Over the next two years, Apple might enter the chip industry as a manufacturer of their own parts for Mac desktops and MacBook laptops, with mobile systems to follow. Image; Compfight

Apple has caused Intel’s stock to drop in the market after reportedly announcing that they will stop using Intel chips in Mac desktops and MacBook laptops. Shares dropped around 9.2 percent after the report made by Bloomberg was made public. It was also reported that Apple plans to develop their own CPU for their computer systems by 2020, the initiative’s code name is Kalamata.

Despite Mac products dropping Intel chips being the main focus points of news, it was also announced that iPhones and iPads will also stop using them, as part of Apple’s larger plan to develop their own chip systems, which is still in the earlier stages of development.

However, according to some Wall Street analysts, this could be a key moment to invest in Intel’s stock since apparently, the market is merely overreacting to this move.

Apple’s move is considered by many to be a heavy blow to Intel as the leading chipmaker brand, especially because Apple represents five percent of Intel’s annual revenue according to analysts. This is certain to bring a multi-step transition for Apple, and as expected by many a different display on software layout due to the major processor component that was Intel.

Apple comes out on top if they leave Intel

Due to the fact that most (and soon enough all) Apple products including Apple Watches and Apple TV sets have proprietary designs and processors, this would enable the company to design and release new models and updates as they please to fit their timetable. More importantly, this would allow Apple to not rely on other companies to develop new products.

Also, this step towards independence would male Apple the only major PC maker to use its own processor, giving Macs a privileged spot in the world of laptops, standing out as other companies like Lenovo or Dell continue to use designed chips.

Apple changes before 2020

Some changes are stipulated to begin in 2020, but Apple decided to make a shift with their software. Apple announced that it has slowly been integrating different operative systems to iPhones and iPads in order to slowly separate the classical Intel processed hardware from the purely Apple designed one.

Shannon Cross, an analyst at Cross Research said about the move “We think that Apple is looking at ways to further integrate their hardware and software platforms, and they’ve clearly made some moves in this space, trying to integrate iOS and macOS”.

Source: Bloomberg