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There are other worries. The Federal Trade Commission launched a second probe of Intel this fall. Though the firm has escaped with a clean bill of health in the past, its dominant market share may look like a fat bull's-eye to trustbusters. Intel's close relationship with Microsoft--tech insiders refer to a WinTel duopoly--does seem to make competition more difficult. Grove, for one, isn't slowing any plans because of the government. "We're very careful," he says, "and clean...
That's not to say the pace of technological change is slowing. In fact, you haven't seen anything yet. Companies like Intel, Microsoft, Compaq, Cisco Systems and Oracle have plenty more cyber stuff on their drawing boards. What's in question is how much of it they will sell, how soon and at what price. One obvious problem is Asia. Tech companies were doing a lot of business there before the region's economies imploded. Intel, for example, has been getting 28% of its annual revenue there and will surely feel a sting from the slowdown...
...part of the equation, and it's a jarring reality pretty much across the tech board. Success breeds imitators. Imitators flood the market with goods. Prices (and profits) come down. Again, take Intel. It supplies nearly 90% of the microprocessors in PCs worldwide--a more commanding grip than even Microsoft's stranglehold on PC operating systems. But to protect its position, Intel has cut semiconductor prices faster than anyone expected as rivals Cyrix and Advanced Micro Devices compete furiously to supply cheaper components for the $1,000 PCs now taking the world by storm. Intel's profit margin has eroded...
...Target: Microsoft Bill Gates is firing back at Justice Department lawyers who want to unbundle Windows 95 and Internet Explorer. TIME Online's special report has everything you need to know about the case...
...Target: Microsoft Bill Gates is firing back at Justice Department lawyers who want to unbundle Windows 95 and Internet Explorer. TIME Online's special report has everything you need to know about the case...