Apple plans to ditch Intel chips: report

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Apple plans to ditch Intel chips: report

Intel's stock price was hit this week following a report that Apple is planning to ditch its processors for Mac computers as early as 2020.

Citing sources, Bloomberg reported that Apple planned to start using its own chips for Macs as part of an initiative code-named Kalamata that aims to make all of Apple's devices, including iPhones and iPads, work more similarly. The project is in its early stages.

Intel declined to comment on the Bloomberg report.

Apple accounts for roughly 5 percent of Intel's annual revenue, according to a Bloomberg analysis. Apple started using Intel x86 processors for Mac computers in 2006 as a part of a move away from IBM-built PowerPC processors.

Subsequently, Intel lost its chance to become the chip supplier for Apple's iPhone, iPad and other non-Mac devices, leading the company to miss out on a major revenue-generating opportunity.

Intel has been transitioning itself from a PC-centric business to a data-centric one, where high-growth markets like the internet of things, data centre and cloud have become a major focus.

Apple's move could also help the company mitigate the impact of the Meltdown and Spectre vulnerabilities that were uncovered in Intel chips at the beginning of this year.

This article originally appeared at crn.com

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