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For those who remember, IBM was late to the market with 386-based systems because it had trouble managing the heat generated by the 386. This helped to end IBM's domination of the IBM-compatible personal computer space.
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IBM lost its dominance in the PC space because it got greedy. Specifically, when the PC industry started going to higher speed expansion busses (EISA), IBM decided that it was going to do its own thing and try to lock in its customers with Micro-Channel (MCA). In one stroke, it cut itself off from the vast majority of expansion cards, and expansion card manufacturers declined to manufacture MCA expansion cards in favour of EISA expansion cards. IBM's MCA systems also no longer had ISA cards (the "standard" 8 and 16 bit cards used by the majority of PCs (XT and AT) until the EISA and MCA busses showed up), additionally cutting off users with any investment in ISA cards (which could be used in EISA systems). IBM aldo patented most of critical technologies used in MCA, and wanted to charge add in card makers licensing fees. After a while, IBM stopped making desktop PCs all together, building only the Thinkpad line of laptops, which it ended up selling off to Lenovo.