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

To: Mary Cluney who wrote (156208)	1/18/2002 4:40:39 PM
From: John Hull	Respond to of 186894

Mary, there's something of a sliding scale. Low end boxes have more of their BOM tied up in the CPU as a % of total and there are orders of magnitude more units sold in the entry-level space. High end servers ship very few units by comparison but the CPUs are significantly more expensive. In higher end boxes, CPU share of total cost goes way down as amount spent on memory, storage and high-speed interface cards goes way up. In fact, the really cute thing done by server OEMs is that they sell you the minimum configuration box of a high end system (1 CPU) where that one CPU is pretty cheap and then they charge much more for additional CPUs in higher end systems. I remember SPARC chips being quoted for $10-15K for each additional CPU added beyond the base configuration. That's a few years old data, but it is indicative. That way they can advertise a low "starting at" price and then roll-up the final cost in the sales process. Sorry there is no "rule of thumb" number I can offer you. jh