Intel's Per-Chip Cost Averages $40

Fedorpheux writes "According to a report by the analysts at In-Stat, Intel's average cost per chip is about $40. These same chips, such as the Pentium 4s, can cost consumers up to $637. This $40 average cost has remained rather steady since 2003. This cost does not include money spent on marketing or development, but it does explain how Intel can continue its profits even in this era of quickly dropping prices in computer hardware."

Comments

Grr

[serenarae]

I wish they'd pass these low costs on to us peons who pay out the ass for their processors.

Wishful thinking.

How does Intel make money?

[ScrewMaster]

1. Profit!

Finally, a REAL Business Model!

[patricksevenlee]

Ok, I've seen lots of these parody posts for a long time now but for once, it's the real deal:

1. Make chips for $40
2. Sell for $637
3. PROFIT!!

Who woulda thunk it?

I have Intel beat.

[Anonymous Coward]

I spend $5 on a single pair of boxers that last me over 6 months. That's less than $0.03 per day. The best part? I can sell them for $25,000 on eBay by simply claiming Brad Pitt farted in them.

Re:In other news

[Anonymous Coward]

I'll pay you $0.75 never to write another.

Shire Reckoning

[uberdave]

eleventy billion dollars....

Only if you build it on the Brandywine.

It goes into the trash

[lullabud]

You left out that one time I left the pod on the nanoscope while I went to check the SVG tracks and the arm failed to retract before proceeding from wafer #1 to wafer #25, breaking the lot before I could get back to hit the emergency stop button. Sucks too, that was right after a fresh coat of polyimide, two or three steps before the end of the line. Must've been $150k worth of product in that pod. So, yeah, some of that money just goes right into the trash, or becomes a souvenir refrigerator magnet.. shhhh... ;-)

Re:Sorry to bring this up, but what about microsof

[IchBinEinPenguin]

yeah... 'cos magic fairies drop off the master CDs and Microsoft is just a big CD-replicating business.

Last time I spend that much (more, actually) with RedHat I didn't even get a CD.

Re:so what is the extra ~ $600 for?

[Bodysurf]

• Medical insurance for employees
• Research & Development
• Lawyers
• Employee Salaries
• Chip fabrication plants
• "Golden parachutes" for CEOs

I'm sure there are a lot more.

Re:so what is the extra ~ $600 for?

[ErikZ]

I'm terrible with numbers, so the above might not add up exactly...

Dude, you're typing this on a computer.