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

To: THE WATSONYOUTH who wrote (143194)	9/10/2001 1:21:57 AM
From: wanna_bmw	Respond to of 186894

TWY, Re: "Well if Intel charges OEMs $1.5K for Itanium chips in volume, what do you think it costs IBM to produce Power4 chips. If it is less than $1.5K, then just where does this cost advantage lie?" You must still think that the only cost to IBM for these Power4 chips comes from manufacturing. Do you think the design spontaneously shows up for the engineers to run it through the fabs? Haven't we had this conversation before? IBM sells Power4 higher to cover its development costs. Given that Power4 is a low volume chip design, they have to charge more per chip. Period. wanna_bmw