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Technology Stocks : Advanced Micro Devices - Moderated (AMD)
AMD 217.91+0.9%Dec 5 9:30 AM EST
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To: Tony Viola who wrote (75354)3/22/2002 4:23:17 PM
From: AK2004Read Replies (1) of 275872
 
Tony
re: i
that was a misspelling and no insult was intended
re: but its yields are much less, then they wouldn't be the low cost producer.
you're completely wrong about that.
1) The bottom line is (cash inflow - cash outflow) / number of shares
2) assuming that number of shares and demand do not vary much, one can look at ( cash inflow - cash outflow ) per individual chip
Yields define how many chips are made per wafer. But your total cost is a single number and your number of chips is also a single number. Cost then can be normalized with respect to number of chips or profit per share
One should never confuse micro with macro optimization. Many do and that usually leads to very undesirable results

BTW where did you get information about intel's or amd's yields
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