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


To: Ed Sammons who wrote (34609)7/16/1998 7:10:00 PM
From: The Phoenix  Read Replies (1) | Respond to of 1577024
 
Why not even a negative margin? Who says 0% is as bad as it gets. Certainly not sustainable..but a periodic negative margin to start new businesses is not unheard of.

As Intel dives into the networking business they are having to create support organizations which did not exist in their current go to market models. These costs can not be amoritized and therefore they may indeed be yeilding negative margins on non-processor business in the short term as they build the networking businesses. Just a thought.

Gary