Replies to post #129650 on Intel Corp (INTC)

[fastpathguru]

Oh come on... Your claim is completely meaningless in a universe that includes your "contra-revenue," where (by your definition) a chip that costs $10 to produce can be sold for a price of $20 (hey, 100% gross margin!), wrapped in a $20-bill of "contra-revenue", and yield a net loss of $10/chip to Intel (not including the R&D that went into it...)

So many things wrong with this paragraph, I don't know where to start.

Sorry if the numbers are not exactly right.

But surely you aren't saying that "contra-revenue" doesn't count against Intel's net profits, in a manner directly associated with the sale of an individual processor?

Note that I'm not disputing your "Intel must sell above cost" notion... I'm just saying that "contra-revenue" is an oh so convenient way to sell processors for effectively below cost, so your notion is meaningless.

fpg