Apple to Replace Intel with Custom Mac Chips by 2020

Apple looking to make significant Siri improvements, hints hiring spree

Apple looking to make significant Siri improvements, hints hiring spree

Citing people familiar with the plans, Bloomberg reports that Apple is planning to use its own chips in Macs by 2020. The Kalamata initiative will allow Apple's design and engineering teams to have a much greater control over the power and features they wish to implement.

If that happens, the Mac computer line would have processors similar to the recent A11 bionic chip in the iPhone 8 and iPhone X. All iPhones, iPads, Apple Watches, and Apple TVs now have Apple-made chips based on technology from software designer Arm Holdings Plc. With its own chips, Apple would have the freedom to release new product models without relying on Intel's processor roadmap.

By 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 Apple chips. Intel chips will nearly certainly remain in Apple's top-end machines like the iMac Pro and forthcoming Mac Pro revision until the company can produce in-house chips that are capable of meeting the demands of professional Mac users.

That's not the case for the Apple Watch's MicroLED screen, since the report claims production will begin in the second half of 2018 or at some point in 2019.

Craiglist rival Backpage seized by feds for sex ads, money laundering
Meanwhile, people who said they had placed ads on Backpage complained that they were not issued refunds or notified of a shutdown. Authorities in California also added that 90 percent of the site's income was derived from so-called "adult ads".

Shares of Intel were down by 6 percent to $48.92, following the report, but added 0.1 percent to $48.97 in after-hours trading. Currently, sales to Apple make up around 5 percent of Intel's annual revenue. The company's A-series of processors, now capped by the A11 Bionic chips used in the iPhones 8, 8 Plus and X, are all designed by the company for specific purposes, and based on an architecture licensed from British firm ARM. Apple for example already uses its own chip (called the T1) in the Touch Bar equipped Macbook Pro that launched in October 2016.

Intel has dominated computing processors for more than a decade, taking market share from Advanced Micro Devices Inc., its only rival in the market.

Apple previous year sold 19 million Mac computers, accounting for about 7% of the overall PC market, Pitzer said. The Apple Watch has its own Apple-developed chips too, as does its Bluetooth headphones. Apple-made chips are also present in iPhones, iPads and Apple watches. The move, needless to say, should make Intel worry about its business, given that its partnership with Apple is a big reason why it's one of the leading brands when it comes to electronics.

Macs account for just a small proportion of Apple's overall product package.

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