Because of history, without competition , intel can charge (and has) whatever they want, for very little performance improvement.
Competition is what makes computers better and better, without competition innovation might not be invested it.
But on a serious note, I don't think the consumers would allow themselves to be taken advantage of this way again, if low end PC is costing $400 now, no one will buy a low end for $1000 in 2 years.
The prices of high end cpus, I don't think would go up, but low end cpus will.
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