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Apple (AAPL) could be preparing to stop using Intel’s (INTC) chips in its Mac computers in as little as two years. The iPhone maker is reportedly working on a multi-step plan to work toward making all of its devices work together more seamlessly.
Apple initiative code-named Kalamata
Citing sources familiar with Apple’s plans, Bloomberg reports that Apple’s plan to integrate its products is code-named Kalamata, and it’s still in the early stages. If the company really does follow through with it, Intel would sustain a major blow. The chip maker is credited with helping make Mac computers successful again, and about 5% of its revenue every year comes from the iPhone maker, according to Bloomberg. Intel stock plunged by about 9% for it largest intraday decline in years as a result of the news.
The media outlet’s sources said the transition from Intel processors to Apple chips is slated to start as soon as 2020, but the company is reportedly planning to make software changes before then. The shift is expected to bring a closer integration between iOS and macOS, and the tech giant has already been bringing features across the two operating system gradually in recent years.
The company is also reportedly working a new software platform currently referred to internally as Marzipan, the news outlet added. The new platform could be released at some point this year, and it would enable iPad and iPhone apps to be run on Mac computers.
Here’s what Apple gains by ditching Intel
Dumping Intel would also be a major change for Apple itself, as the chip maker’s processors are one of the few main parts that are still designed by companies other than Apple. The company already uses its own chips in the iPhone, iPad, Apple TV, and Apple Watch. The company designs its chips based on ARM’s chip architecture.
Switching its Mac computers to its own chips would also give the company more flexibility in terms of release timelines for new Macs. The iPhone maker would also be able to speed up the rate at which it can expand new features across its product line, further differentiating them from products made by competitors. The company would also be able to integrate its software with its hardware more closely, which Bloomberg suggests could enable it to improve the battery life in its Macs in a fashion similar to what it did with the iPad.
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