Intel Corp (INTC)

[jhalada]

chipguy,

(old post)

This is all meaningless drivel and FUD. Why don't
you do some research on the bin spead of modern
CMOS processes across plus and minus three sigma.

To get the complete picture, you need the center of distribution (coming out of your fab) and center of distribution of what market demands.

I don't think you even understand what variable cost
means. It is the incremental cost of materials, labour,
energy etc to manufacture one additional unit. Design
costs, capital depreciation, advertising etc do not
come into play.

I chose Banias because it is manufactured in the same
process as Intel's current leading edge chipsets. The
variable cost of Banias today would be basically the
same as it was when it was at peak sales.

I understand variable costs very well, and I understand that they are a fraction of total costs, which you are conveniently disregarding just to make a particular point.

The cost is "basically" the same, while you swept so many relevant things under the carpet that the carpet looks like a mountain.

Joe