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Politics : Formerly About Advanced Micro Devices
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To: Maxwell who wrote (36786)9/7/1998 12:55:00 PM
From: JBoyd  Read Replies (1) of 1571022
 
The reason Intel is so profitable

Maxwell:

Good independent source for the "variable" costs of manufacturing the units. The other big, maybe even larger, problem for AMD is fixed costs. Intel has such large market share that they can earn less on each chip and still be profitable while AMD struggles.

I consider R&D to be a fixed cost for the chip industry given the short life cycles of products.

I've always wondered how much Intel spends on R&D relative to AMD for what they get in products. Obviously Intel spend much much more than AMD, but they are spending it on a much wider array of products. Who knows, maybe AMD/NexGen has a better design team. I know I used to think that, but given the performance over the last year, I doubt it.

Regards,
Jeff
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