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Technology Stocks : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?

To: Dan3 who wrote (124775)	1/14/2001 1:07:12 AM
From: semiconeng	Read Replies (2) \| Respond to of 186894

As long as they are selling them for $400, $70 is no big deal. But, going by the prices charged by Dell, Compaq, etc., Intel receives between half and 2/3 of the list price for its chips (sometimes less). So if a P4 is listed at $500, sells for $250, cost $100 to make, ---Where did you get these figures from? Thin Air? "Intel receives between half and 2/3" is an AMDroid dream not supported by facts. Then you use the 1/2 figure, and assume that it costs $100 to make, again pulled out of thin air based on your zero knowledge of semiconductor manufacturing. and requires a $60 rebate, Intel makes $90 on the chip. On the equivalent P3 they were selling this summer, they made $225. If the chip carries a list price of $350, and sells to OEMs for $175, they barely break even. ---And once again you make assumptions of cost vs. selling price, again assuming a $100.00 cost to make P3 despite the fact that it costs the same to manufacture a silicon wafer regardless of the product on it. P3 has a smaller die, which means more die per wafer, which means lower cost per die. Again pulling numbers out of thin air based on your bias, and not any personal knowledge whatsoever. AMD can sell a GHZ+ Athlon at $300 list, $150 cost to OEMs, and make $120 on the chip. ---And this was the funniest part of all. After incorrectly pegging the cost of manufacturing a single P3 die as being equal to manufacturing a P4 die, and pegging both at $100.00, you now say that an Athlon on the other hand costs only $30.00 per die to manufacture ($150 - 120 = 30) Calculate past ASPs x processors sold and subtract profits to get minimum required ASPs. AMD needs average profits of $40 per chip to make any money. Intel needs average profits of $120 per chip to make any money. ---Funny how you seem to "assume" how much profit both companies needs to "make any money". I guess that we've already have seen how much knowledge of semiconductor finances you have....zero. I guess you just twist the numbers any way you want, to fit your AMDriod bias don't you. That's the kind of difference that can force changes to marketing plans, and force Intel to let AMD sell a few chips, whether Intel like it or not. Regards, Dan ---Whew..... Tell me something.... "Alice", how's things in wonderland? This post of yours has got to be the biggest bunch of hooey I've seen come out of an AMDroids keyboard in quite some time. If not based at all in fact or reality, at least it was good for amusement. Semi