Apple Inc. (NASDAQ:AAPL) Rumored To Be Replacing Intel Corporation (NASDAQ:INTC) With Its Own Chips

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A report by Bloomberg has indicated that Apple Inc. (NASDAQ:AAPL) has started replacing Intel Core processors in all Mac products with its own Arm-based processor. This is not the first time that this rumor has surfaced. It is however the first time that such rumor has attached a project name (Kalamata) as well as a timeline (2020) to the Arm processor by Apple plans for Macs.

Considering that Apple has already made a lot of progress with it’s “A series” of processors for iPad and iPhone, this is could be a well-thought plan. The question that many will ask is why Apple has decided to shift to its own processors and if the process will occur at once or in phase. Additionally, many will be waiting to see the impact of this move to Apple Mac users and if the rumors are just a negotiating tactic so as to get a better price from Intel.

Immediately after the rumors cropped up, many pundits turned blame on Intel for its failure to offer enough performance even in the successive generations of its Core processor. In particular, Intel has been blamed for its low-power Core M series, which has shown lackluster performance and is susceptible to thermal throttling which greatly reduces its frequency due to a lot of heat produced.   Additionally, the Core M series does not perform well with high workloads.

Although Apple may be very happy with Intel’s roadmap and its inability to timely offer 10 nm products, one reason must be its tendency to be in charge and control critical components.

By dismantling and building the entire system, including its own processor, software and hardware, Apple is becoming even more fully integrated than any other computer company in the industry. It is a good idea for the company that it doesn’t get into the business of chip fabrication as this is the case with many businesses as they compete for business.  The AMD Ryzen processors are the only alternative to the Intel Core processors for Apple if it wants to stay with the x86 instruction set.

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