Originally Posted by
Stewie007
No he doesn't know that, because it isn't true. According to AMD's most recent Quarterly Filing, the APUs represent a lower cost product. Its in the footnotes. Manufacturing processes are never black and white. Not only do the APUs represent a lower cost product, but higher volume of sales.
Additionally, lets say that you are correct and both products cost the exact same in variable costs. You sell 10,000 of your low end, and 1000 of your high end. The low end product sells for 100, and the high volume for 250. Your revenues are 1,000,000 and 250,000 respectively. So, we're back to square one. Even if you were correct and cost is the same for both (which it is not), you still are not making that much on your high end chips.
In general, the less expensive the product, the higher the volume of sales. In order for the high volume products in my example to bring in the same revenues, they would have to sell for ten times as much given a 90/10 mix. Or For the same price it would have to be 60/40 for mainstream/high end respectively.