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These days, all everyone seems to be talking about is the browser wars between Microsoft and Netscape, and the antitrust case between MS and the DOJ. But that's all software-related. It's quite interesting how Intel seems to be the only near-monopoly to not be under a huge probe by the DOJ.
Ironically, it might have been because of news that AMD and Compaq had signed a deal, and that Cyrix has now settled its disputes with Intel, that Intel is not under a federal probe. But it probably should me.
Intel, as you probably already know, owns just about 80 percent of the microprocessor market. It also just about forces OEMs (Original Equipment Manufacturers) to use its chips--what else would explain why OEMs use P55C (Pentium MMX) chips instead of technically superior and cheaper sixth-generation Cyrix or AMD chips?
For example, let's take a major OEM--such as Dell. These big OEMs haven't used clone manufacturers chips for years--and they had their excuses. They complained that reliability was rocky. They complained that the plants would not be able to meet demand.
Fine. But those are their only excuses. In all other factors--speed included--Intel's competitors match or outdo the comparitive Intel chip. So the real reason these companies are not switching is Intel. (Unless these companies CEOs are dumb--which I doubt.)
Just look at Intel's major chips today, and its competitors'. The Pentium MMX gets swamped by the K6 and 6X86MX, while the Pentium II gets killed by a similar megahertz PowerPC G3.
What's keeping the major OEMs (except for IBM and Compaq, and then they only use AMD's or Cyrix's chips for low-end machines) from joining the low-end OEM fray, which has embraced AMD's K6? A few reasons include Intel using its silly Intel Inside logo to promote its products. The logo is just about as foolish as S3's S3D marketing ploy last year.
However, for using this logo, OEMs get bucks. Not using it will cost the OEM; what better reward than money?
Another reason is that if OEMs don't exclusively use Intel's chips, they catch Intel's wrath. This means the OEMs get less favorable treatment from the microprocessor giant, not to mention bad (compared to similarly-sized OEMs) prices. This is especially effective in scaring off some large OEMs.
The biggest reason, though, may be because of us, the consumer. We refuse to accept any microprocessors not made by the leading manufacturer, even if the chips have known bugs in them (remember the NexGen chip and the flawed Pentiums?). So the solution is, to stop this monopoly from getting any bigger than it should, is for us to buy computers that fit us right. Pentium MMXs continue to be the big sellers on the market. We should have bought none of those--we should have demanded a K6 or maybe a WinChip C6.
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