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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: Dan3 who wrote (73088)	9/25/1999 2:04:00 PM
From: Charles R	Respond to of 1572105

Dan, <If Intel pays OEMs $500 for each of 200,000 boxes that need to be rebuilt, thats $100 million. If an additional $100 each for 300,000 boards is added to that the total is $130 million. With close to $2 Billion in unrealized gains, this will have no affect on earnings whatsoever, Intel just trades part of its portfolio, and has two footnotes that cancel each other out on the income and balance sheets.> You got a good point but that misses the primary issue. If Intel can't ship "K" MU high-end CPUs because of appropriate motherboard availability, that would contribute to $200xK M of lost profits for Q4 (of course assumption is that Intel is making $200 profits on average on each high end processor it is unable to ship). That could be enormous. This is completely different from one time issues like liability will be ignored by the market, especially if they have offsetting investment income. To summarize, it is extremely important for Intel to find motherboards for those highend processors that have been orphaned by Camino. Chuck