Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Scumbria who wrote (58636)	5/18/1999 1:37:00 PM
From: Tenchusatsu	Read Replies (1) \| Respond to of 1571880

<The company which will soon release the K7, much to the chagrin of those associated with Intel.> Chagrin? Not necessarily. More like, "We're ready. Let's see what you got." Tenchusatsu

To: Scumbria who wrote (58636)	5/18/1999 1:43:00 PM
From: kash johal	Read Replies (5) \| Respond to of 1571880

Scumbria, Re: Margins Stop posting this krapola on margins when you clearly don't know how they are calculated. 1. GROSS MARGIN You take your manufacturing cost and DIVIDE by (1-%Gross margin). So it is IMPOSSIBLE to have greater than 100% GROSS MARGIN. So if it costs AMD $40 to manufacture the K6-2 then they have to sell it for $80 to get a 50% gross margin. 2. MARGINAL COST It is illegal to sell below the marginal costs. Marginal costs do not include costs such as depreciation etc. Intel marginal costs are in the $30-40 range for the mendocino. THEY are NOT breaking the law etc etc etc. 3. R&D As has already been pointed out R&D is expensed in the quarter that it is spent. SO the P6 CORE development and Mendocino CORE development costs have NOTHING to do with todays margins. R&D does affect the P&L. Todays R&D expenses are going into stuff like merced/0.13 process development etc. SO trying to add the previously expensed costs for P6 core to todays costs for Celeron to come up with a COCKAMAMIE analysis on why Intel is selling Celerons below cost is ASININE. Regards, Kash