Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: AK2004 who wrote (189584)	3/13/2006 4:38:34 PM
From: eracer	Respond to of 275872

Re: in order for your numbers to be correct cpu charge should be on the order of 50% of the system - a bit too much. Even if true it is hardly an incentive.... I wouldn't consider 5% typical either and is why it was on the high end of my range. In most cases high end CPUs are sold with other high end components which does lower the influence the CPU has on the system. Here is what I would call a more typical scenario: A 30% discount on a $250 CPU is $75. A $75 savings on a wholesale CPU might translate into a $100 discount on a retail system. If the retail system was originally $1000 and is now $900, a 30% discount in CPU price lowered the retail price tag of the system by 10%. While a 10% discount for a system with an underperforming and overheating CPU would never be attractive to you or me, someone who knows little about computers who sees Intel systems at work and is constantly bombarded by Intel and Dell ads might think differently.