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To: Petz who wrote (200885)6/7/2006 12:09:14 PM
From: dougSF30Read Replies (1) | Respond to of 275872
 
But more important, Intel's expenses -- Marketing, General, Administrative plus R&D do not magically go down, they will stay the same or go up

I'm sure these areas are also being looked at for cost control. Wouldn't you?



To: Petz who wrote (200885)6/7/2006 12:30:16 PM
From: Sarmad Y. HermizRespond to of 275872
 
>> Gross margin uses variable cost PLUS depreciation.

That explains why the cost analysis includes capital costs of the fab. So depr was accounted for in the 40%.

>> Marketing, General, Administrative plus R&D do not magically go down,

That's why a reduction in ASP (even when margin is maintained) can only be compensated by an increase in units sold.


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