Rumor has Apple using custom Mac chips in by 2020

Rumor has Apple using custom Mac chips in by 2020

Rumor has Apple using custom Mac chips in by 2020

A new report from Bloomberg claims that Apple is planning on ditching Intel to work on its own custom made Mac chips as early as 2020.

People familiar with the plans told Bloomberg that the "Kalamata" initiative is in the early developmental stages, but Intel stock prices closed 6pc down and dropped as much as 9pc when the news was first reported. These products use Apple chips which are largely based on technology from ARM and produced by Taiwan Semiconductor Manufacturing.

Apple, which has used Intel chips in its computers since 2005, and the computer chipmaker both declined to comment. There's also a rumor that Apple is pursuing the development of its own modem chips to reduce reliance on Intel and Qualcomm. The use of the fixed chips would make Apple the only major computer manufacturer that uses their own processors.

Apple has a reputation for tightly controlling all aspects of its line-up, from hardware to software, and making its own chips fits into that strategy.

Apple is also set to greatly benefit from this move as they no longer have to depend on Intel's processor roadmap.

A report this morning from Taiwanese supply chain publication DigiTimes suggests that Apple's plans for producing next-generation MicroLED screens could be more ambitious than originally expected.

According to the latest report via DigiTimes, the high-end Apple Watch wearables are going to feature microLED technology, and in the future, we might actually be graced with an augmented reality wearable device, measuring around 1.4 and 0.8 inches respectively.

This move will also make Apple's devices, such as iPhone, Macs, iPads work more seamlessly together. Following the news, Intel shares dropped by 9.2 percent, which has been the biggest intraday drop in the past two years. A Bloomberg supply chain survey reveals that Apple accounts for nearly 5 percent of Intel's entire revenue. The only current Apple devices with screens larger than MacBooks are iMac desktops. The Apple Watch has its own Apple-developed chips too, as does its Bluetooth headphones. The company now makes the A-Series chips found in iPads and iPhones.

Morgan Stanley's top-rated analyst Joseph Moore said he doesn't see Intel's roughly 4 percent exposure to Apple's Mac devices being fully at risk in an "investable time frame", reported Reuters. It was a partnership that shook up the PC industry and saw Apple shift away from chips co-developed by IBM and Motorola.

Latest News