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To: Elmer Phud who wrote (148814)1/24/2005 1:12:46 AM
From: PetzRead Replies (1) | Respond to of 275872
 
NICE TRY with your fab/depreciation calculations. You estimate $3 depreciation per CPU, but if you divide Intel's actual depreciation charge by the number of CPUs, you get $26.50 per CPU. Which only means that 90% of Intel's fab capacity is used to produce products which generated 15% of their revenues.

The other 10% produces 85% of their revenues and 120% of their profits.

Yes, your methodology must be perfect.

Petz



To: Elmer Phud who wrote (148814)1/24/2005 11:41:26 AM
From: Joe NYCRead Replies (3) | Respond to of 275872
 
Elmer,

Depreciation per CPU ~$3.00

LOL. Too bad that Intel has to have 3 "spare" fabs for each top performing one, and the useful life of the initial investment is good for 1 year or 2, BTW.

One would wonder why Intel would build 3 "spare" fabs in addition to the single fab that can supply the entire market for CPUs. Maybe the yields are less than world class.

Joe


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