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

To: Jim McMannis who wrote (151885)	12/10/2001 2:22:45 AM
From: Elmer	Respond to of 186894

Either you or Yousef said Intel could make these chips for under $30 no problem. I finagled some numbers and they seemed to verify that. So a cost of $25-$30 seems plausible. At that price, even a $5 profit is 20% markup. Ahhh I see I still have more work to do. Intel can make some chips for under $5 and some for over $100. It's a die size thing Jimbo. A wafer has a fixed cost. It depends on how many die you get from that wafer plus the packaging and test cost and over time the yield goes up as you get the receipe right. Also after you've already depreciated it over a few hundred million parts the costs goes down even more. Having said that, how do you figure the cost of an Xbox chip? EP