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Technology Stocks : Disk Drive Sector Discussion Forum -- Ignore unavailable to you. Want to Upgrade?

To: Pierre-X who wrote (2269)	1/14/1998 1:05:00 PM
From: Frodo Baxter	Read Replies (1) \| Respond to of 9256

link: It's a powerpoint file of Craig Barrett's analyst presentation at their November meeting. >Can you clarify the nature of SRAM's role in the lower GM? Are they saying that the actual component cost of the SRAM is responsible for the lower margins? Your second question answered your first. If a Pentium MMX costs $40 to make and sells for $100, its gross margin is 60%. But if a Pentium II costs $80 to make plus $20 for SRAM, and sells for $200, real margins are higher, but margin percentage is "only" 50%. (all numbers are for demonstration purposes only...) >Do you mean integrated into the CPU itself? Or a dual in-line package like the PPro? To my knowledge, Intel just said "integrated." They probably would elaborate if asked. To my knowledge, nobody has done so. However, I would guess the former, as there should be some room in the .25 micron shrink.