Because it so dominates its market, Intel can harvest fat profits. That enables Intel to plow billions into making even faster chips, which keeps competitors at bay. Last week, it announced its 13th plant even as other chipmakers halt new construction. Wall Street loves it. That makes Intel almost as valuable as the Big Three U.S. automakers combined.
Monopolies are never good for industry.
The high cost of PCs has become especially irksome to corporations. And rivals to Intel and Microsoft have seized on the opportunity to displace the PC on the desks of workers who don't need all of its bells and whistles. The network computer, pushed by computer maker Sun Microsystems and software giant Oracle, is low-cost and simple. It doesn't need Microsoft's bulky operating system or Intel's speedy chips. It is designed to connect to networks and pull down software when users need it.