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Intel's CPUs cost only $40 to make


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

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

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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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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.

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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?

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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? timer.gif

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.

tiny_point.gif 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?

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