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Politics : Formerly About Advanced Micro Devices

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To: Petz who wrote (45269)	1/10/1999 2:06:00 PM
From: Elmer	Read Replies (1) of 1582957

Re: "Elmer, re:Celeron die cost of 21.25 and total cost of $42. Exactly how did you arrive at total cost? Did you divide R&D + Depreciation by the total number of chips Intel shipped? Supposedly Intel shipped 8M Celeron's last quarter, about a third of total production, so you are saying that Intel's depreciation + R&D was 3(42-21.25)8,000,000. That comes to a little less than $500,000,000. Unfortunately for you, Intel's R&D alone (they don't break down depreciation) in last quarter's 10Q was $617M! You really should apportion at least 25% of "marketing, general, administrative" to the Celeron also. That was $766M." I don't agree. I don't believe AMDs estimated cost included R&D, marketing etc, so why should Intel's? And BTW, depreciation is included in the wafer cost. EP

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