Apple's control of key materials: Materials like high-quality aluminum were purchased in such large quantities that Apple virtually cornered the market for certain materials. Because PC makers were not responding to threats like this, Microsoft feared PC players were falling further and further behind Apple.
Shortcomings of the Microsoft-Intel business model: Microsoft and Intel -- so-called "Wintel" -- sucked up much of the profit, leaving PC makers with limited resources to innovate.
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