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

To: pgerassi who wrote (247672)	2/12/2008 11:40:39 PM
From: wbmw	Read Replies (2) \| Respond to of 275872

Re: They list Intel as having $38,826 million in revenue. cost of sales $11,308 and gross margin of 27,518 in FY 2005. That's 70.8%. Now granted that is not in agreement with Intel's FY 2005 statement of $15,777 cost of sales and $23,049 gross margin or 59.4%. LOL, Pete. Better stick to the SEC filing, rather than the bull on fool.com. Re: However Intel enjoyed its greatest margins in the 1990s after it dumped DRAM and was selected for the IBM PC. Getting those numbers with web links are difficult. Intel's only goes back to 2001, although you can see 2000 in them. You can go back further than that on the Yahoo SEC filings link. Here's one 10k from 1999. yahoo.brand.edgar-online.com Here are GMs in some of those years: 1997 - 60.3% 1998 - 54.0% 1999 - 59.7% Still nothing close to 70%. Re: Best in those appears to be a little more than 63.9% in Q3, 2000. However if you remove the revenue and expenses of the non CPU related divisions, that year you get over 70% (72.4% for Q3/00). But I thought your point was that Intel might "go back" to 70% margins without solid competition. Turns out Intel was never at 70% GMs as an entire company, and if you are going to look back to one single quarter and start subtracting other things out, then your entire argument gets put on shaky grounds. For example, what are Intel's GMs today, if you subtracted out everything but CPUs? Probably close to 70%, if not higher, but what does that prove? CPUs today are competitive and affordable. Intel has been able to hold GMs near historic highs due to cost cutting, even as ASPs fell. Competition has indeed worked, Pete, but so has good business. Intel has a cost structure where they can generate great profits while delivering competitive and affordable products. AMD has a cost structure where they lose a lot of money when they try to compete in price. It's all a function of good management.