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

To: ptanner who wrote (85063)	1/5/2000 1:28:00 AM
From: Process Boy	Respond to of 1572295

Patrick - <And the Itanium will only be out for the last quarter?> Intel says 2H, oh-oh. Could be 2 quarters. BTW, I'm in no way going predict unit shipments for Merced. I find the number being bandied about today quite astounding. PB

To: ptanner who wrote (85063)	1/5/2000 1:46:00 AM
From: tejek	Read Replies (2) \| Respond to of 1572295

Chris Dries, technology analyst at Invesco Funds, is looking for sales late this year of 2.5 million Itanium chips, which would translate to at least 5% of Intel's revenue and significantly boost profits in the fourth quarter. "That's definitely the story on the stock next year," he says.> -snip- <The server chip market, which generates $6 billion in sales, has been relatively flat, but still represents a pie Intel hasn't been able to touch. On average, Intel gets about $200 for each chip it sells, but the Itanium will sell at prices from $2,000 to $6,000 each, with as many as 10 chips per server. And since it costs Intel little more to manufacture the Itanium than the Celeron that sells for $65, we're talking about a chip that's almost pure profit.> The numbers in this analysis don't really add up -- or perhaps I missed something? ptanner, welcome to the thread! I agree the 2.5 mil for Q4 seems high....Intel may be planning a major push. Your right the server nos don't add up. What surprised me was the price spread for the server chip....2k to 6k. I concluded that one price anticipates serious competition from SUNW and AMD and the other does not. What are your thoughts on such a large spread? ted