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

To: Elmer who wrote (85871)	1/7/2000 4:48:00 PM
From: Cirruslvr	Read Replies (1) \| Respond to of 1572746

BULLETIN: Gateway to announce AMD systems Yawn, didn't we know that? ;) Maybe an official announcement will get the stock above Jim's 31.8125 level. ______________________________________________________________________ BULLETIN: Gateway to announce AMD systems PC maker Gateway on Monday will resurrect its Gateway Select line consumer PCs using processors from Advanced Micro Devices (NYSE: AMD). The deal comes just after Gateway blasted AMD rival Intel (Nasdaq: INTC) for component shortages that caused Gateway to lose a significant amount of sales last quarter. It's not clear if the two events are directly related, however. Story to follow. --John G. Spooner, ZDNN zdnet.com ______________________________________________________________________

To: Elmer who wrote (85871)	1/7/2000 5:13:00 PM
From: kash johal	Respond to of 1572746

Elmer, re:"celery costs" Yes it is much more than $10 if you count depreciation. But we were discussing incremental or marginal costs ot at least I was. regards, Kash

To: Elmer who wrote (85871)	1/7/2000 6:44:00 PM
From: Petz	Read Replies (2) \| Respond to of 1572746

Elmer, <$16 cost for Celeron is not too high if it includes depreciation> No way does this include depreciation. Intel's depreciation for Q4'99 will be about $900M, it was $769M in 4Q'98. Since 75% of Intel's revenues are associated with microprocessors and Intel made about 33M CPU's this quarter, that works out to 900(0.75)/33 = $20.45 per CPU. And the die size of the Celeron is higher than any other Intel CPU, so it should at least* receive a proportionate share of the cost of all that fab equipment, which is what depreciation represents. BTW, R&D and MG&A are each similar sized chunks of change. Petz