Both Apple and Intel declined to comment on the report. If true, it looks like the Cupertino company is toying with the idea of custom Mac chips.
Transitioning to proprietary chips would free Apple from the constraints of Intel's production roadmap and allow it to be more flexible with time frames. Additionally, using its own modem chips would make it the only major PC developer to utilize its own processors. Dell Technologies Inc., HP Inc., Lenovo Group Ltd., and Asustek Computer Inc. use Intel chips.
Apple has a reputation for tightly controlling all aspects of its line-up, from hardware to software, and making its own chips fits into that strategy. Part of it may depend on what can be expected from the Apple-designed processors, as Intel CPUs still provide greater performance than ARM-based processors, but if the company feels its products will not lose capabilities, then perhaps we will see this happen.
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.
It's even mentioned that it will not stop with just processors as Apple wants to tie everything together, a larger project with code name Kalamata learns that Apple wants all its devices to work seamlessly together, so besides Macs also the iPhones and iPads.
As you can probably imagine, Intel's shares took a hit after this report surfaced, declining as much as 9.2 percent.
Intel reportedly receives around five per cent of its annual revenue from Apple. The only current Apple devices with screens larger than MacBooks are iMac desktops.
Intel has dominated computing processors for more than a decade, taking market share from Advanced Micro Devices Inc., its only rival in the market. This inadvertently means that Apple will stop sourcing the chipsets from Intel. Also, Intel's business has been shifting more to chips for data centers and away from PCs, Muse noted.
Over at Bloomberg word got out that Apple will be fabbing a self-developed CPU for their Mac computers. "We have better control over timing, over cost and over quality", Chief Financial Officer Luca Maestri said of Apple's chip efforts a year ago. The main objective of this initiative is to line up all of Apple's devices including the Mac, iPhones, and iPads.