Examines the development of the PC hardware industry over the period of two and a half decades. The open architecture of the IBM Personal Computer followed by the rapid appearance of clones drove a high degree of standardization and modularity in the industry, and the value was distributed along the value chain, depending on the level of competition and the ability to replace components at each level. On the hardware side, two sub-segments of the microprocessor and the graphics processor unit (GPU) … Read more »

Examines the development of the PC hardware industry over the period of two and a half decades. The open architecture of the IBM Personal Computer followed by the rapid appearance of clones drove a high degree of standardization and modularity in the industry, and the value was distributed along the value chain, depending on the level of competition and the ability to replace components at each level. On the hardware side, two sub-segments of the microprocessor and the graphics processor unit (GPU), ultimately the most valuable parts of the chain were. The GPU business was located in a duopoly with Nvidia and ATI Technologies Inc. (ATI). Intel had dominated the microprocessor segment, but Advanced Micro Devices (AMD) was consistently a thorn in Intel’s side. Addresses the prospects of the graphics function always integrated with the microprocessor on a single piece of silicon. AMD had just announced the acquisition of ATI and Paul Otellini, Intel CEO, is the question of what to do, confronted. Should he buy Nvidia, he should continue with its own internal graphics efforts, or should he listen to some of his customers and keep things separate?
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from
Willy Shih,
Elie Ofek
Source: Harvard Business School
25 pages.
Publication Date: Jun 29, 2007. Prod #: 607 136 PDF-ENG
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