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Technology Stocks : Intel Corporation (INTC)
INTC 34.72-2.3%3:59 PM EST
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To: Joey Smith who wrote (43448)1/2/1998 12:13:00 AM
From: Joe NYC  Read Replies (1) of 186894
 
Joey,

Paul, what's you guess on gross margins for these systems? I'm estimating 65%: $45 to make the chip and they're probably selling them to Compaq for $100....am i close??

I think it costs somewhat less to make them and Compaq pays $60 to $70 for them.

It is an ok profit margin, but it is far less then what Intel expects. For every 2 of these $65 CPUs they sell, they lose a customer for a $300 CPU.

Joe
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