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Technology Stocks : Intel Corporation (INTC)
INTC 48.32-0.8%Jan 15 3:59 PM EST

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To: ptanner who wrote (171340)9/29/2002 1:17:45 PM
From: Dan3  Read Replies (1) of 186894
 
Re: Wouldn't this be a real trick since current gross margins are about 50%?

I should have used the term profit instead of margin.

I posted that their present gross margin (should have used the term profit), on a typical business desktop, is around $75 per PC, while Microsoft gets something like $250.

If they double their gross profit, per PC, to $150 (which is what they used to get when AMD was weak and Microsoft was getting about $150 per PC) they'd double their per PC profit.

Isn't it interesting that, as the ASP of a desktop has fallen drastically over the past couple of years, Microsoft's per PC revenue has increased?

Sorry for any confusion.
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