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Technology Stocks : Silicon Graphics, Inc. (SGI)
SGI 90.68-2.2%Jan 27 3:59 PM EST

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To: ramin shahidi who wrote (5414)12/17/1998 10:40:00 PM
From: Kirk Vanden  Read Replies (3) of 14451
 
Quad Xeon for $6,999.00

I was just doing a quick price breakdown in my head.

400 MhZ Xeons with 512K full speed cache are about
what $800-$850.00 in volumes over 10,000. So 4 would
be roughly say $3,200 for just the CPUs, unless SGI
got a sweet deal from Intel. (keep in mind that SGI may
already pricing in Q1 99 Intel Xeon price reductions in
their stated NT box prices)

So, after the $3,200 we have about $3,500 left to finish
building the system with some (hopefully) left over for
profit.

A quad Xeon motherboard with SCSI built in would cost about
$700.00 - $800.00 based on current prices on Intel motherboards.
Add another $400.00 for SGI's (hopefully) awesome new graphics,
which are reported to be built into the motherboard.

Down to $2,400. Say $600.00 for a 9GB SCSI drive and that leaves
abot $1,800 left over. I'd say another $200.00 for 128 MB of
base memory also. Their pricing is probably without
monitor since that is how they price their UNIX machines when
stating base prices. Can they finish adding the keyboard, mouse,
case, CD, etc.. for the remaining $1,600 and make a profit ?

Yeah, I think they can. Assuming they sell direct and cut out
commisions to their salesman (whom I haven't seen in my office
in 3 years even though we have 15 SGIs). Support and other costs
must be added in also, but still seems like a quad Xeon can
be done for the $6,999.00.

Kirk
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