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

To: Dan3 who wrote (68331)	1/19/2002 4:17:00 PM
From: semiconeng	Read Replies (1) \| Respond to of 275872

Now that Dell's "have it your way" approach is dominating business purchases (and Compaq etc. is starting to offer the same choices) more IT managers are finding it easy to cut their total acquisition costs by going with a CPU a notch or two below the top end, while keeping everything else the same - but that 15% system price drop represents a huge drop in the profits Intel makes on the CPU.A 1.8GHZ and 2.2GHZ chip both cost Intel about $140 to make (after figuring in overhead costs). But the 1.8 sells for $200, while the 2.2 sells for $550. The Dell system gives Intel a profit of $60, while the IBM/Compaq system gave them over $400. --Dan, based on the fact that your assumption about how many units of each bin split intel is selling, or what it costs to make chips, are numbers pulled from who knows where, I'm not even going to take the time to refute fantasies. Intel increased their profit margin in Q4, Whether they did it with higher ASP's, or lower manufacturing costs, the fact remains that intel had higher profit margins in Q4. And that's all I have to say about that fantasy. Semi