Published: Mon, April 09, 2018
Science | By

Apple plans to ditch Intel and make own processors for Macs

Apple plans to ditch Intel and make own processors for Macs

The company is in the early stages of creating its own processors for the MacBook and iMac, which now run on Intel chips, according to unnamed sources speaking to Bloomberg on Monday.

The plan, reported by Bloomberg, has been rumoured for several years, as Apple has taken on more chip design for devices.

Rumors have surfaced that Apple will ditch Intel by 2020 and begin to equip their computers with their own company-made Mac processors.

At the same time, this decision will allow faster Apple to bring new features to all their products and stand out from competitors.

It's been long rumoured, but now it seems it really could happen: Apple really is planning to dump Intel in favour of its own processors for at least some Macs.

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

Apple has a reputation for tightly controlling all aspects of its line-up, from hardware to software, and making its own chips fits into that strategy.

Meanwhile, Michael McConnell, an analyst a Keybanc, told Fortune the move away from Apple should be "manageable" for Intel. Chips in the iPad, iPhone, Apple Watch and even Airpods are designed by Apple with help from Arm Holdings.

Bloomberg reports that the initiative "is still in early developmental stages", but is meant to bring Macs into the same unified architecture that allows all of Apple's other devices to work together "seamlessly".

Shares of Intel were down by 6 percent to $48.92, following the report, but added 0.1 percent to $48.97 in after-hours trading.

For Intel the news (if true) will certainly have an impact, as Bloomberg supply chain analysis estimates that Apple provides Intel with about 5 percent of its annual revenue. The latest MacBook Pro and iMac Pro include the co-processors. The company has had a virtual monopoly on the market for years, with the only serious competition coming from Advanced Micro Devices, better known as AMD.

And it should be noted that Apple's development of its own chip is not a new phenomenon. The Cupertino giant also makes its own chipsets for iPhones, iPads and Apple Watch devices.

You can view Apple's stock price and Intel's stock price here.

Apple a year ago sold 19 million Mac computers, accounting for about 7% of the overall PC market, Pitzer said. Its partnership with Apple has resulted to the Mac's success and an alliance with one of the top brands in electronics.

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