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Politics : Formerly About Advanced Micro Devices

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To: gbh who wrote (38428)10/6/1998 7:35:00 PM
From: Petz  Read Replies (1) of 1586777
 
gbh, re:<can they get the K6 (or K7) ASP above $100 for sustained profitability.>

$100 was the magic ASP needed for profitability with 3.8M K6-s and with other business segments in a funk. With 4.8M CPU's the ASP could even DROP and show a good profit. Remember, each additional K6 required only $30 to make. So other than the increased R&D expected for Q4, there's $70 profit in each additional K6, more than that if the ASP can move up again.

Petz
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