I've read some information that indicated that with the timing of the release of those AMD financials they were deducted for on-hand inventory of 6870/6850 cards that were being stockpiled for release.
Ive heard things like tax-evasion, paying for research to the cpus (apus) since they have grafics cards in them.
anyways Im pretty sure that:
1) size does directly correlate sales prices/profits.
2) selling 25million grafics cards (90% market share) will make you money (unless your selling big chips for less than it costs to make them).
3) nvidia is loseing money on its discreat GPU sales, and its tegra. The thing that nvidia has that makes them money is their proffesional cards sales (but their profits here, are not enough to cover their GPU losses + tegra losses). And for the last 3 or 4 quarters overall Nvidia has been loseing tons of money (not makeing profits).
I think its almost impossible to guesstimate the business model of Nvidia or AMD off of knowing the die size. We know the same dies are used in workstation products that help pay for the cost of a wafer.
Consider trying to guesstimate how a newspaper turns a profit. The cost of the paper alone, never mind the ink, presses and persons to manufacture it every day. Are MANY times the 1 dollar cost. Its obviously the advertising which is where most actual profit comes from. Newspaper page size is directly related to profit. A smaller (pages) newspaper means less profit.
Funny how things work, lol
I'm also not convinced that die size - directly correlates to whether my favorite graphic card maker can make profits and continue to grow and invent.
Wall street is puzzled by recent AMD earnings or
lack thereof.
that is the craziest annology Ive ever heard for chip sizes being big = more profits.
Im sorry but a crafics card isnt a news papir... in this world waffers have a given price (costly), and the bigger the chip => the smaller the yields => the higher you would need to price your product.
thats all fair and good, no reason that cant work out.
however heres the kicker.... if your competitor has smaller chips with same performance in a market (pc gamers), then if your priced performance vs theirs, your makeing less than them.
amd can price their cards to the point where they only profit 1-2$ us dollar pr card sold = amd makes little money on their financal reports. However nvidia matching the competitors cards in price/performance would then be loseing money each time they sold a card that matches up to the competitors.
now throw in a price war, where a 255mm2 (6870) chip is fighting a 529mm2 (470) chip, and you ll see nvidia is bound to be loseing more money this quarter than the last 3 or so.
Also its likely to stay this way, with nvidia far behinde in performance/mm2, so they cant make the same profits pr grafics card sold that amd can. This wont change until the 28nm are introduced... so it ll be like a year from now until nvidia has a chance to make money on their GPU sales to non perfessional market.
Luckly nvidia has alot of money in the bank... it might have to liqudate some stuff and sell some things to free up cash. 1 year from now nvidia most likely wont have as much money in the bank though.