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

To: Elmer who wrote (66436)	12/27/2001 9:28:29 PM
From: Ali Chen	Respond to of 275872

"What about AMD's statement that their cost structure was 10-20% below Intel's? ...should yield well over twice the number of processors from a wafer. Their cost should offer a 50-60% advantage, if they have normal yields. " What makes you think that "cost structure" means only die fabrication cost? Cost structure implies also R&D, admistrative, and cost of sales, is not it? Plus quality ceramic packaging is/was more expensive... This is really "Another clue for you to ponder..."

To: Elmer who wrote (66436)	12/27/2001 9:34:16 PM
From: Bill Jackson	Read Replies (1) \| Respond to of 275872

Elmer, a 50-60% advantage, ?? Hard to assess this since we have no way of truly comparing the two statements. On the face of it twice the dice make each one cost half the price. let us say that AMD dice cost $1 and Intel dice cost $2. Then they both add a $5 organic package, Now AMD costs $6 and Intel costs $7. That means that other costs dominate. Bill

To: Elmer who wrote (66436)	12/28/2001 9:07:22 AM
From: fyodor_	Read Replies (1) \| Respond to of 275872

Elmer: What about AMD's statement that their cost structure was 10-20% below Intel's? That is very hard to understand when their die size is a little over half the P4 size and should yield well over twice the number of processors from a wafer. Their cost should offer a 50-60% advantage, if they have normal yields. There are many possibilities&#133 Certainly, cost structure would (as others have pointed out) include other factors such as testing and packaging - and perhaps even R&D. Still, it's also possible that the comparison was not one of Athlon vs P4, but rather AMD product mix vs Intel product mix. It just seems to me that you are trying to make the facts fit your theory - and not the other way around&#133 not totally unlike a few people on this thread I can think of ;-) -fyo