SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Politics : Formerly About Advanced Micro Devices
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Scumbria who wrote (34382)7/14/1998 3:07:00 PM
From: Petz  Read Replies (3) of 1576167
 
Scumbria, re:<With good yields, it ought to cost AMD well under $50 to manufacture a K6 on .25u>

Intel average selling price is something like $180 and their gross margin is 50%, so it costs Intel $90 to make a CPU. Clearly the key to AMD profitability is
1. Increasing volume, since this is basically a fixed cost business
2. Narrowing the speed grades

Item 1 is a given, since over half of 2Q production was on 0.35 micron and that has ended

Item 2 is less clear, but eliminating sales of 200 and 233 MHz chips below cost should help a great deal.

Petz
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News