Elmer, Re: Isn't R&D expensed immediately? I don't think it's amortized like depreciation would be. This is an area that's a little unclear.
On the financial statement, you're right. R&D is expensed every quarter. What I meant was that as you sell more processors, the R&D costs are spread out over the volumes. As the number of processor goes up, R&D cost per processor goes to zero. Maybe "amortized" was the wrong word, but the point was that the added R&D for a Banias processor (compared to a Pentium proliferation) won't increase the costs all that much, since Intel intends to sell a lot of them.
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