Intel: New products must deliver 50% gross profit to get the green light
8 points by Scramblejams 4 weeks ago | 6 comments- jschveibinz 4 weeks agoI think this is a good threshold for a startup or lean small business, but perhaps a bit low for Intel? A 50% gross profit is basically like a 100% markup: the cost to make the product is doubled to get the sale price.
But that 50% gross profit remaining has to cover all of operations overhead--which includes G&A and R&D--and still leave a net profit > 5% for shareholders. Note that software products usually deliver in excess of 80% gross profit; and hardware products are 50% or more.
- insane_dreamer 4 weeks agoThis is not encouraging. Gross profit is the wrong metric to be "laser focused" on for long-term survival.
- 1oooqooq 4 weeks agothe logic conclusion is that they are not laser focused on long term survival.
- 1oooqooq 4 weeks ago
- PaulHoule 4 weeks agoSounds like a corporate suicide pact to me.
- melling 4 weeks agoWhat kind of margins does Nvidia make on silicon? AMD? I don’t think 50% is a lot in the semiconductor industry.
- almosthere 4 weeks agoor it turns them into aqui-mode for a while.
- melling 4 weeks ago
- 4 weeks ago