Skip to main content

Apple Is Said Close to Switching From Intel Chips to Its Own

Apple this month may unveil a plan to start using its own chips in Mac computers instead of Intel's chips, a report say.
  • Author:
  • Publish date:

Apple  (AAPL) - Get Apple Inc. Report is reportedly close to announcing that it will start using its own main processors for Mac computers instead of Intel’s  (INTC) - Get Intel Corporation Report chips, a report says.

Such a move has been talked about for at least two years, Bloomberg reported.

The announcement could come as soon as the week of June 22 at the Cupertino, Calif., consumer electronics titan’s annual developer conference, knowledgeable sources told Bloomberg. 

That would offer an adjustment period for outside developers before new Macs are built in 2021.

In the 36-year history of the Mac, Apple-designed processors haven’t been used before. Apple has been using Intel since 2006, Bloomberg reports..

TheStreet Recommends

Apple’s PC market share totals about 10% of the market, so the move shouldn’t devastate Intel, unless it spurs other PC makers to abandon Intel, too, Bloomberg notes.

The technology used in Apple-designed iPhone and iPad chips won’t change with the new processors, Bloomberg reports. And future Macs will still run the macOS operating system rather than the iOS software used on Apple’s mobile devices.

Apple shares recently traded little changed at $333.799. They have risen 15% over the past three months.

Morningstar analyst Abhinav Davuluri thinks the shares are overvalued given the obstacles Apple faces.

“We are maintaining our fair value estimate of $240 per share for narrow-moat Apple and we recommend prospective investors wait for a wider margin of safety given the tenuous state of the global economy,” he wrote in a commentary April 30.

Intel shares recently traded at $63.27, down 0.63%, and have climbed 14% over the past three months.