For quite some time now, the news about Apple (AAPL) cutting its dependence on Intel (INTC) has been doing rounds. And it seems like the decade-long partnership is on the verge of being broken up as Apple plans to replace Intel processors in future Mac computers with its own chips from early 2020. According to reports from Bloomberg, Kalamata — the code for the process of replacing Intel process — is said to be in the early stages of development.
Over the recent times, the iPhone maker has been quite serious about its chip research and creation. Apple, in fact, made a huge progress after it came up with its own custom silicon for iOS devices. Not to forget the in-house A-series chips that beat down stiff competition from similar players like Qualcomm (QCOM), and Samsung in terms of performance.
Later this year, the tech giant is also set to add its own co-processing chips to its MacBook laptops and Mac desktops. All these initiatives by Apple — to switch to custom chips– clearly hint towards a future where Apple would completely distance itself from Intel. Apart from Intel, its peers Nvidia (NVDA) and Qualcomm also face the threat from the driverless carmakers’ recent decision to stop their automated vehicle tests.
With certain new initiatives rolled out last year, Apple shows that it is not only interested in producing chips for its future models of iPhone and iPad but also in developing its own CPU for laptops, modems, and touchscreen processing systems. In fact, reports suggest that this move is an integral part of Apple’s strategy to make iPhones, iPads as well as Macs function better.
Apart from the performance factor, Apple is considering this change in order to offer long-lasting battery life and a wireless network that operates faster. More importantly, by having its own in-house chips the company can have a better control over its so-called hardware roadmap and can also quickly unveil new features to its products.
This move by Apple makes sense, especially after the Silicon Valley chipmaker came out with an announcement on security issues that raised several concerns. Early this year, Intel stated that most of its processors- in computers and smartphones- carried a feature that made it more vulnerable to a security attack.
However, ending ties with Apple would be a major blow to Intel, which received about 5% of annual revenues from Apple. Intel, that was instrumental in helping Apple revive Mac success, traded in red yesterday after this news. However, Intel traded towards the north in today’s morning session as this news was offset by the fact that it has got other strong customers including Dell, Lenovo, and HP.