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Re: wthdik2 post# 131045

Tuesday, 03/04/2014 11:44:34 AM

Tuesday, March 04, 2014 11:44:34 AM

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customers can't be too happy seeing those 50+% margins however..so they'll insist the OEM's bring them a 2nd, 3rd and 4th choice



You think any company can survive in this space on less than 70%+ margins? Unlike mobile where the volumes are huge, Intel's total server chip volumes are 15 million with margins kept fat by massive leverage of PC chip volumes.

AMCC could sell what? 500k of these if the heavens smile upon AMCC's management team? Good luck selling 500,000 chips for $200 at 40% margins...not even gonna get your R&D back.
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