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Technology Stocks : Intel Corporation (INTC)

INTC 47.43

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1:49 PM EST

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To: ed who wrote (52511)	4/9/1998 2:14:00 AM
From: Paul Engel	Read Replies (1) of 186894

ed - Re: " Let's add up 30% per unit for employee salary and operation cost, and 30% per unit for fab depreciation cost, the total cost per unit will be around $50 per CPU" Wake up time! AMD sold 1.5 million K6's for 169 million. They LOST $89 million last quarter. Assuming the losses were all due to the K6, their actual cost per K6 chip was (169 million +89 million)/1.5 million = $172/K6. That was their cost last quarter. Last quarter they "supposedly" solved their yield problems. Your $50 is so far off the mark it's almost funny! Paul

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