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Technology Stocks : Applied Materials No-Politics Thread (AMAT) -- Ignore unavailable to you. Want to Upgrade?

To: robert b furman who wrote (17327)	1/20/2006 4:57:53 PM
From: etchmeister	Read Replies (1) \| Respond to of 25522

I never liked the concept of total solutions and that's reflected in my picks VSEA, LRCX and NVLS vs AMAT. There are pros and cons for total solution. In case one component does not work (for example chipset) than there is no fingerpointing because one sole supplier will be accountable. ATYT and NVDA combined topline is on order of $5.5 billion; that compares to INTC $42 billion; take a look at the component cost breakdown: Apple's low end version features RADEON X1600 @ 30 bucks; I understand ATYT and NVDA also make chipsets (don't know ratio between chipsets and graphic) but the $5.5 billion of ATYT and NVDA combined looks high to me compared to INTC's $42 billion. iSuppli: Apple's first Intel-based iMac has US$873 in components Printer friendly Related stories Comments Email to a friend Latest news Related topic Hot systems Press release; Eric Mah, DigiTimes.com [Friday 20 January 2006] Apple Computer’s first desktop PC to be based on an Intel-manufactured microprocessor carries a Bill of Materials (BOM) cost of US$873, according to preliminary data from iSuppli. The new Apple iMac desktop PC is based on Intel's Core Duo microprocessor, marking a major departure for Apple, which has never used an Intel-made microprocessor in its PCs, instead opting to employ PowerPC chips made by IBM and Freescale over the past decade, said iSuppli. With the introduction of the new iMac, and the Intel-based MacBook Pro notebook PC, Apple has commenced a planned transition of all its notebook, desktop and server PCs to the Intel architecture, said the research firm. iSuppli's teardown of the new iMac revealed that Apple also is using Intel's mobile 945 core-logic chipset to support the Core Duo microprocessor, said iSuppli, which estimated the cost of the microprocessor at US$265 and the two-device chipset at US$45. Together, the Intel microprocessor and Mobile 945 chipset account for 35 percent of the new iMac's total BOM, according to Andrew Rassweiler, teardown services manager and senior analyst for iSuppli. The Intel chips in the iMac are designed for use in notebook PCs, rather than desktops, noted iSuppli, adding that it believes Apple's decision to use Intel's notebook-oriented solution in its desktop iMac was a logical move. “Users want quiet and powerful machines,” said Matthew Wilkins, senior analyst for compute platforms research for iSuppli. “Intel is very focused on designing microprocessors that deliver the maximum performance without generating excessive heat or consuming huge amounts of power. For now, the Intel Core Duo fits that bill perfectly.” Above the US$873 BOM, the iMac carries a US$25 manufacturing and test cost, adding up to an US$898 cost, said iSuppli, adding that the cost estimate does not account for other items included with the iMac, including the keyboard, the mouse and documentation. Apple is selling the low-end version of the Intel-based iMac analyzed in the cost breakdown for a suggested retail price of US$1,299, according to iSuppli. Cost summary for major integrated circuits in Apple's low-end, Intel-based iMac IC Source Part Number Cost (US$) CPU Intel Core Duo T2400 265.00 northbridge Intel 82945GM 31.00 southbridge Intel NH82801GBMSL8YB 14.00 northbridge/graphics processor ATI RADEON X1600 30.00 SDRAM – GDDR (256Mbit x 4) Samsung K4J55323QG-BC14 20.00 Source: iSuppli, compiled by DigiTimes.com, January 2006