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Published: Mon, April 09, 2018
Research | By Jennifer Evans

The chips are down: Apple may snub Intel

The chips are down: Apple may snub Intel

The project, codenamed Kalamata, remains in its early stages but comes as a piece of a larger parcel in which Apple aims to make Macs, iPads, and iPhones work more similarly and seamlessly together. As in that earlier example, Bloomberg notes this would require a "multi-step transition".

This decision also marks a significant blow to the partnership that Intel and Apple formed, which was instrumental in helping to revive the Mac brand. The company is said to rely on Apple for 5 percent of its annual revenue. The New York-based Epoch Inv Prns has invested 3.05% in Apple Inc.

Apple could still theoretically abandon or delay the switch. American Financial Network Advisory Services LLC's holdings in Apple were worth $4,139,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Today, Taiwan-based Digitimes Research reported that Apple is working with Taiwan Semiconductor Manufacturing Company to produce small microLED panels for use in the Apple Watch and other wearables. It would also allow Apple to release new products on a timeline it controls, instead of following the release of new Intel CPUs.

It's been long rumoured, but now it seems it really could happen: Apple really is planning to dump Intel in favour of its own processors for at least some Macs. Apple uses Intel chips in their computers since 2005.

KitGuru Says: Apple first began using OLED with the original Apple Watch, but it took several years for that technology to spread to the iPhone. Dell Technologies Inc., HP Inc., Lenovo Group Ltd. and Asustek Computer Inc. use Intel chips.

Apple declined to comment, Bloomberg reported. The company has had a virtual monopoly on the market for years, with the only serious competition coming from Advanced Micro Devices, better known as AMD.

Apple sold almost 20m Macs a year ago as the wide desktop market continued its downward turn. As mobile devices become more and more powerful, Intel is seeing new challengers in its space, and Apple is unlikely to be the last. A bigger concern would be if this represents part of a wider trend of big customers moving to designing their own components, he said. The Apple Watch has its own Apple-developed chips too, as does its Bluetooth headphones. Also, Intel's business has been shifting more to chips for data centers and away from PCs, Muse noted. The company now makes the A-Series chips found in iPads and iPhones.

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