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Apple moves to use its own chips for the Mac

Apple laptops inside the company's Fifth Avenue store in New York. The company moving to use its own chips in Macs ends a nearly 15-year reliance on Intel Corp to supply processors for its flagship laptops and desktop.
Apple laptops inside the company's Fifth Avenue store in New York. The company moving to use its own chips in Macs ends a nearly 15-year reliance on Intel Corp to supply processors for its flagship laptops and desktop.PHOTO: THE NEW YORK TIMES

This will give app developers access to Apple's laptops and desktop for the first time

SAN FRANCISCO • Apple Inc yesterday said it will switch to its own chips for its Mac computers, saying the first machines will ship this year.

This ends a nearly 15-year reliance on Intel Corp to supply processors for its flagship laptops and desktop.

Apple chief executive Tim Cook said it marked the beginning of a major new era for a product line that powered the company's rise in the 1980s and its resurgence in the late 1990s.

"Silicon is at the heart of our hardware," Cook said during a virtual keynote address recorded at the company's Cupertino, California, headquarters for its annual developer conference.

"Having a world class silicon design team is a game changer."

The silicon switch brings the Mac in line with the company's iPhones and iPads, which already use Apple-designed chips.

Cook said that Apple expects the Mac transition to take about two years and that Apple still has some Intel-based computers in its pipeline that it will support for "many years".

But the move will give software developers for Apple's largest pool of third-party apps - those built for iPhones and iPads - new access to its laptops and desktop for the first time.

Apple software chief Craig Federighi said that for those offerings, "most apps will just work, with no changes from the developer" on the new Macs.

He also said the "vast majority" of existing apps for Intel-based machines can be modified to work in "just a few days".

But analysts said Intel would likely continue to supply Apple with data centre chips that power services such as iCloud.

In a statement, Intel said Apple remained a customer "across several areas of business" and that it was still focused on the PC market.

"We believe Intel-powered PCs - like those based on our forthcoming Tiger Lake mobile platform - provide global customers the best experience in the areas they value most, as well as the most open platform for developers, both today and into the future."

Mr Ben Bajarin, an analyst with Creative Strategies, said Apple's two-year window at moving to its own chips was likely aimed at holding on to Mac sales to corporations, where Apple has double-digit market share.

"There are just standards there (in corporate software) that run on x86" chips from Intel, he said.

Apple "cannot abandon that as quickly as they want if they want to maintain the enterprise and commercial share for Mac, which is one of their major segments", he said.

As with previous Macs, the new Apple-chipped machines will remain able to download software from outside Apple's official app stores, in contrast to iPhones and iPads, which for the most part can only run software from Apple's stores.

Apple shares gained 2.7 per cent to a record high, helping the Nasdaq Composite to a record close of its own.

REUTERS

A version of this article appeared in the print edition of The Straits Times on June 24, 2020, with the headline 'Apple moves to use its own chips for the Mac '. Print Edition | Subscribe