The chips are down: Apple may snub Intel


Bloomberg noted the project will likely involve stages of transition to the new chips. Keep in mind that the Apple Watch dropping in 2018 will have thinner bezels and a slightly bigger display but it does not mean that it will take advantage of microLED technology.

The move by Apple saw Intel's stock suffering a setback, as it had dropped by six percent by Monday evening. Intel chips will nearly certainly remain in Apple's top-end machines like the iMac Pro and forthcoming Mac Pro revision until the company can produce in-house chips that are capable of meeting the demands of professional Mac users. The cost is initially expected to be 4 to 6 times that of the OLED panels used in current Watches, so the screen might only be used in Apple's "top-of-the-line" models. The Cupertino giant already designs its own ARM-based chips that it uses in iPhones, iPads, Watches and Apple TV devices. Apple has been making its own chips for a while now and could completely replace Intel-made chips within two years. "It makes sense that they're going in this direction. If you look at incremental R&D spend, it's gone into ways to try to vertically integrate their components so they can add more functionality for competitive differentiation", Cross added. An Apple with the capability to manufacturer processing chips for its own products can also start providing them to other companies.

Companies like Dell, HP, Lenovo and Asus all use Intel chips in their laptops and desktops. Apple has slowly been integrating user-facing features over the past several years, and more recently starting sharing lower-level features like a new file management system.

MicroLED has become a hot new buzz world in the Apple rumor circuit, with reports claiming that the company has a secret factory in California where it's developing the next-gen screen. 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.

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Intel shares were up a fraction, near 49, in morning trading on the stock market today.

Apple a year ago sold 19 million Mac computers, accounting for about 7% of the overall PC market, Pitzer said. On that note, the arrangement only constitutes five percent of Intel's annual revenue, so the loss won't really be that significant, all things considered.

It appears Apple might finally be getting ready to produce Mac processors in-house instead of relying on Intel or AMD to power its computers. Also, Intel's business has been shifting more to chips for data centers and away from PCs, Muse noted.