DrMrLordX
Lifer
- Apr 27, 2000
- 21,637
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Gross margins do not include R&D expenses, neither does PFO.
They don't? That's . . . interesting. Learn something new every day.
Look at AMD's and Nvidia's gross margins on graphics products, if it is as simple as you portend then their GM situation would beg further inquiry.
For Intel (and everyone else) the gross margins will include software/driver development/maintenance costs (pro-rated against volume of larrabee chips of course) plus shipping/distribution. Plus the GPU alone isn't what makes a graphics card. Someone has to assemble the card, PCB/power components/memory, package and ship plus warranty and support.
Do you think Intel's gross margins for their CPU's entail nothing more than merely doubling the silicon production cost to arrive at the retail price?
No, I was sort of wrapping up all the production costs, from the wafer to the packaging and shipping and so forth, into one number. It is interesting that you bring up driver development costs, which are easy enough to overlook. I would have assumed that initial driver development would have been covered under R&D, but that's assumptions for you.
That still doesn't bring us any closer to an actual cost-of-production/shipping/warranty support/etc. for Larrabee Prime. Something tells me that such data will not be readily available.