Replies to post #62805 on Advanced Micro Devices Inc (AMD)

[jhalada]

Alan,

I think chipguy puts the quarterly volume at 75K...

Which is based on a series of assumptions - multiplying one another.

The server research firms (IDC, Gartner) show Itanium server shipments at a little over 5,000 per quarter. It is kind of hard to reconcile that with 75K Itaniums shipped.

I could buy a range of 25 to 50K per quarter - which would include some of the clusters, for which Itanium is apparently supplying Itaniums for free.

Joe

[I_banker]

Alan, I think you underestimate the labor costs. In the US, you can add 50% to the gross wage for benefits/taxes etc. Therefore, your all in employee cost of 40K per person would mean that each employee were earning $26,666 -- a tad low even for a new hire.

Keep in mind compensation exenses in Europe are higher, particularly given the Euro/$ exchange rate.