Intel Crashes: Apple To Start Using Own Mac Chips, Moving Away From Intel

Intel stock was already having a bad day, down over 5%, when it suddenly tumbled even lower, plunging as much as 8.8%, its biggest slide in over 2 years, following a Bloomberg report that Apple is planning to use its own chips in Mac computers beginning as early as 2020, and replacing processors from its existing partner, Intel.

According to Bloomberg, the initiative, code named Kalamata, is still in the early developmental stages, but comes as part of a larger strategy to make all of Apple’s devices - including Macs, iPhones, and iPads - work more similarly and seamlessly together, said the people, who asked not to be identified discussing private information. The project, which executives have approved, will likely result in a multi-step transition.

The shift would also allow Cupertino, California-based Apple to more quickly bring new features to all of its products and differentiate them from the competition. Using its own main chips would make Apple the only major PC maker to use its own processors. Dell Technologies Inc., HP Inc., Lenovo Group Ltd., and Asustek Computer Inc. use Intel chips.

By using its own chips, Apple would be able to more tightly integrate new hardware and software, potentially resulting in systems with better battery life -- similar to iPads, which use Apple chips.

Needless to say, the shift would be a crushing blow to Intel, "whose partnership helped revive Apple’s Mac success and linked the chipmaker to one of the leading brands in electronics." Apple provides Intel with about 5 percent of its annual revenue, according to Bloomberg supply chain analysis.

Meanwhile, as QTRResearch notes, it's not as though the loss of Apple can be made up with growth from other Windows-based PCs which, as the Gartner table below shows.

While Bloomberg hedges that Apple could still theoretically abandon or delay the switch, judging by the stock reaction that's not too likely.

Comments

Endgame Napoleon DownWithYogaPants Mon, 04/02/2018 - 15:01 Permalink

When everything works better together, maybe, Apple can get into the enterprise market, offering a product that lasts longer with more ease-of-use to streamline training in America’s churn-mobile job market of low-wage, temporary, high-turnover, part-time and 1099-gig jobs.

I just wish Apple made more products in the USA, not just the MacBook Pro, but what are the chances that Intel manufactures anything here?

Oh, never mind, half of Intel’s workforce is made up of US employees, and they planned a $7 billion investment in an Arizona plant, scheduled to employ 3,000 Americans, although their plans might change, especially since a previously planned facility in Oregon went that way after a prior plunge in earnings.  

https://www.google.com/amp/s/www.wired.com/2017/02/intels-new-factory-i…

 

In reply to by DownWithYogaPants

AGuy Endgame Napoleon Mon, 04/02/2018 - 17:12 Permalink

"When everything works better together, maybe, Apple can get into the enterprise market,"

Ha! thats been a pipe dream since Apple introduced the APPLE 3 in 1982. Apple doesn't get the enterprise market. If any player replaces Microsoft, its going to be Linux. The issue with Linux is the lack of a enterprise level Desktop/GUI interface. As Microsoft continues to turn out crappy desktop OS, sooner or later Linux will have a better system. Its not that Linux is getting better, its just not getting worse, unlike Windows does every year. Pretty Soon Windows-OS will be like the Microsoft Bob released in the 1990's: utter Crap and unusable.

In reply to by Endgame Napoleon

flapdoodle DownWithYogaPants Mon, 04/02/2018 - 17:15 Permalink

I'm no fan of Intel given their being taken over by the Ziocons and the Talpiot plan of moving chip design to Haifa - but I must say this move by Apple smacks me as being the same mistake SUN Microsystems made - grant you the SPARC CPU architecture was very, very good, but SUN made the mistake of thinking their business was CPUs - it wasn't, and eventually they fell behind, and then they disappeared - they went to Intel but it wasn't enough.

Just wait for an economic downturn where snowflakes start turning in their iPhones for cheaper Xiaomi knockoffs... see if Apple can afford cutting edge CPU design then for something as niche as a macbook...

In reply to by DownWithYogaPants

44magnum snblitz Mon, 04/02/2018 - 16:38 Permalink

Fucking Apples business plan is to make their shit obsolete every couple of years so the dumb fucks who buy Ishitphone or Crapple MACs have to keep buying if they want to upgrade. Those new chips of course will not be backward compatible with the current MAC OS. So when the new chips launch there will of course be a new OS if you have an intel chip in your MAC and you want to upgrade the OS. Go buy a new MAC! Don't forget Apple has a monopoly on their Hardware and HOW do you get the dumb fucks to buy your hardware? Obsolete the old stuff. That was the ONLY reason for degrading their fucking Ishitphones so you go buy new fucking hardware. 

 

In reply to by snblitz

AGuy 44magnum Mon, 04/02/2018 - 17:16 Permalink

" So when the new chips launch there will of course be a new OS if you have an intel chip in your MAC and you want to upgrade the OS. Go buy a new MAC!"

