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Politics : Formerly About Advanced Micro Devices

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To: Joseph S. Lione who wrote (55001)4/9/1999 6:34:00 PM
From: Scumbria  Read Replies (2) of 1572330
 
Joe,

Intel's manufacturing costs are elusive. The massive overhead of the company make raw material calculations somewhat meaningless.

If the only considerations are wafer material, fab depreciation, labor, packaging, test and shipping- Intel can probably make the case that Celerons are profitable.

The truth is that Intel has huge amounts of overhead that need to be factored into an honest calculation of their product costs. Design, marketing, support, employee stock options, buildings, computers, etc. are not cheap.

Scumbria
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