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Technology Stocks : Intel Corporation (INTC)
INTC 48.24-1.0%10:34 AM EST

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To: Paul Engel who wrote (156196)1/18/2002 4:08:47 PM
From: Mary Cluney  Read Replies (2) of 186894
 
Paul,<<<Is this $500,000,000 revenue to Intel for McKinley CPUs or $500,000,000 in SEVERS for server manufacturers?>>>

Get real, Engel. You've been spending too much time with Dan3 and Pete Gerassi.

McKinley will be replacing high end Alpha Servers that can cost more than $10M each. That comes out to about 50 servers to generate $500,000,000 in server sales.

Dell alone should spend that much on servers to get themselves an adquate order entry/ERP system.

According to Pete Gerassi, chip costs are about 2% of server costs. On that basis, with McKinley chips costing around $2500, $500,000,000.00 in server sales would require about 4,000 chips. Does that mean Intel would have to allocate 1 day of production at some Fab for Mckinley manufacture?

Yeah, I would say they mean $500,000,000.00 in chip sales.

Mary
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