Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Advanced Micro Devices - Moderated (AMD) -- Ignore unavailable to you. Want to Upgrade?

To: Petz who wrote (46718)	7/9/2001 3:08:14 PM
From: Petz	Respond to of 275872

Correction to number of Intel CPU's in Q1. Originally, But even just using basic "COST OF SALES" -- raw material, labor, mfg costs etc., includes depreciation, so we will subtract it out -- Q1 COS = $3,225M minus deprec=$934 = $2,291 divided by 33.7M CPU's Q1 (based on 21.2% AMD market share at 7.3M CPU's) = $67.98 per CPU. NOT! Assuming 21.2% AMD market share, 2% "other" and 76.8% Intel market share -- they made 26.4M CPU's in Q1. So average mfg cost per CPU now becomes $60.64. (This is reduced by 30% to account for Intel's "other" businesses.) Applying a 1/3 discount because Celerony are cheaper to makes their mfg cost $40.43 This means that anything below Celeron 700 doesn't even cover manufacturing costs, according to Pricewatch-10%. Add in $24 marketing cost per CPU and $17 depreciation cost per CPU (see original post) and Celeron is totally a LOSS LEADER. Petz