Intel's CPUs cost only $40 to make

[Press any key]

More profit here than car parts or retail clothing. NOT gas/petrol thought!

http://www.pcworld.com/news/article/0,aid,...n091405X,00.asp

".............

By continuously upgrading its production equipment to the latest technology, Intel maintains a low cost per chip of around $40, according to a report issued by industry researcher In-Stat.

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[Scubar]

thank god i dont buy nasty overpriced intel rubbish then.

[ripken204]

ur point? how much do u think that it takes to pay the people to do the research and development of these cpu's? and even more, how much is it alone just for research and development? they have taken years to finally make this and millions or dollars spent too.

[ringfinger]

I agree with ya ther ripken. The compnents it takes to make the CPU itself prob only cost $40, but like you said you need years of R&D and then the manufacturing process which you know has to be expensive.

[ripken204]

same thing does with windows and other software programs, like photoshop which so many ppl pirate, the reason it costs to much is that is took so long and so much money to make, look at all of the feature in it!

[trickytwista]

nasty overpriced? overpriced yes, but intel aint nasty, lol they **** good, intel kicks crappy AMD a** all day and night ,they aint no cowboys when it comes to throwing a cpu together.........

[ripken204]

where are u getting ur info from? amd rapes intel in gaming, and their X2 processors are better in everything compared to intels pentium D. just google for some benchies.

[KamiQuazi]

I agree with Ripken, I've only owned 1 Inhell and that was back in the sday Pentium 1... and from there on I have been won over by the speed and the dsesigns of AMD... AMD ROCKS!!!!

[roger04]

I agree with Ripken,  I've only owned 1 Inhell and that was back in the sday Pentium 1... and from there on I have been won over by the speed and the dsesigns of AMD... AMD ROCKS!!!!

<{POST_SNAPBACK}>

Inhell woohoo!!

[KamiQuazi]

LOL... Roger

[Thai3g_Eclipse]

How in the world did this turn into a AMD vs Intel schoolyard fight? Both respective processors have their own specialities, whether it be AMD's FX series for gaming or Intel's general performance in everyday applications. For those of you who bash AMD so heavily, have you even own or even use an AMD processor before?

To be concise, it's the truth that AMD is in the same hole as well. How much do you guys think it costs to produce an FX or X2 series processor?

[ripken204]

only wish i had an x2

[KamiQuazi]

no doubt... i would pay 40 for 1 any day of the week... lol

[Kelsenellenelvian]

Lol @ $40 bucks a pop over-clocking would be REAL fun!!!

[Press any key]

Suppose there are 600 million working computers (maybe more) in the world running Win software. Say 500 million have Intel and 100 million have AMD.

*Add a dollar to the price of every CPU for research and development.

That's $500 million for Intel.

That's $100 million for AMD.

Would that cover it?

Plus, on top of the $40 manufacturing cost you have to add R & D cost of $1 plus packaging and insurance and shipping costs. Custom duty may or may not be applicable because no one else may make these CPU's.

Say $9 for that.

Now that's $50 total.

Add Intel profit, ( manufacture should be 20%) let's say 100%. That's $100

Now add the wholesale profit, (should be about 35%) say 50%. That's $150.

Now add the retail sales profit, (should be 50%) say 50%. That's $225.

So the CPU should cost $225.oo over the counter in a box!

Questions: How much profit do you think Intel & AMD would make? Plus, if they were the wholesaler also?