Intel Corp (INTC)

[Elmer Phud]

DewDiligence -

Your contention that the $637 high-end Banias will have a COGS of only $60 – and hence a gross margin of 90.6% (577/637) -- strikes me as naïve. Regards, Dew

I've got to jump in here. The fact is that the $60 cost is unrealistically high unless you are amortizing a heap of R&D. Based on die size the cost will be well below $30 and probably below $25.

EP