Are you saying that CPU's would NOT be cheaper if we had more competitors?
It's kind of hard for CPUs to actually be cheaper considering AMD is selling theirs at razor thin margins and thus losing money by the bucketloads. But to do otherwise would be to lose even more money.
I think CPUs is a rather bad analogy for that. Even if there was more competition, it isn't exactly like AMD could cut their prices much more without suffering even greater losses.
Competition only helps the consumer in a few cases. If it pushes technology developement for example. Or if you have a company or limited number of companies working together to fix prices such that margins for all companies involved stay stratosphericly high.
Too much competition could also ultimately hurt the consumer in the long run. Think of it this way.
Competition pushes developement. Money is needed for developement. Prices need to rise to fund developement. Breakthrough happens. But prices need to rise to fun further developement.
So in one sense the consumer is getting a better product right away (a Mercedes S class for example) but the price is so high that only a limited number of people can afford it.
Eventually, however, that will trickle down to your average consumer (Airbags that were first available on Mercedes S class for example).
You could basically the same same about the current Intel I7 platform. Phenomenal performance driving by competition. But doesn't really benefit the average consumer right aways as it's still relatively expensive. After all Intel still needs to recoup R&D costs as well as fund future R&D. And while they make a small profit on their Q series, that profit isn't as much due to having to compete with AMD.
If they had to rely solely on low margin parts then R&D would in turn suffer as there wouldn't be enough funding for "quick" developement.
Everything has a cost. You want fast technology advancement? Then you need a LOT of cash. Which means high margins. Which means you really don't have a choice but to price things quite high to recoup and fund further R&D.
I just don't get how people in general somehow expect a free lunch or think that things are cheap to develope.
Heck, I have some friends in the medical imaging business. The business was doing quite well by competing on price and making affordable medical imaging equipment. However, now that the economic recession is here, the company may go out of business because they priced their equipment TOO low and thus may not have the cash to survive a prolonged recession. BTW - most of those friends are now without a job...
Regards,
SB