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That the very notion that a hardware monopoly, or even an oligopoly, will continue to own the market is archaic.
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Back then, I.B.M. was reaping enormous profits from its virtual monopoly in mainframe hardware and software, as Microsoft does today from its dominant positions in personal-computer operating systems and personal-productivity software like word processing and spreadsheets.
The innovation-choking monopoly that wireless carriers have on hardware, services and content especially in the U.S.– is starting to crack.
The innovation-choking monopoly that wireless carriers have on hardware, services and content--especially in the U.S. is starting to crack.
In the PC era hardware became a commodity and Microsoft established a lucrative monopoly centred on its proprietary operating system, Windows.
The new hardware may also raise more questions around IBM's monopoly of the mainframe business.
Microsoft is hoping for a replay of what happened in the PC market, where hardware became a commodity and Microsoft established an enormously profitable monopoly with its Windows software.
"By tying its operating system to Apple-branded hardware, Apple restrains trade in personal computers that run Mac OS X, collects monopoly rents on its Macintoshes, and monopolizes the market for 'premium computers,'" said Psystar's lawsuit, filed last Wednesday.
Microsoft kept most of the money with the de facto monopoly enjoyed by its Windows + Office combo, while it let hardware manufacturers race to the bottom (netbooks come to mind).
Shih's remarks indicate that companies making Android systems are wary of being cornered in the way that businesses making Windows hardware have been, where operating margins on commodity PC hardware can be less than 5% while Microsoft and Intel enjoy monopoly profits on the software and processor.
With CDMA technology a defacto monopoly for Qualcomm, the obvious solution would be to build the reference software stack on Qualcomm hardware.
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