Apple is ditching Intel processors for a new lineup of Mac computers coming in 2021, according to analyst Ming-Chi Kuo of TF Securities.
The often-accurate analyst wrote on Monday that Apple is investing in its own line of 5 nanometer (nm) chips, a smaller and more dense chip format. Apple shares fell 3.27% on Monday to $302.82 amid a broader selloff tied to coronavirus fears.
The Apple-designed chips will be used in a new Mac coming in the first half of 2021, according to Kuo. Apple computers use Intel (INTC) - Get Report processors currently, whereas Apple iPhones and iPads use custom chips made with ARM technology. Intel shares fell 4.01% to $61.76 on Monday.
Kuo wrote that over the next 12 to 18 months, Apple's new products will adopt the Apple-designed 5nm processors, including a new 5G iPhone, a new iPad and the new Mac arriving in the first half of 2021.
He added that production of the 5nm chips won't be affected by the ongoing coronavirus outbreak, partly because Apple will be using more components from companies such as chip foundries, which tend to be more insulated from disruption due to high levels of automation.