How Competition Benefits Intel and the World — TechVirtuosity
The Struggles of Being a Leader
While Intel hasn’t really been a monopoly, they continue to have a large market share. Microsoft learned the hard way that being in control often comes with consequences. However, Intel being a leader in this industry also puts extra responsibility on them.
We’ll be focusing on how Intel adapted to holding the largest share, and how it helped their company!
Intel Doesn’t Innovate When Left Alone
What I mean by this is that they don’t focus on improving much. Yes, they continue releasing new products, but only in steps with fractional improvements.
This was the case for most of the last eight years or so. AMD failed to provide competition which left Intel free to slowly innovate. Time is a very bad thing for a tech company!
Innovating can Come From Competing
As proven in the past between tech companies, when someone releases something new the other followers. When AMD started releasing Ryzen products, Intel responded with price cuts and their i9 processors!
We started to see performance jumps that we haven’t seen in a long time. The new products arriving to the market became game changers for both consumers and professionals. This was a very good thing!
Intel Isn’t a bad Company!
Often when we see a major company slowing down in progress, we blame the company. But let’s be honest for a moment here. If you have a successful company with a great product and no competition, why not keep selling what is clearly making money?
This is why we have a slowdown in progress, whether it’s Microsoft, NVIDIA or Intel doing it. They all need competition to strive!
How we Respond to Monopolies
I mentioned Microsoft above because they are an example of what happens. They did great and excelled but ultimately they became a monopoly. This caused legal problems because monopolies are viewed as crushing innovation and ideas.
While it’s true about monopolies crushing competition, that’s not in every case. But we did start to see some of that with companies that make processors.
Intel’s Solution to Avoid Criticism
Microsoft took the wrong approach but Intel did excellent, because AMD still existed. In the end, tech companies don’t see it as a good thing to own the entire market share.
Between AMD and Intel we see around a 20%/80% divide, workable to avoid criticism! They thought they could slide by holding most the market while keeping consumers happy and it worked (for a while!).
This was a great method to keep legal battles away while profiting. However, the lack of a threat slowed their progress and that’s where they failed!
Criticism for Slow Progress
Sadly, their plan to keep consumers happy went away when their competition arrived. Ryzen came in and left consumers with a cheaper alternative and comparable performance.
This was great for consumers who wanted choices but not so great for Intel. They lacked a product to compete! This left many consumers criticizing their approach.
It tends to look bad when a larger more successful company gets beaten with less funding!
Firing Back at Competitors
Luckily, Intel changed their strategy. Regarding last year and the start of this year, we can clearly see jumps in performance. As I mentioned above, i9 processors have arrived and they pack a punch!
Not only do we see completely new products but several are being released in a short period of time.
Why Companies Should Help Each Other
Not only should we hope for this as consumers, but businesses stand to benefit too! What’s interesting is that AMD and Intel have teamed up for certain products, despite being competitors.
While we see those two companies working together to produce a product, we also see advancements being made at the same time. It’s great for everyone!
Just imagine a world where all tech companies brought their ideas together! It would be the start of a new generation that we haven’t previously seen.
Understanding the Balance for Profit
This is where things start to get difficult. Monopolies are bad, yet profit is required, and yet again to innovate you need those funds. This is a real struggle for several larger companies.
Do you eliminate your competition but then accept the penalties? Should you even take that risk when the legal system prohibits it in some cases? These are serious issues that consumers are usually indirectly involved in.
We all want innovation but that requires a certain amount of funding or market domination. It’s a struggle that impacts what we pay for what we get!
Why we Should Respect Their Difficulties
As I mentioned above, they need to make money. I’m not saying that we should go out there and accept everything a company says. Obviously, charging us for old technology because of a lack of competition, isn’t the right approach!
We should try to respect the difficulties they face because someone has to take the criticism. There is a risk when funding and researching something that might not pay off!
We should have understanding but also reasonable objections to unfair pricing. Companies should also understand that not everyone is rich!
Competition Helps Everyone, Including Intel
For all of the reasons listed above, we see that competition is good. Whether it’s a large company or a small one, it helps everyone to push forward. It causes companies to offer products that are better while directly competing with each other.
Ultimately, choice as a consumer is important. Having variety in what we can purchase allows everyone to benefit. This is a good thing!
Some professionals may want $1,000 processors, but some people only want to spend $150. Neither choice is wrong, but we need competition to get more performance for our dollars spent!
Keeping Hope for a Better Intel!
Hopefully as we see more AMD products we’ll continue to see Intel releasing more competitively priced options. It’s already been great to see the changes they’re making, let’s hope that AMD remains competitive in the future. What do you think? Is competition good or bad in your opinion?
Originally published at https://techvirtuosity.com on June 1, 2019.