Replies to post #133232 on Intel Corp (INTC)

[wbmw]

.....well for Baytrail at say 55% margin, cost would be $12 to produce.....$15/$27 = 55% margin.......so for the $15 payola scenario, contra revenue is ZERO.....for the $5 payola scenario, Intel makes a $10 PROFIT. So where's your scenario where there's enough payola to produce significant "contra revenue" at years end. You'll need to try harder. How about binomial_queue or anyone else give it a stab.

So in your model, contra-revenue is the only cost that goes into business unit operation?

Maybe you should check your own math.

[DavidA2]

In reality I believe the initial value is closer to $20. They have said that Bay Trail Type 3 reduces it to 1/2, so that's at $10.

Regardless, the whole point of my post was that the platform is price competitive with Mediatek. I know how much an SoC should cost, approximately $20. So if they needed $15-20 Contra Revenue to reach $27, my post wouldn't make sense, because it means they would be selling it at $42-47.

Bay Trail with LTE is said to cost $47. Mediatek MT8382 is $39.9, but with 3G. Bay Trail costs more, but it has LTE, which will command a premium. That points it as a rough price parity.