Peter,<<<Take the other tack. You claim that 25% of the $60B is CPU chips. That is $6.25 billion a quarter. Intel has what, 80% of this by your estimation, or $5 billion a quarter. That means that $0.5 billion supplies all of the PC market, the notebook market, all chipsets including those on both PCs and servers, and all other IAG products. That is an ASP of below $20 per chip for an Intel CPU. Far below than any Intel claims.>>>
First you start with a mixture of false assumptions and then you draw conclusions that fit your agenda and hope that people get tired of trying to unravel your false assumptions.
To start with, the basis of our discussions concerns the industry report of 4 million servers from factory invoices that constitute a $60B server market growing at an estimated 15% per year. You can buy the IDC report for $2500 and argue with them on how they came up with those numbers.
Further, no matter how you try to explain it away, much of your argument (and you keep coming back to it) is based on how you and your brother defines a server. You can define a server any way you and your brother want to, but it has nothing to do with our discussion. If you can't understand that, it would be very difficult for you to understand more complex issues.
When we give you an example of a $1000 server (we provided 3 examples in three price ranges) from the DELL website and provided a break down where DELL charges $400 for the processor, we are not mixing apples with oranges. We know that Dell marks up processor to cover costs and to make a profit, but how much they mark up is a separate issue. For some bizarre reason, you came back in a previous post and gave us an example where the OEM marked up a Micron product by 2200%.
I stand by my estimate that the cpu/mpu component cost within a server as defined by IDC on average is a lot closer to 25% than your 2% or .2%.
Mary |
