Replies to post #33966 on Intel Corp (INTC)

[Elmer Phud]

alan

On revenue of $1.22B last quarter, AMD only netted about $100M of that. Revenue is expected to go up about $100m, but expenses could easily outstrip that number... and the expectation is for substantial profit growth.

Interesting... Now with Intel selling ~5 million more C2Ds than anticipated earlier on, does it make sense that those stole highend sockets from AMD and hence drove AMD's ASPs down even further? In the workstation market Gelsinger said C2Ds account for 40% of the worldwide 2 socket workstation/Server demand. Did they take share from Opteron or P4?

[The Duke of URL]

I sure hope you don't BS about chip manufacture the way you are BSing about accounting.

You said Fab 36 was coming on.

I said fab costs are capped* not expensed,

You then rambled on about 10 additional extraneous elements which I assume you did to cover up the simple mistake you made in your first post, in COGS which is what I assume you mean when you say COG.

But thank you for the dissertation on the concept that if the chip costs more to manufacture, it will reduce the profit on a per chip basis.

* I believe AMD uses a cost recovery method which estimates the total number of units the plant will produce over its lifetime attributable to the improvement and then deducts a aliquot amount as each unit is produced. This has the advantage of paring the expense with the periods which have the volume.

There is a name for this method but it escapes me at this moment.