Apple plants to suspend the usage of Intel's processors
Apple Inc. seeks independence from Intel. According to Bloomberg News, by 2020, Apple plans to replace processors developed by Intel Corp. with its own processors. The switch is supposed to be held in phases, starting with laptops such as the 12-inch MacBook.
The transition from Intel to Apple chips is represented in a project dubbed as Kalamata. Although it's still in the early development stages, the company is creating a strategic plan to unify all Apple's devices (Macs, iPhones, iPads, iPods, etc.) by adapting processors designed by Apple and based on technology from Arm Holdings Plc to all devices.
Experts agree that such a move would set Apple free to release new models and devices based on its timeline without Intel's plans into consideration. There are rumors that some of the scheduled Intel's chips came out of schedule, which is why Apple was forced to delay the release of its new products.
The move would knock Intel down
Intel has been partners with Apple since 2006. Microsoft Windows experienced the shock when Intel agreed upon supplying Apple Mac devices with Intel-based chips.
Intel participated in the speedy growth and coming success of Apple Mac and influenced it's current position significantly, though not financially. It has been estimated that Intel receives approximately 5 percent of its annual revenue annually.
However, what Intel fears that Apple's decision to switch away from Intel would start a new trend of significant customers to start developing their own components, including but not limited to processors.
For the last couple of months, a significant drop of Intel's shares has dropped (more than from 6.4 to 9.2). If Apple would approve the switch from Intel's processors, then the decline is expected to continue.
Apple hasn't yet approved the rumors about divorce with Intel
In fact, Apple is already creating its own chips for iPhone and iPad based on the ARM. Nevertheless, as pointed out by Shannon Cross, an analyst at Cross Research:
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.
Nevertheless, Apple did not approve the project and plans to stop partnership with Intel, or at least not yet. All company's spokesperson said was:
We don’t comment on speculation about our customers.
Intel's CFO Stacy Smith in an interview with Business Insider did not expatiate on the subject either. However, he did not admit to the rumors about Intel's stagnation and failure to redesign CPU for the last three years. He said:
Our leadership over the rest of the industry is extending. We're not delayed relative to the industry. We're actually ahead of the industry.
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