RE:GrinderSam, so I think we misunderstood each other in terms of gross sale versus gross profit!
So you are saying the company has stated the selling price to the connector partner would be in the $15- 20 price range!
What I am stating is referring to the gross profit, which is simply the item or product being sold minus the hard cost to produce.
So to achieve a $10 gross profit, the selling price needs to be $20 to achieve a 50%gross profit!
Raouf has stated the gross profit is between 55-60% on the Data Center chips, so to hit the 60% GP margin the company’s cost would be $8 per connector set leaving them with $12 in gross profit.
You can play around with the numbers to reach the 55-60% gross profit numbers Raouf talks about using selling prices between $15-20 dollars.....
I think we can agree on these figures now as One is a gross sale and the other is a resulting gross profit! From the sale.