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Politics : Formerly About Advanced Micro Devices

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To: Tenchusatsu who wrote (58665)	5/18/1999 3:02:00 PM
From: Kevin K. Spurway	Read Replies (1) of 1580820

Re: "Kevin, if I recall correctly, Microprocessor Report once said that the cost to manufacture each Xeon is in the low to mid-$300 range." They were probably talking manufacturing cost. I'm including sales and marketing and generaland administrative costs as well. Re: "Going from socket 370 to slot 1 Celeron adds about $10, and that's just an addition of a daughtercard." Okay, I'll give this a $5 incremental cost to Intel, because they're trying to transition the market to socket 370. Re: "Then you have to throw in a gargantuan slot 2 cartridge. And then you toss in the heatsink and fan. Not the piddly $10 retail fan, but a beefier one since cooling the Xeon is a big deal, if you know what I mean." I don't think Intel is paying retail for those fans. Since fans, heatsinks, and PIM cartridges are cheap, let's add another $15 for the whole thing to the cost I estimated before. I'd say this is conservative. New cost total for our virtual Mendocino = $177 - $5 - $15 = $157. Still considerably more $$$ than a $90 Celeron. Kevin

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