4 ms·
do you have a source for the 5% number? I mean, I agree that x86 servers are a low-margin business, but 5% is lower than I'd expect.
by lsc 13y ago
do you have a source for the 5% number? I mean, I agree that x86 servers are a low-margin business, but 5% is lower than I'd expect.
- mnglkhn2 13y agoI should have qualified that number right from the beginning as a back-of-the envelope estimation: If we assume a 10x multiple to profit and a 5bn revenue, it results in 5.4% margin. If we just say it was a 8x multiple, then it is 6.75% It goes to 7.7% margin if we make the multiple to be 7x