Apple is reportedly trying to ready its own computer chips by 2020, meaning it would no longer use processors from Intel.
Reports of the expected plan, believed to be called the Kalamata initiative, triggered a substantial decrease for Intel’s stock price.
As of late afternoon, early evening Monday, the U.S.-based tech company’s stock dropped roughly six percent. The same alleged news seemed to do very little to the fellow American tech corporation — Apple’s stock took a very minimal dip of less than one percent at the same, loose point of time. Bloomberg was the first to report on Apple’s intention to wean itself off Intel’s creations and said Intel shares dropped as much as 9.2 percent at one point — its steepest fall in the last two years.
Intel was for quite some time the largest chip maker in the world, until South Korea-based Samsung recently took over. If Apple can build its own processors in a way that is successfully able to be embedded and doesn’t compromise other aspects of their oft-sought after devices, it could reap the substantial benefits of becoming more self-sufficient. Intel would likely take an even bigger hit over the long-run, as Apple provides approximately five percent of its annual revenue, according to Bloomberg. (RELATED: Apple Audit Shows Rash Of Serious Violations For Suppliers)
Apple typically tries to rely on its own components and technology in general for its various products and services. Computer chips were often considered the one major area where this notion wasn’t true, so altering that would further its market independence — especially since other key players in the industry, like Dell and Lenovo, use Intel chips.
Send tips to [email protected].