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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: Petz who wrote (34608)	7/16/1998 6:23:00 PM
From: StockMan	Respond to of 1577020

P, I like your calculations. Keep it up!! Could you estimate why AMD requires more money when they have enough (692 mil) for at least a couple of Q's, and they have completely upgraded the Fab25 to .25u. Any help would be appreciated. Thanks in Advance Stockman

To: Petz who wrote (34608)	7/16/1998 11:22:00 PM
From: Time Traveler	Respond to of 1577020

>>"[Petz] never claimed that 60% / 75% is 65%. Where did this come from?"<< You mentioned Intel's gross margin was 60% a year ago. That is how I got this number from. With 49% gross margin this quarter, say 50% for simplicity. This is well justified because of a one-time charge. Along with the percentage of revenue generated by the CPU business of 75%, it does give 65% maximum gross margin for CPUs ASSUMING Intel's non-CPU business just breaks even. Now, what if your estimate of 75% number is grossly way off. A 70% number would give 71%; 65% would translate to 50% / 65% = 77%. The bottom line is that there are so many unknowns. You are fooling yourself more assuming too many things. However, the end result of more than $1B profit does really speak for itself, don't you think? I don't expect you to. Time Traveler Ps. Get yourself a computer at home.