end of a monopoly: intel's emerging rival Flashcards
(8 cards)
Why does Intel display features of a monopoly?
They are vertically integrated, controlling the full supply chain of its products from production to sales.
Also operates in a high-tech market with particularly large barriers to entry,
Considerable market control + accused of acting as a price setter
How many patents does Intel hold worldwide?
200,000 protecting its intellectual property from competition.
What does Intel’s rival AMD point out about the competitor?
That there were rising prices of Intel microprocessors in an industry where efficiency gains and technological advances should lead to falling prices.
How much has the price of an Intel microprocessor risen by? What has happened to Intel average price in the more competitive mobile computer market?
47% over a 7 year period.
In mobile computer market, the average price has fallen by 33% in the same 7 years.
What does Intel argue about their rising price of server prices?
Reflecting high consumer demand, but a 2007 study concluded that Intel earned more than $60 billion dollars of ‘monopoly profit’.
What was one method used in the past by Intel against AMD?
They paid hundreds of millions of dollars to computer manufacturers Dell, Acer and Lenovo to stop them from switching to AMD chips.
What happened to Intel’s dominance from 2018?
It began to reduce, falling from 80% to 60%.
What do some argue is the reason for Intel’s falling market share?
That they had become too reliant on market dominance and had failed to keep up with AMD’s pace of investment in R&D.
