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

To: grok who wrote (58626)	5/18/1999 1:15:00 PM
From: Scumbria	Respond to of 1571599

KZ, Thanks for your informative post. However, shouldn't there be a bigger range between gross margins from lowend to highend? After all, costs are rather close to being the same and ASAP is hugely different. Exactly. Intel sells approximately the same piece of silicon at a price range of $50-$2000+ I would expect that margins would vary somewhat across this range ;^) Scumbria

To: grok who wrote (58626)	5/18/1999 1:25:00 PM
From: RDM	Read Replies (2) \| Respond to of 1571599

< couldn't the Celeron line have gross margins of about 55-60%, PII/III about 65-70% and Xeon about 75-80%?> I think it is more likely that the gross margins for the Celeron are 30% than 55%. This 30% number is consistant with the Q1 Revenue and cost numbers. Q1 1999 Estimate Quant ASP Revenue GM(est) Manf. Cost Celeron 9,770,000 $90 $879,300,000 30% $615,510,000 PII/PIII 13,000,000 $300 $3,900,000,000 60% $1,560,000,000 Xeon 1,100,000 $1,000 $1,100,000,000 85% $165,000,000 $5,879,300,000 $2,340,510,000