Examines the evolution of the PC hardware industry for two and a half decades. Open architecture design IBM Personal Computer and then the rapid emergence of clones went high level of standardization and modularity in the industry, and the cost 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 of the two-component segments, CPU and graphics processing unit (GPU), eventually became the most valuable part of the chain. In the business-GPU settled in a duopoly with Nvidia, Inc and ATI Technologies (ATI). Intel dominated the microprocessor segment, and Advanced Micro Devices (AMD) has been consistently a thorn in the side of Intel. Addresses prospects graphics functions are integrated with the CPU on the same piece of silicon. AMD has just announced the acquisition of ATI and Intel Paul Otellini, CEO of Intel, is faced with the question of what he should do. Should he buy Nvidia, if it continues its internal efforts graphics, or should he listen to some of his customers and keep things separate? "Hide
by Willy Shih, Eli Ofek Source: Harvard Business School 25 pages. Publication Date: June 29, 2007. Prod. #: 607136-PDF-ENG
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