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

To: kash johal who wrote (74590)	10/7/1999 8:55:00 PM
From: Bill Jackson	Respond to of 1574042

kash, I stand corrected. Still it leaves Intelk far below what it would make if the ASP was $100 higher. And what share of CPUs will AMD take of that 140 million? At 20% that could be 28 million, probably all the can make going flat out and they will make the same average $100? Could well be a better year. I suspect though that they will both get lower ASPs due to the preponderance of low end parts being sold. Now with the high end at say...20% and the low end having an average margin of $20 then Intel will sell 110M, 80% at $20 profit and 20% at say....$200 profit=90M at $20 + 20M at $200 =3.8 billion profit and AMD with the same spread 28.8=22.4M 20= 448M and 5.6m *200=1.12B totalling ~1.5 billion. These are just ballpark estimates but they show how valuable that 20% high end niche is. Of course the prices will not be in 2 discrete spots, there will be a continuum from high to low end of 10-15 processors at assorted speeds and end uses. I suspect if there is an Intel price war there will not be an average profit of $100 across the lines. Bill