- Joined
- Sep 27, 2003
- Location
- Folding in Illinois
http://overclockers.com/articles1142/
Interesting article. I think its good that Dell is finally planning on using AMD CPUs in some of their systems. Good for AMD at least. Poor Intel has to consider that it might loose its contracts with Dell while worrying about Micro$oft and IBM teaming up on Xbox2 and possibly the PC business.
The one thing I don't understand about the whole article is how "Dell sucks up something like 20% of Intel's total production." equals "If Dell ever stopped buying, Intel's profits drop 60-70%." Lets say Intel makes $100 Million a year on their entire production. Thats saying if Dell stops buying that 20% of Intel production, that Intel's profit goes down 60-70% or $60-70 million. How does 20% of their production equal 60-70% of Intel's profits when Intel sells their CPUs to Dell at a discount since they buy in bulk? Thats saying that Intel makes only 40-50% of their money from the other 80% of the stuff they make. I think Ed has the numbers mixed up.
Interesting article. I think its good that Dell is finally planning on using AMD CPUs in some of their systems. Good for AMD at least. Poor Intel has to consider that it might loose its contracts with Dell while worrying about Micro$oft and IBM teaming up on Xbox2 and possibly the PC business.
The one thing I don't understand about the whole article is how "Dell sucks up something like 20% of Intel's total production." equals "If Dell ever stopped buying, Intel's profits drop 60-70%." Lets say Intel makes $100 Million a year on their entire production. Thats saying if Dell stops buying that 20% of Intel production, that Intel's profit goes down 60-70% or $60-70 million. How does 20% of their production equal 60-70% of Intel's profits when Intel sells their CPUs to Dell at a discount since they buy in bulk? Thats saying that Intel makes only 40-50% of their money from the other 80% of the stuff they make. I think Ed has the numbers mixed up.