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Technology Stocks : AMD, ARMH, INTC, NVDA
AMD 240.55-2.5%3:59 PM EST
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To: gzubeck who wrote (16113)6/2/2016 2:01:48 PM
From: rzborusaRead Replies (2) of 72398
 
if amd makes 30% margin and nvidia makes 60% on average who winning the economic battle here even with 50% more available dies?
For the sake of argument, you have 150 candidates per wafer. Twenty defects wipe out 19 die=131 good Die
The opponent has 100 candidates per wafer. Twenty defects wipe out 18 die=82 good Die
131/82=1.6. That is a great manufacturing advantage.
Do you want to:
A) run fewer wafers and sell at a higher price, or
B) run more wafers at a lower price and take market share and make the same money.

One way hurts you competitor, because he is in a position that makes it nearly impossible to respond by cutting price. Because he may already be losing volume. Most fan site discussions have at least one ~ "competition will give us better products".

Jerry Sanders "volume is the vaccine" was hindered back in the K7 days because of Loyalty Rebates in part. But Volume is power. These are $200 + boards. That is not free, cheap, maybe, but not free. File under make hay when the sun shines.
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