Intel Corporation (NASDAQ:INTC) Hints Custom ARM Processors Would Feature In Low-end Mac Mini And MacBook In 2020 And Prepares For A Drop In Revenues
Intel Corporation (NASDAQ:INTC) traded at $52.49 when news of Apple Inc. (NASDAQ:AAPL) proposed launch low-end MacBook and Mac Mini in 2020 churns online. It now trades at $53.24 on a visionary strategy of a new Chief Executive Officer Robert Swan.
Ross Syemore, A Deutsche Bank analyst, reaffirmed the buy rating on the stock after having a discussion with Intel CEO and other top executives at a Mobile World Congress Conference this week. The chip maker is likely to gain from communications, networking and handsets markets. The company could post handsome earnings shortly.
Apple expects to introduce low-end MacBooks and Mac Mini next year and working on apps that could work on iPhone, iPad, and Macs. Marzipan project of Apple confirms this shift. It is a challenge for designers. They need to design apps for small screens and large screen laptops. However, the company is not going on a large scale.
Apple cites production delays of Intel and makes a move with its processors. The proposed shift shields Apple from processor shortages from Intel and could easily meet the demand for new MacBooks. Intel could lose a certain percentage of revenues with the proposed move of Apple to come up with custom ARM CPUs. It generates 5% of the revenues from Cupertino. However, Intel has posted hefty revenues of $19 billion despite the shortage of 14 nm and stiff competition from AMD.
Apple replaces Xeon and Core CPUs
Apple would soon release new Macs with ARM CPUs replacing the Xeon and Core Processors of Intel. The company also plans to launch future iPhones with its 5G modems. It is a loss of a market for the chip maker Intel. Apple is competent in developing SoCs. The company already used A-series Chips in iPad, iPhone, and HomePod Smart Speaker.
ARM enjoys the low thermal output
Apple could enjoy low thermal output by using ARM CPUs under real workloads when compared to Intel’s Core i9, i7, i5, and i3 processors. Microsoft already runs Windows on ARM. Therefore, Apple could rely on ARM CPUs for the rapid launch of its products.
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