During the recent WWDC 2020 online, Apple announced plans to ditch Intel processors and move to in-house chips for Mac computers. The first computers with Apple Silicon will be released at the end of this year, and the Cupertino-based company plans to completely switch to processors of its own design within two years.
In our new article, we look at the impact this event could have on the stocks of two IT giants.
Background
The relationship between Apple and Intel began in 2006 when the first decided to ditch the PowerPC processors. The transition was not smooth as Apple had to adapt its software for the x86 architecture.
In subsequent years, the situation improved, but as the journalists found out , Cupertino was unhappy with the quality of the chips since 2015 and the appearance of the Skylake line. Apple turned out to be the largest customer with the most architecture complaints. As a result, it was decided to create their own processors on the ARM architecture - rumors about the Mac ARM project had been circulating for quite some time.
What the gap means for Apple, developers and users
The company plans to make the transition as smooth and as painless as possible for both users and software developers for their products. Developers interviewed by Wired believe the transition will be "surprisingly smooth" as Apple began preparations for it long before it announced its break with Intel.
In particular, a few years ago the company stopped supporting 32-bit applications that are incompatible with the 64-bit ARM architecture. Last year's WWDC introduced Catalyst technology, which lets you modify iPad apps to run on macOS without having to rewrite them entirely. Also a few months ago, the Universal Purchase feature was launched, with which users can buy an application once and use it on iOS, iPad OS and macOS. That is, Cupertino has long been preparing for the fact that macOS and iOS will work on the same platform.
In addition, Apple plans to launch Rosetta 2, an emulator that will allow Intel software to run on MAC computers already running ARM. This will allow not to give up support for products of developers who will hesitate with the transition. Another interesting point is that applications for iPhone and iPad can be run natively on Mac.
Also for developers, Apple will release a special version of the Mac mini for creating applications on the Mac with its own chips.
This most smooth transition format does not promise significant shocks and changes for end users, so the market reacted calmly to the news of the break with Intel. Apple shares continue the upward trend of recent months and experts do not expect sharp movements:
What Apple's departure means for Intel
At first glance, the loud news may seem like a serious blow to Intel, but in practice, things will not be so bad for the company, experts say. Today Intel controls about 95% of the server processor market and over 80% of the PC chip market. And with all this, the development of processors is not the only source of income for the company - Intel also develops solutions for data centers, products in the field of artificial intelligence, 5G networks and the Internet of things.
Analysts estimate possible losses from Apple's departure at $ 2.5 - $ 3.5 billion in revenue per year and at least several hundred million in lost annual profits for Intel. The numbers seem big, but for 2020 Intel's revenue target is $ 73.5 billion - against this background, the loss of Apple does not seem to be such a significant problem.
This is confirmed by the reaction of the market: after Apple's announcement, Intel shares did not fall:
In Russia, shares of American companies, including Apple and Intel, can be bought on the St. Petersburg Stock Exchange - you do not need to open an account with a foreign broker, a Russian account will be enough. You can open it online .
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