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Article #348

Re: Intel Price Drop?

#348
From: Inquisitor
Date: Fri, 31 Jul 1998 00:00
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Like I said before, IT'S GREED!!!


biggfredd@NOSPAMcomputech-online.net wrote in message ...
>
> > > It's correct to say that Intel could still make a profit at lower
>prices,
> > > but the fact of the matter is that it's doubtful that they'd sell
twice
>as
> > > many chips at half the price.  Since chips are almost 100% profit,
>that's
> > > what would have to happen to justify lowering the price.
> >
> >
> > According to most analysts figures (aw well as the INTC annual
> > shareholders report), INTC's profit on a CPU is in the low 50's
> > percentage-wise.  This figure has been pretty consistent for several
> > years now.
>
>When factoring in design costs and the costs of building new facilities,
etc
>(that is, unit cost accounting) those figures are certainly correct.  But
as
>my original post was worded, the materials (only) in a chip probably aren't
>more than 50 cents.  Put another way, the incremental cost of the next
>additional chip isn't very much.
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From: "Inquisitor" <rclark@snowhill.com>
Subject: Re: Intel Price Drop?
Date: 1998/07/31
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