Re: Intel Price Drop?

Article View: alt.comp.hardware

Article #363

#363

From: biggfredd
Date: Fri, 31 Jul 1998 00:00

20 lines
1791 bytes

 > > 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.

Technical Details

Message-ID: <MDiw1.375$bd2.243286@newsfeed.slurp.net>

Path: arc1-ca.pugleaf.net!unknown!not-for-mail

References: <35be7747.0@news.snowhill.com> <6ppph2$mh5$1@news2.ee.net> <35C10CD4.403D@mordor.com>

Show Full Headers

Complete Article Headers

X-Google-Language: ENGLISH,ASCII-7-bit
X-Google-Thread: 110292,291316b76d2bf713
X-Google-Attributes: gid110292,public
X-Google-Thread: 1045b9,291316b76d2bf713
X-Google-Attributes: gid1045b9,public
X-Google-Thread: f5f89,291316b76d2bf713
X-Google-Attributes: gidf5f89,public
X-Google-Thread: 113106,291316b76d2bf713
X-Google-Attributes: gid113106,public
From: biggfredd@NOSPAMcomputech-online.net
Subject: Re: Intel Price Drop?
Date: 1998/07/31
Message-ID: <MDiw1.375$bd2.243286@newsfeed.slurp.net>
X-Deja-AN: 376631695
References: <35be7747.0@news.snowhill.com> <6ppph2$mh5$1@news2.ee.net> <35C10CD4.403D@mordor.com>
Content-Type: TEXT/PLAIN; charset = US-ASCII
Organization: not much
Mime-Version: 1.0
Reply-To: biggfredd@computech-online.net
NNTP-Posting-Date: Fri, 31 Jul 1998 05:19:56 PDT
Newsgroups: alt.comp.hardware,comp.sys.ibm.pc.hardware.chips,comp.sys.intel,3dfx.game.support

Reply to Parent Message