Intel Corp (INTC)

[spokeshave]

Elmer Phud: I must be missing something. You seem to be concentrating primarily on the cost of the die, but that is not the whole picture. As I understand it, COGS should include not only raw material costs (die costs) but production costs, packaging costs, testing costs, shipping costs, etc. All of these should include labor, shop consumables, supplies, etc. I have a very difficult time believing that Banias will have a total COGS of less than $25. That seems to me to be every bit as unrealistic as you see $60 to be, though I believe that $60 is probably more realistic.

Nonetheless, all of this is pure speculation, and we both could be 'way off.