Dale, >The question is, as server profits plunge to the point where they can no longer offset the losses in the non-processor business units at Intel, will the slim profits of the desktop processor unit be sufficient to offset the remaining losses in these units?
I don't know what you guys are talking about.
The high majority of Intel servers that were sold in the last two or three years were one and two ways that ran on PIIIs. Not even PIII Xeons, but PIIIs. Check the 1U, 2U, 3U servers at Dell, Compaq, etc., if you don't believe me. The 4-ways and 8-ways run on big cache Xeons, which were not cost reduced lately one cent. Now, the PIIIs, in the high majority of Intel based servers, are going over to PIII Tualatins and Foster Xeons, which, if anything, are higher priced than the PIIIs were. So, if anything, Intel's server chip prices will be higher than they were a month or two ago. Admittedly, in the heyday of servers and high priced PIIIs over a year ago, PIII prices were higher than now, but they didn't come down because of any server thing.
Tony |
