Formerly About Advanced Micro Devices Message Board

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Politics : Formerly About Advanced Micro Devices

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To: Yousef who wrote (45491)	1/11/1999 8:32:00 PM
From: Petz	Read Replies (2) of 1582932

Yousef, re: $2,000 cost/wafer including depreciation. This is not true using any reasonable definition of depreciation. Furthermore, add R&D and MG&A, and the Celeron is losing money at $70 a chip. Remember, Intel's $780 million in depreciation is at least 3/4 related to CPU production, and they only made 26M CPU's. And I don't really care if they are paying depreciation on useless assets -- that just means they should be charging MUCH MORE than $780M in depreciation per quarter! Thats 3/4 of $30 a CPU anyway you slice it and results in a cost/wafer a heck of a lot higher than $2,000 per wafer (about 120 CPU's). The $2,000 cost per wafer is total BS. Petz

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