Until
late 1999, Intel had the desktop
processor market largely to itself. There were competing incompatible
systems such as the Apple Mac, based on processors from Motorola,
IBM, and others, but those systems sold in relatively small numbers.
Some companies, including Cyrix, IDT, Harris, and AMD itself, made
Intel-compatible processors, but those were invariably a step behind
Intel's flagship processors. When those
companies—which Intel calls
"imitators"—were producing
enhanced 286s, Intel was already shipping the 386 in volume. When the
imitators began producing enhanced 386-compatible processors, Intel
had already begun shipping the 486, and so on. Each time Cyrix, AMD,
and the others got a step up, Intel would turn around and release the
next-generation processor. As a result, these other
companies' processors sold at low prices and were
used largely in low-end systems. No one could compete with Intel in
their core market.
All of that changed dramatically in late 1999, when AMD began
shipping a processor called the Athlon. The Athlon
didn't just match the best Intel processors. It was
faster than the best Intel could produce, and was in many respects a
more sophisticated processor. Intel had a fight on its hands, and
it's remained so to the present day.
If you ever take a moment to appreciate how much processor you can
get for so little money nowadays, give thanks to AMD. Without AMD,
we'd all still be running sixth-generation Intel
processors at 500 MHz or so. An entry-level Intel processor would
cost $200 or $250, and a high-end one (that might run at 750 MHz)
would probably cost $1,000 or more. The presence of AMD as a worthy
competitor meant that Intel could no longer play the game of
releasing faster processors in dribs and drabs at very high prices.
Instead, they had to fight for their lives by shipping faster and
faster processors at lower and lower prices. We all have AMD to thank
for that, and Intel should thank AMD as well. Although
we're sure Intel wishes AMD would just disappear
(and vice versa), the fact is that the competition has made both
Intel and AMD better companies, as well as providing the obvious
benefits to us, the users.