Apple will Use its Own Chips in Mac Computers by 2020

April 23, 2018
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article by Christina Williams author

By 2020, Apple plans on leaving its chip-making partnership with Intel and start making their own chips for its Mac computer line. Kalamata, the code name for the initiative, will help to make all Apple devices work together.

Reports suggest that the initiative is still undergoing development. If the tech giant decides to move forward with the initiative, it would affect their current chip maker, Intel, drastically.The company currently earns 5 percent of its income from Apple. However, the move would be great for Apple because it would allow the tech giant the ability to create better models on its own time.

“We think that Apple is looking at ways to further integrate their hardware and software platforms, and they’ve clearly made some moves in this space, trying to integrate iOS and macOS,” said Cross Research analyst Shannon Cross. “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.”

The change would also separate Apple from other PC makers, like Dell, HP, and Lenovo, that rely on Intel to make chips. Even though Apple does not plan to create its own chips until 2020, the company is have been integrating their own user-facing features for years. A new software platform, titled Marzipan, is scheduled for release this year. The software will enable consumers to use iPhone and iPad apps on their Mac computers.

Apple’s initiative signals a potential trend of PC makers designing their own parts. This could be problematic for Intel in the long run. This is not the first time that the company has shaken up the industry. In 2005, the tech company announced a partnership that ended the company’s chip-making partnership with IBM and Motorola. Since Apple is known for their high-speed light devices, they are working to ensure that they are able to do this without Intel chips. It is very likely that Apple will begin their transition with laptops before moving onto desktop devices and iPhones.

The biggest mobile phone chip provider, Qualcomm, is partnering with PC makers to introduce light laptops with the help of its ARM chips. The chip provider hopes to gain an edge over Intel. Microsoft is supporting Qualcomm’s effort by creating a Windows operating system that runs on Qualcomm ARM-based chips.

Despite the efforts of several others, Intel’s dominance in the chip-making market cannot be denied. The company is known for its ability to create technology that outdoes all of its competition.

Intel refused to comment on Apple’s latest initiative.

 

Source: Bloomberg