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

To: chomolungma who wrote (48530)	7/20/2001 3:55:14 PM
From: heatsinker2	Respond to of 275872

Chomo- Your numbers are wrong. Intel's gross margin in 2000 was 62.5% Interesting, yes I made an error. Your number is correct. I looked at the numbers. In 2000 the gross margin was very consistent, right around 62. If find this quite odd, since revenue levels fluctuate significantly during the year, I would expect more movement since many manufacturing costs remain constant, independent of output levels. In Q1 there was a step-function move downward to 51%. Q1 was pre-price war. Q2 included the price war, but not much change in margin. So to conclude, it is true that the gross margin is headed in the correct direction, which is down. OTOH, this sure looks like a fantasy number because the moves in gross margin don't seem to reflect pricing and revenue moves. Hey, people believed that Cisco could never miss either...