Apple plans to ditch Intel, make own chips

Apple plans to ditch Intel, make own chips

Apple plans to ditch Intel, make own chips

The plan, as outlined by Bloomberg, which cited people familiar with the matter, will mean that from 2020, Apple Mac should ship with Apple processors.

Digitimes reported Tuesday that Apple is now working with Taiwan Semiconductor Manufacturing Company (TSMC) to produce micro LED panels for two new devices.

Apple is set to power its Mac computers with in-house processors. The company will also be able to produce new systems without having to depend on when Intel would be able to put new chips into production. Given Apple's increasing capabilities in processor manufacturing, and a push to make communication between different product families faster and more seamless, the decision to gradually phase out Intel hardware might make a lot of sense to the Cupertino, California-based firm. Intel chips remain some of the only major processor components designed by others inside Apple's product portfolio. The chip also boasts built-in neural engines to make Face ID work as well as Apple's own-design Secure Enclave technology. Apple Inc. disclosed in a document filed with the US Securities and Exchange Commission (SEC) that Senior Vice President Riccio Daniel J. has sold 15,641 shares of Apple Inc.

Apple's Mac computers accounted for less than 6% of Intel's expected $65bn (£45bn) sales revenue this year, which is around $4bn (£2.8bn).

This move will also make Apple's devices, such as iPhone, Macs, iPads work more seamlessly together. At present, Apple provides roughly 5 percent of Intel's annual revenue and Intel stock has already dropped following the news. The only current Apple devices with screens larger than MacBooks are iMac desktops. 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.

In 2005, Apple announced a move to Intel chips in its Macs, an initiative that put former Intel Chief Executive Officer Paul Ottelini on stage with Apple co-founder Steve Jobs.

Morgan Stanley's top-rated analyst Joseph Moore said he doesn't see Intel's roughly 4 percent exposure to Apple's Mac devices being fully at risk in an "investable time frame", reported Reuters.

Apple past year sold 19 million Mac computers, accounting for about 7% of the overall PC market, Pitzer said.

Does the idea of a custom Mac chip excite you? The main goal of this initiative is to line up all of Apple's devices including the Mac, iPhones, and iPads.

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