In order to determine whether Intel has established its monopoly in the microprocessor industry and had subsequently used its dominant position to exercise power over the market, it is necessary to analyze the factors that contributed to Intel’s increased market share in the first place. Intel’s Annual Report published in 2007 reveals that it is one of the leading microprocessor manufacturing companies in terms of revenue generation. It was established in 1968, which has the company ample to time establish itself in the market as one of the pioneers of x86 microprocessor technology used in most computer systems around the world. Only AMD has proved to being its major competitor with only a negligible presence of other competitors. The lack of a sufficient number of competitors results in monopolization by a single, dominant entity which undermines the economic viability of services and goods. According to a definition (Blinder, William, Colton 212), it results in a lack of alternative products as market control is gained by a single supplier.
Intel was able to exercise its power over buyers and competitors due to its strong financial position and years of experience in the industry. The same factors accounted as barriers to entry for other competitors who could not hope to achieve the same level of technical expertise to manufacture microprocessors at the competitive prices offered by Intel. Moreover, the company developed software programs that resulted in the degraded performance of AMD microprocessors which eventually led customers to believe that AMD lacked in quality. The number of lawsuits filed against Intel for its violation of antitrust laws (Summary U.S. antitrust complaint against Intel) and its constant effort to reward companies in the form of rebate payments for choosing Intel as the exclusive supplier indicate that it tried to establish firm hold in the market by driving out other competitors like AMD. All these actions were carried out in deliberation.