Apple plans to cut its ties with Intel

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apple cut ties with intel

According to a report from Bloomberg, Apple plans to cut its ties with Intel Corporation. In 2005 Apple announced it would start using Intel processors in Macs and replaced then existing chips from IBM. It was heavily rumored recently that Apple’s relation with Intel Corp. will come to a halt. A recent report from Bloomberg Businessweek’s Mark Gurman, hints that their breakup is inevitable.

Apple’s initiation, code-named Kalamata, is a part of its large-scale strategy to make all of Apple devices including iPads, iPhone and now Macs run seamlessly together. This project is approved and more likely will be initiated in a multi-step transition.

Quitting Intel would come with a host of complications for both Apple and Intel. It would be a heavy blow for Intel as Apple provided Intel with annual 5% of revenue. Intel would also lose connection with one of the leading brands in electronics. On the other hand, for Apple, partnering with Intel Corporation helped revived success with Macs.

The two California based companies have long enjoyed fruitful partnership ever since Apple made the switch to Intel CPUs with the 2006 MacBook Pro and iMac

Following recent reports from Bloomberg’s Ian King and Mark Gurman, Intel shares dropped 9.2 percent on Monday. Apple is battling with Intel on its own. Apple was involved in creating A-series processors that can do the same work Intel did to stay within Apple Apple’s ecosystem.

Apple’s reason to go alone and forsake its mutually profitable relation with Intel may come as surprise. But for a company like Apple Inc., it seems reasonable and obvious.

APPLE’S AMBITION

This Shift form Apple allows it to stand out in the competition.Apple plans to bring features to all of the Apple products more quickly. Apple would become the only major PC maker to use it’s own custom chips.Other big competitors like Dell Technologies Inc, Lenovo Group Inc., HP Inc., and Asustek Computer Inc. use Intel chips.

By applying its own chips, Apple would be able to tightly integrate its new custom hardware and software. This integration will potentially result in systems with better battery life. Similar to iPads, which use Apple chips.

The transition to Apple chips in hardware will begin as early as 2020. The software part, on the other hand, will begin even before that.

Currently, Apple’s iPhones and iPads use custom Apple chip and run iOS operating system while Mac computers run macOS with Intel chip.

 

 

 

Credits: Bloomberg, TheVerge

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