Worse, you have to replace all your software too! Imagine have $2K of software that become useless when you replace your Mac. I remember Graphic Arts companies have to buy used Macs so they could continue to use there very expensive software licenses. Some those software packages cost $5K to $10K for a single seat, and they had dozens of licenses, one for each worker using it.

In reply to by 44magnum

Endgame Napoleon east of eden Mon, 04/02/2018 - 15:08 Permalink

Privacy is important to consumers, as is smooth performance, battery life and, for many of us, aesthetics. Regardless of whether people regard that as shallow, many of us are concerned with pure design. Many of us love Apple due to their perfectionism in designing and upgrading the product, not due to political stances, but underemployed America needs for Apple to put more jobs in this country, helping to justify the higher price point for their products. 

In reply to by east of eden

AGuy Cognitive Dissonance Mon, 04/02/2018 - 17:05 Permalink

" guess Apple didn’t appreciate Intel building back doors into their CPUs."

Yawn, Apple already traveled down that road with its own version of PowerPC Chips in the 1990s. Sticking with intel or at least x86 processors is the smart think to do, because there are a lot of development software as well as Peripheral & Bus chips available for x86 processors. Apple will waste a lot of time and money trying to roll its own. Think Graphics chips & drivers, PCIe bus, USB, etc. Consider that Apple invents its own data bus once every decade which quickly falls into obsolesce: AppleTalk, Firewire, Thunderbolt. No one except Apple ever develops products for these data buses and it hassles users having to buy special & expensive cables or adapters. Apple should stick to industry standard to avoid fleecing its customers and driving them crazy.

In reply to by Cognitive Dissonance

NVTRIC ParkAveFlasher Mon, 04/02/2018 - 14:05 Permalink

Apple has not been Apple since they moved to Intel chips.  They have been a PC with a fucking Apple logo and BIOS.

 

Since IBM / Motorola will not be making the chips, you can bet Apple will fuck this up three ways from Sunday.  This is just a marketing ploy to capture or recapture the fucking idiots that think they are different because they use a Mac instead of a PC.

 

You are different all right.  Go pick up your trophy at the end of the dark alley good sir! 

In reply to by ParkAveFlasher

nidaar Mon, 04/02/2018 - 13:55 Permalink

Intel has been due for a disruption for a long while now. Especially when chip architectures became commodity and plants moved to far east...

GeezerGeek Consuelo Mon, 04/02/2018 - 14:18 Permalink

Unless Apple started several years back, there is no way (in my opinion) that they can design and produce a decent CPU in two years. They could, perhaps, adopt some ARM design, but those haven't been put in PC-like systems yet. Look how many years passed before AMD was able to overcome the lead Intel had when they introduced the Core 2 series. And AMD was already good at creating CPUs.

Next, what will Apple do for a GPU? Sell systems with separate GPUs? Put them on the motherboards? The only other possibility I see is having China (PRC) suddenly come out with a CPU, but who outside of China would buy anything electronic from China? If you thought the NSA's back doors are bad, imagine what Beijing would require.

Not holding my breath.

In reply to by Consuelo

Oliver Jones GeezerGeek Mon, 04/02/2018 - 17:18 Permalink

I first started using ARM on the desktop in 1989. Yes, 1989 - on the Acorn Archimedes 410, which our school bought a shedload of, when they came out. I was also the school's network administrator when I was in the 6th Form: I looked after a 10-station A3000 network, based on Econet (an ancient, 250Kb serial bus-based system.) The ARM2 chips at the time only ran at 8MHz, but did 4 MIPS, which was quite snappy for the day - and made even the 486 in the corner (reserved for Quark Xpress) look rather pedestrian. Most of the Archimedes machines ran productivity software quite happily with only 1 or 2 megabytes of memory - 4MB was considered extravagant.

To be honest, the future belongs to the first vendor who can put an OS together that doesn't have huge quantities of bloat. RISC OS 2 (the Archimedes OS) fit in a 2MB ROM, and it booted from power-on to a usable desktop in less than one second. Later versions of the OS attracted criticism for bloat, even though they fit within 4MB of ROM (with built-in applications that had formally shipped separately on two 800KB applications floppies) and - horrors! - took almost 3 seconds from power-on to get to the GUI, even on faster 33MHz ARM3s.

As far as I'm concerned, computing has gone backwards since those days: Even embedded systems take ages to boot, but I can pull out my prized A5000 Alpha as a genuine museum piece, and astound people with the boot times on that beast. If you want to try RISC OS out, buy yourself a Titanium ATX board and put yourself together a RISC box - you'll be blown away.

ARM has been fit for the desktop for some time, now - several decades, in fact. It's more than ready - all it needs are competent developers with a focus on what's important. Apple giving Intel the heave-ho is a great move.

For the curious:
https://en.wikipedia.org/wiki/Acorn_Archimedes

In reply to by GeezerGeek