Next year will be challenging for Intel as it fends off accusations of monopolistic behavior while trying to establish a larger presence in the mobile and graphics segments.
Intel suffered big setbacks this year, delaying key products like the Larrabee graphics processor and attracting the attention of governments worldwide for alleged anticompetitive behavior. Intel’s processors go into more than 80% of PCs worldwide, and the chip giant has battled accusations of using its market position to shut out competitors.
The European Commission in May found Intel guilty of monopolistic behavior, fining the chip maker $1.45 billion after finding the company guilty of giving rebates to PC makers in exchange for buying its microprocessors in bulk. The New York attorney general and the U.S. Federal Trade Commission recently filed antitrust cases, accusing Intel of illegally using its market position to stifle competition and depriving consumers of choice in the microprocessor industry.
The increased scrutiny could impact business dealings for Intel in the short term, analysts said.
Special report: Looking back at 2009, ahead to 2010
Special report: Looking back at 2009, ahead to 2010
"It’s always a distraction when you have a team of lawyers breathing down your neck," said Nathan Brookwood, principal analyst at Insight 64. "When you have a dominant position in the market, there are a variety of constraints that the legal system places on what you can do to maintain the position and how you behave."
Top executives may spend more time poring over legal issues, but Intel has a strong structure in place to handle day-to-day issues, Brookwood said. Intel has strong PC and server chip sales, which should continue as it releases chips and executes its manufacturing strategy.
