Apple’s Bold Move: Swapping Intel for Its Own Chips by 2020
Apple’s newest tech secret, affectionately known as Kalamata, signals a big leap—perhaps the company’s biggest in decades. Starting as early as 2020, Macs might ditch the trusty Intel processors that powered them since 2005, and instead run on Apple‑designed silicon. A Bloomberg report spotted the rumblings of this shift, citing insiders eager to share what the future holds.
What’s the Game Plan?
Apple’s aim is a tighter, smoother ecosystem: think Macs, iPads, iPhones, and Apple Watches all humming in harmony. With custom chips, Apple could:
- Speed up performance and cut power consumption simultaneously.
- Gain full control over the design timeline, slicing development costs.
- Lock in quality standards across all devices.
- Unleash features that third‑party chips simply can’t support.
All of this has tech enthusiasts pausing their coffee and, you know, looking at Mac gadgets from a fresh angle.
Market Reactions: Intel’s Shares Dip
Intel felt the sting as its shares slid 6.1% at $48.92. Meanwhile, the Nasdaq’s tech‑heavy mix slid 2.7%. A quick chat with Stifel analyst Kevin Cassidy revealed a mixed sentiment. He shared two thoughts:
- He thinks the market is overreacting to Apple’s wheel‑drive plans.
- He’s still convinced Intel will thrive—no other major PC maker has reached its level of independence yet.
Summit Insights’ Take
Unlike the excited chatter, Summit Insights analyst Kinngai Chan urged caution.
“Apple might swap Intel in the low‑end lineup, but a full takeover by 2020—especially for higher‑end Macs—looks like a stretch,” Chan warned.
The Numbers: Mac’s Current Slice of Apple
Last year, Apple shipped 19.2 million Macs – just over 11% of its mean $229.2 billion revenue for FY2017. Mac sales have climbed 4% in 2017, even when the overall PC market took a slight dip to 259.5 million units, the smallest decline since 2011, according to IDC.
Apple’s Sunny Path: The Chip Journey
Apple has long been rolling up its sleeves to design semiconductor powerhouses. The switch started with the iPhone 4’s processor in 2010, and has since been a continuous climb.
Chief Financial Officer Luca Maestri summed it up in one sentence:
“We can push the envelope on innovation. We have better control over timing, over cost and over quality.”
So the next time you crank up your Mac – whether it keeps its Intel vining roots or leans into Apple’s custom silicon – you’ll be part of a narrative where tech giants play the grand game of do‑in‑your‑own‑way. It’s a bold flip that’s likely to have a lasting impact (and yes, a few chuckles as you realize every new Apple device is simultaneously a tech statement and a piece of fine, bespoke hardware.)
