All Signs Point To Apple Inc. (AAPL) Using Own Chips

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Apple plans to make its own chips for Mac computers, ending its reliance on processors made by Intel, Bloomberg reports. Apple has switched chips before, in the 90's they went to PowerPC before going to Intel in the mid-2000's.

IN the media update Intel said that they would not like to comment on the speculation with the customers and would not also like to speak anything further on it. The change reportedly won't take effect until 2020, when it will start manufacturing in-house Mac processors, but the impact of the development could already be felt.

The move would also allow Apple to release products on its own schedule rather than rely on Intel's roadmap for its processors. The iPhone 7's A10 is now used in the 2018 iPad and 2017 Apple TV, while the iPhone 6's A8 chip is used in the HomePod.

On the back of this news Intel share prices fell 9.2 percent, the largest intraday drop in two years according to Bloomberg.

Meanwhile, Michael McConnell, an analyst a Keybanc, told Fortune the move away from Apple should be "manageable" for Intel.

Apple provides Intel with nearly 5% of the revenue according to research firm by Bloomberg Analysis. Instead of putting efforts to make changes to the app again, Instagram chose to end support for the Apple watch.

Apple Inc (Apple) designs, manufactures and markets mobile communication and media devices, personal computers, and portable digital music players, and a variety of related software, services, peripherals, networking solutions, and third-party digital content and applications.

Nearly certainly the new processors would be based on the ARM architecture which is used as the template for virtually every mobile phone processor including those used in the iPhone and iPad.

Companies like Dell, HP, Lenovo and Asus all use Intel chips in their laptops and desktops. The growth came even as PC sales declined slightly to 259.5 million units, the smallest drop since 2011, according to data from research firm IDC. That probably sounds like good news to most Apple fans anyway. It's entirely possible for Apple to either abandon such plans or delay them. "We have better control over timing, over cost and over quality", Chief Financial Officer Luca Maestri said of Apple's chip efforts past year.

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