----- Original Message -----
From: "Mark Dodge" <[EMAIL PROTECTED]>
To: "'The Hardware List'" <[email protected]>
Sent: Friday, April 28, 2006 9:29 PM
Subject: RE: [H] Intel really starting to feel AMD's bite.
Doesn't this sound like Intel's CPU prices are going to be cut drastically
to reduce that inventory???
Intel is simply losing the low end computer war. I am seeing Compaq's with
AMD Sempron's now. For years we low volume OEM's have been subsidizing Dell
and the other large computer manufacturers.
Is there any way they could sell CPU's to Dell for $20.00 if they did not
charge us low volume OEM's $100.00 per CPU?
Oh, I am supposed to prove Dell pays only $20.00 for a CPU and perhaps less
for Windows Home OEM? This is easy. Just add up these 8 components in the
price of a $300.00 to $500.00 name brand computer.
Case
Motherboard
CPU
Memory
Modem
Hard drive
DVD-CDR/W
Windows XP Home OEM
There simply is not enough wiggle room there for them to pay any more than
$20.00 for a CPU and for Windows XP Home OEM.
The only way Intel can cut prices is to pass those cuts on as increases to
us smaller OEM's who are already paying for your Dells and if they do this
and put us out of business, then you will pay the true costs to build your
Dells. This is an option. If they do this, look out for the end of the cheap
Dells. Be prepared to pay from $600.00 to $1000.00 for your Dells and other
name brands if we quit subsidizing them for you.
Chuck
