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...Intel's competitors. If Grove is tough on people inside Intel, he is brutal with competition. Intel's current victims are Advanced Micro Devices and National Semiconductor, but no single firm poses much of a threat. Intel, says AMD CEO Jerry Sanders, makes it nearly impossible to get access to the big customers--Compaq, Dell, Gateway--that make for economies of scale. "That's where Intel makes it tough," says Sanders, another Fairchild alum. "In my view Intel goes right to the edge--and sometimes over it--to exclude people from providing chips to those guys...
Grove has so effectively squashed the competition that his biggest worry isn't the rumblings of AMD but the strategic risk of a slowing PC market. The hottest-selling PCs this year have been dirt-cheap, sub-$1,000 models. Growth there could wreck Intel's business model. Says Drew Peck, an analyst at Cowen & Co.: "You can't sell a $500 processor in a $1,000 PC." And though cheap PCs are a tiny part of the overall market--businesses generally buy pricier PCs--Intel may be heading into a sea change. Intel's buoyant stock...
...Enter AMD and Cyrix with their successful Pentium-killers. Thanks to shrewd microcode licensing and intensive R&D work, these companies have developed fifth- and sixth-generation CPUs to compete with the best that Intel's got to offer. Low prices on their competitors' products have led Intel to slash prices on Pentiums by almost 50 percent this year...
...Intel is not the only micro-processor game in town. Competitors Cyrix and Advacnced Micro Devices (AMD) both have plans to unveil new, more powerful chips that they hope can compete with Intel...
Cyrix's latest chip release is the M2. It will be MMX-compatible and offers consumers a lower-priced, alternative to Intel. In addition, AMD will be releasing its MMX-compatible K6 chip in the coming months...