Apple Will Start Making Its Own Chips

by 6 months ago

Unsplash/Kari Shea


 

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Apple is getting ready to part ways with long time chip-maker and partner in crime, Intel. It’s expected that Apple will announce at its WWDC 2020, which starts on June 22nd, that it’s cutting ties with Intel as it begins to produce its own processors.

Diversifying

Keep in mind, Apple already makes its own chips, not unlike a fancy burger joint, built on an architecture called ARM, which it uses in iPhones and iPads. Now, Macs could be joining the party.

The key difference between ARM and standard processors is that they can carry cellular connectivity without draining battery like current laptop chips do. That means your next Mac could be able to connect from anywhere that you can get a cell connection.

Apple waits for no one 

What’s more, Apple wouldn’t need to wait on Intel to finish making new chips before it releases new products. Apple does work with Qualcomm to create the modems that connect its phones and iPads to wifi, but if they can just figure that out, all they have to do is build a fleet of shipping companies and vertical integration will be achieved.

Apple has an uphill battle ahead of it though. Just because you throw an ARM-based chip into a MacBook, doesn’t mean anyone wants it. Samsung, Qualcomm, and Microsoft have all tried to sell them, and fans were not impressed. But, hey, it can’t be any worse than the butterfly keyboard debacle.

The bottom line…

On the news, Intel shares fell 1.5%, while Apple saw growth of 3% on the day, to an all-time high. Apple wasn’t alone, however, so maybe it was (read: it definitely was) more than just a new chip source that sent stocks rising.

Facebook, Microsoft, and Amazon also hit all-time highs, showing that the tech industry has some real faith in that V-shaped recovery we’ve been talking so much about. Alphabet also rose, but they didn’t hit an all-time high. Sucks to suck.

Water Cooler Talking Point(s)

💧”The entire point of my laptop not being able to get cell service is that I can keep people from reaching me on it if I don’t have wifi.” (AJ, The Water Coolest HQ)

 

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The Water Coolest is a daily business newsletter consisting of business news, financial advice, and unfiltered commentary. Delivered fresh in your inbox every morning so you're ready to snap necks and cash checks. Written by Tyler Morrin, AJ Glagolev, Nick Ellis, and Ian Barto.

TAGSApplebusiness WWDCiPhoneMacstocksTech