The multinational tech giant Apple Inc. will reportedly manufacture its own chips and use the same in its Mac processors by 2020. As Apple would replace Intel processors with its own chips, it is likely that the business relationship between the two firms might end, claim sources. Incidentally, Apple has been installing Intel chips in its computers since the year 2005. It is being speculated that the company’s decision to produce and deploy its own chips might impact Intel’s overall remuneration.
Dubbed as Kalamata, this initiative will help in creating a new chip processor design & fabrication in its initial phase of development. It is seemingly a part of Apple’s wider business strategy to make all its devices such as iPads, Macs, and iPhones operate consistently. Currently, various products of Apple including iPhones, Apple TVs, iPads, and Apple Watches are installed with the parent company’s core processors.
Intel chips are the key processor components used by only some of Apple’s products such as the Mac processors. Hereon though, Apple’s self-started chip production will help the company introduce new models as per the future requirements, thereby reducing its dependence on Intel’s processor roadmap.
Experts put forth their views regarding the tech giant’s decision stating that it would help Apple to introduce and embed new features in its products more rapidly. The decision will also assist the firm in becoming a key computer manufacturer using its own processors and setting it apart from its business rivals such as Dell, ASUS, and HP, they further claim.
According to Bloomberg, the initiative will help Apple save a substantial amount of remuneration – the company provides Intel with 5% of its yearly revenue. With Apple’s declaration of its chip manufacturing plans, a dip of nearly 9.2% was observed in Intel’s share price, the biggest drop since the last two years.