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 its
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
its core market.
All of that changed dramatically in late 1999, when AMD began
shipping the Athlon processor. 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 does to this 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 750 MHz or so. An entry-level Intel processor would
cost $200 or $250, and a high-end one (that might run at 1 GHz) 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, Intel had to fight for its life 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.