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

To: FJB who wrote (36765)	9/7/1998 12:35:00 AM
From: StockMan	Respond to of 1571061

Bobby, Intel is still the low cost producer of CPU's. It still produces 386's for nearly free. When you compare costs, compare the products too. Sheesh.

To: FJB who wrote (36765)	9/7/1998 1:13:00 AM
From: Paul Engel	Read Replies (1) \| Respond to of 1571061

Bob - Re: " Imagine that one company builds MPUs at a lower cost than another, but then sells them at a much lower ASP. This company could have an operating loss, while having a lower cost of production." What company would be stupid enough to do this? Can you name two? Paul

To: FJB who wrote (36765)	9/7/1998 2:01:00 AM
From: nihil	Respond to of 1571061

RE: Lower cost Unit cost is an arbitrary accounting convention. What unit are we talking about -- the average or the marginal or one in between? Should cost include depreciation? Should it include an allowance for unavoidable taxes? Should it allow for unforfeitable subsidies (such as tax refunds?. Should cost include an allocation of overhead expense like the CEO's Mercedes? Suppose one product has a component (L2 cache?) that makes it superior (sell at a higher price). Is the cost of adding that part a production cost or a selling cost? Therefore to say Co. A produces product a at a lower cost than Co. B produces product b is sort of meaningless unless the two products are in every significant respect identical. They seldom are.