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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."
but that's the chip maker's own decision to make, not a "required" one.
Well not nessacerily, first Intel is a publicly traded company, so they are required to maximize profits. Secondly intel is in some Hot Water for monopolistic practices and all of a sudden cutting prices to $50 a chip will not help them win their case. Third most companies don't want to start a price cutting war which could kill the industry, Intel Sells at $50 and AMD will have to sell at $45 etc.. and the winner will be the one who makes the cheapest chip, aka Not good for consumers. Also there is the issue of Bulk sales, to be competitive Intel will need to offer very good prices for bulk sales of chips say to a Dell or Apple, they want to incorage people buying these chips at bulk vs. 5 at a time for the home White Box manufacturer.
If something is so important that you feel the need to post it on the internet... It probably isn't that important.