Apple plans to ditch Intel and make own processors for Macs

Daniel Fowler
April 9, 2018

The chipmaker's shares tumbled 6.1% on Monday after the news report was first posted. According to a report by Bloomberg published yesterday, April 2, Apple is considering replacing the Intel chips in its Mac devices with its own indigenously manufactured chip hardware.

And it should be noted that Apple's development of its own chip is not a new phenomenon.

While Intel issued patches for most devices, security experts said the flaws were more hard to deal with because they involved hardware rather than software. A Bloomberg supply chain survey reveals that Apple accounts for nearly 5 percent of Intel's entire revenue.

The advantages for such a strategy are pretty clear: not only would Apple no longer be reliant on a third party for parts of its hardware, but a shared architecture between devices would make cross-compatibility between devices that bit more seamless.

Apple has been one of Intel's major partners since 2005 when Steve Jobs announced the move to Intel chips, abandoning chips co-developed by IBM and Motorola, with former Intel Chief Executive Officer Paul Otellini on stage.

With its own chips, Apple would be forced to work on the new Intel chips before being able to release updated Macs and the company would be able to integrate new features on a faster schedule.

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Apple didn't say anything in reaction and so Intel said that "We don't comment on speculation about our customers".

It's even mentioned that it will not stop with just processors as Apple wants to tie everything together, a larger project with code name Kalamata learns that Apple wants all its devices to work seamlessly together, so besides Macs also the iPhones and iPads. An Apple with the capability to manufacturer processing chips for its own products can also start providing them to other companies.

Companies like Dell, HP, Lenovo and Asus all use Intel chips in their laptops and desktops.

According to a new report from DigiTimes, future Apple Watch models and an Augmented Reality device will sport MicroLED displays, measuring in at 1.4 inches and 0.8 inches respectively. The company's A-series of processors, now capped by the A11 Bionic chips used in the iPhones 8, 8 Plus and X, are all designed by the company for specific purposes, and based on an architecture licensed from British firm ARM.

Intel reportedly receives around five per cent of its annual revenue from Apple. Apple later claimed to have fixed the Macbook battery life problem.

Intel probably will generate about $2.7 billion from Mac chip sales in 2019, or about 4% of its revenue. The institutional investor held 1.52 million shares of the computer manufacturing company at the end of 2017Q4, valued at $257.23M, up from 1.05 million at the end of the previous reported quarter.

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