This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Apple Confirms Move to Intel

Updated from 2:39 p.m. EDT

SAN FRANCISCO -- Apple's (AAPL - Get Report) Macintosh computers will have Intel (INTC - Get Report) inside beginning next year, CEO Steve Jobs said Monday.

Apple will introduce its first Macs using Intel Pentium processors by next June, Jobs told developers here. The company plans to complete its move from its current PowerPC-based computers to Intel-based ones by the end of 2007.

The move largely has to do with performance and power-consumption issues, Jobs said, noting that the company has been unable to deliver a notebook computer running the top-of-the-line PowerPC G5 chip to date.

"We want to be making the best computers for our customers going forward," Jobs said. "As we look ahead and envision the array of products we want to build, we don't know how we're going to build them" with PowerPC architecture.

Although reports had surfaced in recent weeks that Apple was considering the change, many in the Mac developer community seemed stunned by the move. Jobs' announcement was greeted initially with silence from the crowd here.

Intel is the dominant chipmaker for PCs, but none of the computers that Apple has made to date have run on Intel's processors. The original Macintosh and Apple II computers ran on chips from Motorola (MOT). About 10 years ago, Apple moved to the PowerPC chip designed by Motorola and IBM (IBM - Get Report).

Apple has apparently been considering the move to Intel for some time. Apple has quietly designed every version of its OS X operating system to run on Intel chips since the first iteration of OS X five years ago.

The move to Intel chips could allow Apple to cut prices on its computers. Intel typically helps subsidize its hardware partners' marketing expenses. One of the problems Apple has faced in gaining new customers is that its machines are typically priced above comparable ones from competitors.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,191.37 -195.84 -1.13%
S&P 500 2,002.16 -27.39 -1.35%
NASDAQ 4,637.9940 -43.5030 -0.93%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs