Intel moves to beat the 'cheap as chips' trend

Intel Corp. currently dominates the $25 billion microprocessor industry. This successful and efficient company now controls 80% of the market share for personal computer chips. However, personal computers costing less than $1000 began to dominate the market. Therefore, demand for Pentium chips was severely reduced and Intel shares fell to $35.00 in mid-1998. Intel's leaders believe that new software applications will require high-powered personal computers. Also, Intel sees itself as the building-block supplier for the Internet economy.