Formerly About Advanced Micro Devices Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Formerly About Advanced Micro Devices

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Scumbria who wrote (48650)	2/5/1999 2:35:00 AM
From: Tenchusatsu	Read Replies (2) of 1572491

<Intel is using their Xeon profits to try and drive AMD out of business. Do you dispute this statement?> Yes, we dispute this statement big time. You might not realize this, considering that your eyeballs are focused on Xeon's huge price tag, but the Xeon is still a very low volume product. I'd be surprised if more than one or two million Xeon units were shipped last quarter. Sure, the margin is enormous, but the cost of producing a Xeon is still huge. Remember that some of the profits from Xeon also go towards the server motherboard and chipset costs as well, since I don't think Intel has much of a margin selling chipsets. Or do you think that us chipset guys get paid solely from chipset revenues? And of course, some of Xeon's profits also has to go into software and OS support, guidance for those who build Xeon servers for a living, development towards increasing RAS for servers (™Tony Viola), full platform validation, etc. Do you think Intel can fund all of this from Xeon sales alone if Xeon were sold at Celeron-like margins? Tenchusatsu

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next