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If this is really your impression of the industry, you must be really young. It’s not “long-moated”. Intel was in a similar situation when the Opteron was curre
by thedance 7y ago
If this is really your impression of the industry, you must be really young. It’s not “long-moated”. Intel was in a similar situation when the Opteron was current, and before they had to go head-to-head with Sun and IBM and before that nobody would even think of putting intel in a server at all. The period during which Intel’s products were the obviously superior choice lasted maybe 5-8 years at most. And it wasn’t some nefarious plot, either. Just good product.
- sneak 7y agoThe first computer I built myself was an 800MHz Athlon, so I am somewhat familiar with Intel’s history of competition. Moats don’t have to be malicious or nefarious. Sometimes there are just high barriers to entry to compete. See tractors with DRM, for instance. Apparently building tractors and a tractor repair/parts network is a very expensive undertaking.
- thedance 7y agoA moat implies barriers against new entrants, but none of the parties in the current market are new. They are all well within the moat.
- greglindahl 7y agoI'm pretty sure that the concept of a "moat" applies to more than new entrants. For example, this definition [1] refers to competitors, not new entrants. 1: https://www.investopedia.com/terms/e/economicmoat.asp https://www.investopedia.com/terms/e/economicmoat.asp