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Old Aug 4, 2003, 03:31 PM   #1
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tuphdc
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Default Why aren't there more hardware companies?

Computer hardware progresses all the time, yet it seems like only a few companies are the driving force.

AMD and Intel - in such a demanding market, why are there only 3 major companies (Apple too, and Via as well)?

ATi and nVidia - also an extremely demanding market, why is it only 2 companies have what it takes to push the industry? Matrox as well, more innovative. Are there like uber secret technologies that only Ati ans nVidia have?

Taiwan Semiconductor Manufacturing Company - Ok, so these guys do all the fancy work and develope newer and better fabrication processes. I'm not sure if IBM competes with these guys at all, but I'm sure the market overlaps a bit.

Anyway, there aren't enough companies out there for the numerous types of systems and hardware. I think harddrives and memory are fine, plenty of companies - but I suppose that they have standards to adhere to.......

itd be cool to choose from 4 or 5 video card manufacturers or cpu manufacturers
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Old Aug 4, 2003, 03:38 PM   #2
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Well, I assume COST is a major factor also....
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Old Aug 4, 2003, 03:41 PM   #3
tuphdc
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that doesnt sto car manufacturers, or vacuum cleaner companies (u'd be surprised how expensive they are), or electronic companies -everything from sony to pioneer to rca
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Old Aug 4, 2003, 03:49 PM   #4
thesavage
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Well it's too hard to get into the market now because of cost and because people are gonna only solely buy intel/athlon because of brand name. Also another factor is that many OEM manufacturers already have big deals with intel/amd making entry into the market VERY hard.
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Old Aug 4, 2003, 03:50 PM   #5
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Startup cost for a very small chip fabbing company is in the neighborhood of 160-250 million bucks. Nuff said.
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Old Aug 4, 2003, 06:05 PM   #6
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There used to be plenty of companies in the beginning, but as the market has matured you find that they have consolidated. This is largely driven by the costs, R&D costs are high in an industry where technology changes so rapidly, and if you get caught behind you can end up in a viscious cycle of not making enough money to pay for R&D. No R&D sees you drop further behind, so you get less revenue cos your products aren't as good anymore. Eventually you go bankrupt or someone takes you over.

The companies which are around today all have some sort of leadership, whether it be technology and innovation, or market leadership (eg Microsoft). Some like TSMC are simply cost leaders, they have scale so they can undercut rivals.
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Old Aug 4, 2003, 07:25 PM   #7
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