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Technology Stocks : Intel Corporation (INTC)
INTC 36.08-3.2%Dec 17 3:59 PM EST

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To: John F. Dowd who wrote (160323)2/26/2002 6:07:37 PM
From: AK2004  Read Replies (1) of 186894
 
John
ok, care to read what you just wrote?

let me try it again, fixed cost does not really mean that it is fixed - it means that it is independent of unit shipments. Each time you build a fab or develop a chip you add to this magical fixed cost. Intel is bringing new fabs online and that adds to fixed cost which in turn should be written off with chip sales.
Now, if the number of chips that you ship out is in the same ballpark as now and I hope you are not expecting intel to ship at the rate of 300 - 500 million chips per year in the very nearest future your cost per chip went up not down.
Intel is a powerful company but with the rate they are going they would need more people with your blind faith
Regards
-Albert
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