Apple Announces Big News At WWDC
Apple Announces Its Break Up With Intel: Apple is making some very bold and eye-grabbing decisions at Apple WWDC 2020. The WWDC 2020 is the biggest WWDC ever. This is because the event is a virtual one with audiences tuning in from their houses. This decision was taken by Apple in the light of the coronavirus pandemic prevailing across the globe. The decisions, products, and software announced in the event have made it a grander affair. The biggest news was about the beta version release of iOS 14. However, it was not as shocking when Apple announced that it has decided to end its business relations with chip producing company Intel.
Apple-Intel Break Up
Apple has been trying hard to optimize the production of its products by reducing their dependency on other firms. Apple started outsourcing the production of microprocessors 15 years ago when Steve Jobs decided to join hands with Intel. It was one of the biggest partnerships. The deal was a major win for Intel as it was starting to become a monopoly in its industry. However, Apple has decided to not use these chips in Apple Mac. They will instead use self-made chips to focus on independent production.
What The Apple-Intel Break Up Means For Intel?
The break from Apple could be a major blow for Intel. According to Portland investment analyst Weston Twigg, Intel generally earns a revenue of $2.5 billion to $3.5 billion a year and this break up would cost them somewhere around the middle of these two figures. This is a very small percentage of the total revenue of Intel. Moreover, the shares of Intel rose in the stock market even after this news. The only blow for Intel is a psychological one as the self-made chips from Apple are based on the design of its rival ARM Holdings.
How Apple Plans To Break Up With Intel?
Apple is not planning to immediately terminate the partnership. They have a roadmap to gradually walk out of it in the next two years. Till then, they will test their Mac with their own chip while simultaneously producing the Mac with an Intel processor for its users. The dependence of firms on Intel processors has decreased considerably with time.