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Microsoft Corp.

PC Market Trends and Controversies

Strategic Insights

— 1 min read

The personal computer market is experiencing significant trends, with PCs costing less than $1,000 accounting for 59 percent of all machines sold in November. The average price of personal computers sold was $992, according to PC Data Corp. Meanwhile, the market share of Intel, the dominant processor chip manufacturer, is shrinking. Advanced Micro Devices has taken the lead in the retail PC market for processor chips, while Intel's market share has declined to around 40 percent. Additionally, California-based Goldtouch Technologies has filed a lawsuit against Microsoft, alleging theft of trade secrets, patent infringements, and fraud related to the design of a new computer mouse.

Key Takeaways:

  • The personal computer market is shifting towards lower-priced PCs, with 59 percent of machines sold in November costing less than $1,000.
  • The average price of personal computers sold was $992, according to PC Data Corp.
  • Intel's market share in the retail PC market for processor chips has declined to around 40 percent.
  • Advanced Micro Devices has taken the lead in the retail PC market for processor chips.
  • Goldtouch Technologies has filed a lawsuit against Microsoft, alleging theft of trade secrets, patent infringements, and fraud related to the design of a computer mouse.
  • The lawsuit claims that Microsoft released its Intellimouse version in 1998, which was built using trade secrets divulged to the company by Goldtouch's founder, Mark Goldstein, during a confidential meeting in 1997.
  • The complaint alleges that Microsoft's mouse looks like Goldtouch's product, copies the slope of the mouse, and incorporates other features designed to promote comfort for the user.
  • Goldtouch has secured two patents for its mouse design.

Statistics:

  • 59 percent of all PCs sold in November cost less than $1,000 (Bloomberg News)
  • Average price of personal computers sold was $992 (PC Data Corp.)
  • Intel's market share in the retail PC market for processor chips has declined to around 40 percent (January 1999 issue of PC Computing)
  • 70 percent of all desktop PCs sold in the past contained Intel processors (January 1999 issue of PC Computing)
  • $1 billion in compensatory and punitive damages is the amount sought by Goldtouch Technologies in its lawsuit against Microsoft (lawsuit filed with the U.S. District Court in Texas)

Sources:

  • January 1999 issue of PC Computing
  • Bloomberg News
  • PC Data Corp.
  • Lawsuit filed by Goldtouch Technologies against Microsoft (U.S. District Court in Texas)

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