Replies to post #2054 on Intel Corp (INTC)

[Elmer Phud]

DewDiligence -

On the possibility that Banias, in any flavor, can be sold for less than $100 at a profit, we'll have to agree to disagree. Even after reading your analysis of Banias' architecture on the TMTA MB, I simply can't come up with a set of plausible assumptions that leads to a profitable price below $100.

Lets see your numbers. I'd like to see what your assumptions are.

EP

[wbmw]

Dew, Re: On the possibility that Banias, in any flavor, can be sold for less than $100 at a profit, we’ll have to agree to disagree. Even after reading your analysis of Banias’ architecture on the TMTA MB, I simply can’t come up with a set of plausible assumptions that leads to a profitable price below $100.

I don't agree to that just yet. ;-)

Since you have heard my assumptions and analysis of Banias costs, let's hear yours. I went through possible R&D cost scenarios, as well as through a manufacturing cost analysis, and I have Banias CPUs as costing well under $100 to produce. I think many experts on this forum will agree that it is quite easy to manufacture a CPU today that costs less than $100, and in the case of Banias, this would be especially true, due to the small die size and high volumes that Intel plans to sell.

I think Astro's chances will have to depend on how it compares on the various vectors that Intel is trying to promote. That includes performance, battery life, form factor, and wireless capabilities. It may very well have an advantage in some of these, but will it have an advantage in all? From what I have seen, a "draw" in capabilities usually means a "win" for Intel and a "loss" for its competitors. That is due to the advantage of brand recognition, which causes any zero-sum game to tilt in Intel's favor. Again, that is just observation.

wbmw