Replies to post #4544 on Intel Corp (INTC)

[chipguy]

The Northwood is about 10% larger than the 970 but will have a much smaller variable
manufacturing cost than the 970 due to the latter being made in a significantly more
expensive process (SOI CMOS with one more interconnect layer) and manufactured in
much smaller volumes (Apple is roughly 3% of the PC market and dropping). Add the
fact that development NRE of the 970 will be spread over a much smaller lifetime sales
volume and it is obvious that the total cost per device will be much higher for the 970
than the P4. I will grant you that when it comes to *pricing* the numbers may closer than
the total costs suggests as Intel consistently makes money selling uPs while IBM Micro
consistently loses money.