Apple to Replace Intel with Custom Mac Chips by 2020

The transition from Intel chips to Apple chips is likely to result in a multi-step transition.

The decision would be a major blow to Intel, Apple’s Mac chip supplier.

Apple’s newest SoC is the A11 Bionic, now only used in the iPhone 8, 8 Plus and X. Back in September previous year PCPer did some interesting benchmarks and tests on the A11 comparing it with various Qualcomm, Huawei and Intel SOCs. They were down 6.4 percent at $48.75 at 3:30 p.m.in NY.

Stifel analyst Kevin Cassidy said in a note he believed the market was “over reacting” to the report on Apple’s plans and that Intel’s prospects remained good. Both the companies have declined to comment.

People familiar with the plans told Bloomberg that the “Kalamata” initiative is in the early developmental stages, but Intel stock prices closed 6pc down and dropped as much as 9pc when the news was first reported. “It makes sense to assume that they will go further in this direction”, said Shannon Cross, analyst at Cross Research. Companies such as Dell, HP, Lenovo, and a handful of others rely on Intel for their computers’ chips.

With device-to-device processor integration added on top of cost-savings, Apple would have extra flexibility in launching new products, and having control over its hardware should strengthen the security level of its products.

For Apple it would mean a very life changing moment and what should exactly be inside Apple’s portfolio. Park National Corp OH’s holdings in Apple were worth $42,255,000 at the end of the most recent reporting period. According to the report, Apple is already working with Taiwan Semiconductor Manufacturing Company (TSMC) on small and large screens for three separate devices, with production timelines as soon as the second half of this year. 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.

Apple is in the process of developing latest-generation displays for new, completely unexpected products.

Transitioning to proprietary chips would free Apple from the constraints of Intel’s production roadmap and allow it to be more flexible with time frames.

Intel has dominated computing processors for more than a decade, taking market share from Advanced Micro Devices Inc., its only rival in the market.

Intel probably will generate about $2.7 billion from Mac chip sales in 2019, or about 4% of its revenue. The business’s revenue for the quarter was up 12.7% compared to the same quarter last year. analysts forecast that Apple will post 11.37 EPS for the current fiscal year.