How much does it cost to make.

[melarcky]

How much do you think it cost to make an Average CPU...
Like C2D e6300 or AMD x3800

 

[jimw428]

"Intel projected a gross profit margin of 49 percent in the coming quarter -- well below the 60-percent range Wall Street had come to expect before AMD began to steal sales from Intel over the last several quarters."

From these numbers you can see that average product cost is approx. 1/2 the average wholesale/OEM price. Keep in mind this is the average margin of all products, some are more profitable than others.

 

[Gah]

About 50 cents. Maybe a dollar.
Think of the R&D costs though.

 

[jimw428]

About 50 cents. Maybe a dollar.
Think of the R&D costs though.

You couldn't be more wrong.

 

[gm0n3y]

It actually doesn't cost a lot to make a processor. I assume by 49% profit margin, this is taking into account all of the amortized and operating costs (the only real way to talk about profits). That actual material, labor, electricity, etc it costs is probably quite low. The majority of the costs are the fab costs.

 

[APieceOfCheese]

About 50 cents. Maybe a dollar.
Think of the R&D costs though.

You couldn't be more wrong.


Yes he could. He could have said it was free...

 

[Fulmar]

Fabrication is where the money really is at. As for the 49% gross profit, that's only going to be after expenses. Just think of materials, salaries, bills for buildings, insurance, etc etc etc.

 

[eggsmckenzy]

I saw a chart some time ago, saying that processors cost about $10 or less to make, but that was for old hat processors fabbed on a much larger process than what is available today.

 

[jimw428]

The 49% number is gross margin, not net margin.