Apple Might Replace Intel Chips by 2020


Other Mac laptops will receive Apple-developed chips this year, the report claims.

Semiconductor shares in the S&P 500 Index fell 4.4 per cent at the close of trading, their worst performance since February 8, after a report that Apple plans to start using its chips as soon as 2020 rather than processors made by from Intel.

Meanwhile, Apple is also making efforts to ensure Macs work more like iPhones.

Insiders at the company told Bloomberg the strategy, codenamed Kalamata, will help all of Apple's devices, including iPhones and Mac computers, "work more similarly and seamlessly together". Worse for the chipmaker, the move could spur other PC vendors to control their own processor fabrication by moving it in-house.

The Mac chips are reported to be in the early stages of development and the transition from Intel chips to Apple's own is likely to involve several steps.

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Park National Corp OH reduced its stake in Apple (NASDAQ:AAPL) by 0.4% in the fourth quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The only current Apple devices with screens larger than MacBooks are iMac desktops. The report does caution that Apple could theoretically abandon or delay the shift from Intel. It won't have to pay Intel for the chips as well which is certainly going to be an added benefit. If true, it looks like the Cupertino company is toying with the idea of custom Mac chips.

Apple attacks the smartphone and smartwatch market with brand new displays they are developing in partnership with TSMC as we speak. As mobile devices become more and more powerful, Intel is seeing new challengers in its space, and Apple is unlikely to be the last. Starting April 1, Apple began requiring developers to build native Apple Watch apps for the wearable platform in any future updates, and some are just ditching full Watch support altogether. Major computer manufacturers today like HP, Lenovo, and Asus all rely on Intel processors. It more than tripled in 2016 and doubled again past year.

Apple sold over 19m Macs last year, with the top-of-the-line computers accounting for 11pc of the company's $229.2bn revenue last year.

Do you believe that Apple would push through with its plan to create its own Mac chips? Apple wants to produce screens that will make their products different on the market.