stock was already having a bad day, down over 5%, when it suddenly
tumbled even lower, plunging as much as 8.8%, its biggest slide in
over 2 years, following a Bloomberg report that Apple is planning
to use its own chips in Mac computers beginning as early as 2020,
and replacing processors from its existing partner, Intel.
to Bloomberg, the initiative, code named Kalamata, is still in the
early developmental stages, but comes as part of a larger strategy
to make all of Apple’s devices - including Macs, iPhones, and
iPads - work more similarly and seamlessly together, said the
people, who asked not to be identified discussing private
information. The project, which executives have approved, will
likely result in a multi-step transition.
shift would also allow Cupertino, California-based Apple to more
quickly bring new features to all of its products and
differentiate them from the competition. Using its own main
chips would make Apple the only major PC maker to use its own
processors. Dell Technologies Inc., HP Inc., Lenovo Group Ltd.,
and Asustek Computer Inc. use Intel chips.
using its own chips, Apple would be able to more tightly
integrate new hardware and software, potentially resulting in
systems with better battery life -- similar to iPads, which use
to say, the shift would be a crushing blow to Intel, "whose
partnership helped revive Apple’s Mac success and linked the
chipmaker to one of the leading brands in electronics." Apple
provides Intel with about 5 percent of its annual revenue,
according to Bloomberg supply chain analysis.
notes, it's not as though the loss of Apple can be made up
with growth from other Windows-based PCs which, as the Gartner
table below shows.
Bloomberg hedges that Apple could still theoretically abandon or
delay the switch, judging by the stock reaction that's not too