Apple plans to replace Intel chips in Macs with its own

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Intel has long supplied the processors for Apple's Mac lineup but if a new report is to be believed, Apple could replace the company's chips for Mac devices with its own as early as 2020. With its own chips, Apple would have the freedom to release new product models without relying on Intel's processor roadmap.

Still, given that the project could be a multi-stage transition, Intel chips will probably stay in the tech firm's high-grade products, such as the iMac Pro and upcoming Mac Pro 2018 until the company can create in-house processors that can fulfill the demands of professional Mac users.

While Intel issued patches for most devices, security experts said the flaws were more hard to deal with because they involved hardware rather than software. The company now makes the A-Series chips found in iPads and iPhones.

On Monday, when Bloomberg reported Apple was mulling building its own processors for its Macs, Intel's stock fell 5% on the news.

Apple has been manufacturing ARM-based chips to use in its Macs for quite some time now, but these chips mostly back the main Intel CPU when laptops are in the "Power Nap" session.

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According to Stifel's Cassidy, who reiterated his $53 price target for Intel, Apple accounted for around 4% of Intel revenue in 2017 and for under 1% of its profits for the year.

Citing unnamed "people familiar with the situation", Bloomberg last month reported that Apple is producing a small number of microLED test screens at a secret factory near its headquarters in Cupertino, Calif.

A new report says that Apple may start using its own chips in Mac computers as early as 2020. While Apple's decision to go solo with its Mac hardware might not affect Intel's bottom line in a big way, it is likely to raise the possibility of other major firms deciding to build their own hardware capabilities. The company has had a virtual monopoly on the market for years, with the only serious competition coming from Advanced Micro Devices, better known as AMD.

While Apple is down the list of computer sellers by unit shipments, it's third when measured by revenue previous year, highlighting the premium status of its products. Though it could also just mean Apple is experimenting with different kinds of prototypes while it readies its new generation of computers. Also, Intel's business has been shifting more to chips for data centers and away from PCs, Muse noted.

Does the idea of a custom Mac chip excite you?

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