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The Future of Technology Management and the Business Environment: Lessons on Innovation, Disruption, and Strategy Execution by Alfred A. Marcus

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9. Missing the Boat on Mobile Technology: Intel and AMD

In 2014, Intel enjoyed the world’s largest market share in all segments of the global microprocessor market—servers, laptops, and desktops.1 It controlled close to 98 percent of the server market, more than 90 percent of the laptop market, and over 80 percent of the desktop market. In the desktop market, where AMD, its rival, was most competitive, Intel’s gross margins were over 60 percent, whereas AMD had gross margins of 30 percent. Since 1976, Intel and AMD had cross-licensing agreements, which stipulated that the two companies could use each other’s patents. For years the two companies had been battling it out for dominance in the microprocessor market. (See the section at the end of ...

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