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Politics : Formerly About Advanced Micro Devices

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To: Scumbria who wrote (58557)5/18/1999 2:32:00 AM
From: Tenchusatsu  Read Replies (1) of 1571802
 
<OK, Let's use your numbers. The average CPU cost to Intel is about $140.>

Brilliant, Scumbria. Have you forgotten that:

1) Mendocino Celeron, especially in socket form, costs less to manufacture than Pentium II/III? No SECC cartridge, no slot, no large off-chip L2 cache, no desperate need to climb the speed curve (less validation necessary), no need to validate on the 100 MHz bus. Throw in high volumes, and the low price of Celeron is more than justified.

2) Xeon costs a lot more to manufacture than Pentium II/III? Huge SECC cartridge, Slot 2 electricals, custom full-speed L2 cache, 4-way multiprocessor validation, chipset support, reference platform design, OEM and OS support, and low volumes all contribute to the high Xeon margins.

Tenchusatsu
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