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Windows Magazine: Intel in Slide

Apr 02, 1999, 17:24 (0 Talkback[s])
(Other stories by Mike Elgan)

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"Labeled the "amazing profit machine" by Forbes magazine, Intel has a long history of industry domination and spectacular profit margins. Intel chairman Andy Grove was Time's 1997 Man of the Year. As recently as this January, Intel announced record earnings and revenues. But those halcyon days are gone. Or are they?"

"The secret to Intel's "profit machine" is to rapidly churn out ever-faster new chips in high volume and charge a bundle for them. But chip performance now exceeds the demands of Windows 98. For many business users, cheaper alternatives are almost as good as pricey Pentium IIIs. (See our review of PIII- and AMD K6-3-based PCs in this issue.)"

"Intel's profitable marriage with Microsoft is clearly on the rocks-each partner keeps jumping into bed with other companies. For example, Intel is flirting with operating systems like Linux and Be. Microsoft, meanwhile, supports non-Intel chips in Windows CE. In the near future, look for the two giants to clash over standards, alliances and overlapping markets."

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