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

To: RDM who wrote (48550)	2/4/1999 7:14:00 PM
From: Elmer	Respond to of 1572185

Re: "It is an interesting question what Intels costs are. I am sure that there is considerable knowledge on this thread about the factors contributing to cost of sales. However, the apportionment of marketing, G&A, R&D charges of $5.1B by Intel recovered at least in part by the shipping of 100,000 X86 CPUS per year (possibly $40-$51 per chip). This makes it possible for anti-trust lawyers to argue that if the cost of sales is $50 for a celeron then charging less than $90 is dumping. What percentage of Celeron sales is less than $90? I do not know. Anyone with any ideas while we are waiting for next quarter?" This issue has been discussed. Consider that Intel ships at least 2 chips in their chipsets for every processor so your units shipped are over 300 million. Add in their microcontrollers, networking products and Flash memory and the number may be 500 million units. So how much gets assigned to each chip? Should the Celeron get charged for the R&D that went into the core? Why? What about the huge amounts of R&D that go into the Merced project and Willamette, should the Celeron be assigned a % of this expense? How much? EP

To: RDM who wrote (48550)	2/4/1999 7:24:00 PM
From: Yougang Xiao	Read Replies (1) \| Respond to of 1572185

RDM: RE: Back Half Emailed to John Greenagel @AMD in charge of corp communication the same question concerning the "back half", here is his reply: "I would interpret that statement to mean that roughly midway through the quarter -- which ends on March 28 -- we should begin to see a richer product mix from our AMD-K6-2 production, i.e., a higher proportion of products at clock speeds of 350 MHz to 400 MHz and above. I don't believe Jerry meant to say that everything would change as of a particular date." ******************* I might add that his reply came back within about 15 minutes of my initial inquiry.