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To: kash johal who wrote (37782)	4/29/2001 1:24:44 PM
From: fyodor_	Respond to of 275872

Kash: And folks are missing the point: INTEL MAKES TONS OF MONEY ON PIV at $200-300 ASP's. Oh, I don't disagree with you on that. The problem is, many (myself included) tend to look at it from the following perspective: Q1: blendedASPUnitShipments - Costs = Profit With ASPs and, likely, unit shipments going down for Q2, that "profit" item on the other side of the equation is going to suffer. Especially when Intel basically commits to not* cutting costs ;-). I don't think anyone on this thread doesn't believe Intel makes money (and a lot of it, at that) on each and every P4 it sells - even at the new, low prices. However, that won't necessarily translate into great profits - at least for the current quarter. -fyo

To: kash johal who wrote (37782)	4/29/2001 1:49:08 PM
From: combjelly	Respond to of 275872

"The big question is wether they can sell enough product." And that is the billion dollar question, isn't it? Quite frankly, I don't see how they can sell enough at any price. The current i850 needs DRDRAM and expensive motherboards, and the i845 will likely perform more Celeron-like than PIII-like, and for substantially more money to boot. It is a tough proposition for Intel right now and for the next year or so...

To: kash johal who wrote (37782)	4/29/2001 2:30:40 PM
From: Pravin Kamdar	Respond to of 275872

Kash, I don't disagree with you on that. However Intel is rolling around in excess capacity right now. And folks are missing the point: INTEL MAKES TONS OF MONEY ON PIV at $200-300 ASP's. The big question is wether they can sell enough product. I suspect that intel is gonna starve Celery supply. And push PIII and PIV's. Where PIII takes over celery cpace by year end as the "new' celeron. I think you are seeing things very clearly. All good points. Pravin. PS: I agree with fyo on the "light" issue, though. But, it's just another example of a reporter not understanding the subject material well enough to be able to correctly describe it. However, I think anyone familiar with the issue knew what he was intending to say.

To: kash johal who wrote (37782)	4/29/2001 2:36:45 PM
From: fyodor_	Respond to of 275872

Intel Unveils The Un-Signing Bonus Forbes story from last Thursday - one way Intel is trying to reduce costs: This week the chipmaker turned the concept of the signing bonus upside down by telling its managers that they are now authorized to offer bonuses to people who have been promised jobs and agree to give them up. These un-hires will even get to keep their original signing bonuses. Full story: forbes.com -fyo

To: kash johal who wrote (37782)	4/30/2001 1:17:57 AM
From: Petz	Read Replies (1) \| Respond to of 275872

kash, you oversimplified the financials in saying P4 makes more profit than P3. When making P4's, Intel's depreciation and MG&A expense have to be spread across far fewer chips than would be possible with the P3. Just considering raw materials and direct labor to make the P4 vs. the P3, you are right about the cost. And there is no way a 1.3 and 1.4 GHz P4 will have an ASP higher than $160. I read someplace that the Rambus rebates are NOT ending until Q3. Finally, there is another factor in that the P4 has more layers and requires more processing steps. Therefore, a fab that can normally process 5,000 wafers per week on the P3 process may not be able to process 5,000 wafers per week when making P4's, just because the "assembly line" for the P4 is longer and all the equipment for 5,000 WPW of processing steps might not fit in the fab. Petz