." To figure actual cost you have to know exactly what expenses Intel is figuring in. I do not. I gather my information based on die size, die per wafer, yield and cost of wafer, testing loss and charges. Most of this I have gleaned from articles and off this BB from the likes of Elmer and processists like Yousef. I recall Elmer saying th cost of a P3 Coppermine would be less than $30 by the time MS started shipping to Microsofts builder. When Intel made the deal with Microsoft, they had to project costs out a year and a half. A lot can change in a year and a half...sometimes costs can go down, most surprises are on the upside. The X-box will sell for $299 retail with a pretty fancy graphics engine. I don't think there is any way that MS could have the X-box retail for $299 and be paying much more than $30 a chip. Shoot, they are throwing in a DVD drive and a 8.4 gig HD... Those three items are likely $80 to $100 bucks right there. 30 chip -30 HD -20 DVD...maybe more. Then there is the motherboard...maybe 30-50 for that if you add in the graphics engine. Then you have case, PS, RAM, console. Maybe $150 plus in parts...not counting assembly, packaging and testing. Not much left of expensive Intel ships...considering the chip that runs a playstation 2 probably costs what? $10-$20? Jim

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