Replies to post #3606 on Intel Corp (INTC)

[DewDiligence]

>> TMTA may be selling 1GHz product because the market demands it but that doesn't mean the binsplits are good enough to allow any profits at that speed. <<

It’s clear that TMTA is earning a positive and increasing gross margin on the TM5800. However, your comment is nevertheless apropos because TMTA has sacrificed some gross margin in order to meet HP’s demand for the 1GHZ chips. At the most recent CC, TMTA stated that yields from TSM have improved and, consequently, I infer that gross margin will benefit commensurately.

>> Is market share more important now [to TMTA] than profit? <<

Yes, evidently. Is this a reasonable approach? Possibly. If TMTA’s second-half financial numbers turn out as robust as management’s guidance, I will conclude that they did the right thing by sacrificing short-term margins. FWIW. Dew