1. high end users already served; move to cheaper $500 computers which won't allow for big mark-ups henceforth--though of course there may be a new bout of superprofits for software vendors as pc's proliferate.
2. Intel now facing competition, though from mostly American companies (via excepted)/ Profit margins will be no more exceptional in the microchip business than the potato chip business--"the MPU business won't be worth competing for"! _____________________________
True enough. Intel in litigation with Via now over dumping. Shows that catch-up has been a truly important development in the last two-three years. I'll need to look into this foundary/fabless design company div of labor.
Points 1 and 2 seem however to ignore the next round of "high value added" product: system on a chip integration by which total chip count will be reduced. Should be a burgeoning market in telecom (hardware and software) and appliance intelligence--big future market not just internet via pc. Intel and American intel-like companies already in the process of positioning themselves in new markets; some japanese and european companies will of course have a presence. But Japan still not exited DRAM market, really going offshore through joint agreements. European firms on the whole remain too conglomerated. Siemens, Phillips, Thompson still into everything from toasters to nuclear power plants. Erikson could have a substantial presence. Europeans will be in the market, no doubt.
3. microprocessor industry can't easily be cartelised.
Been a bout of joint ventures though including across national boundaries.
4. a new broader question of my own: do any technology monopolies enjoy superprofits? Superior machines can be used by the tech using industries to produce greater profits even when they are bought at (temporary) monopoly prices. Galbraith argues that the victors in the advanced capital goods industries are like lottery winners (both Galbraith Sr and Baran/Sweezy don't pinpoint this real source of monopoly profit in advanced capitalism); that's why it does matter whether a country exports processors instead of pringles.
yrs, rakesh