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AMD on it’s current hot steak has gotten its gross profit margins to 43%, which would make the cost to manufacture a $300 part around $171. Two and a half time
by valuearb 6y ago
AMD on it’s current hot steak has gotten its gross profit margins to 43%, which would make the cost to manufacture a $300 part around $171.
Two and a half times higher cost to build a slower, more power hungry CPU is not actually very similar.
- mahkeiro 6y agoYeah using the gross margin of the whole company and applying it to a single product is going to provide a reliable figure...
- valuearb 6y agoIt’s how companies price their products. Is it perfect? No, but that’s why I used the word “around”. You can argue that this particular Ryzen has a higher gross margin, say 50%, and lower ASP than $300, but that only gets your cost down to what, $140? And with RAM costing extra.
- dannyw 6y agohow much of the $300 goes to the retailer? how much goes to the distributor?
- ant6n 6y agoHow much goes to R&D?
- btgeekboy 6y agoNot to mention I believe the RAM is included on the M1 SOC.