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Intel’s manufacturing cost: $40 per chip
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Wow, I hope Intel is making rent and expenses! Take a look at the insane numbers below and tell me where they are being fair…yikes!
Though Pentium 4s can sell for up to $637, Intel’s average cost for making a chip comes to $40, according to a report from analysts In-Stat.
The report doesn’t consider expenses related to design or marketing, or the fact that high-end chips can sell for more because fewer off the production line can actually run at top speed, but it does shed light on how Intel has managed to maintain healthy margins in an era of price declines. The cost has been steady at about $40 since 2003, according to In-Stat. [Read the rest]