Accounting for 5% of Intel’s annual revenue, chips by Intel that had been used on Apple’s myriad of products since 2005. This move, codenamed Kalamata, aims to develop a proprietary Apple processing unit to be used across its fleet of devices, which could include its iPads, Macs, and iPhones. Intel is one of the few external manufacturers engaged by Apple in the manufacture of its devices.
This came as a huge blow to the chipset manufacturer. Intel’s shares had dropped 9.2% within a day of this revelation. Both companies had remained vague about this news, with Intel responding that they do not “comment on speculation about our customers”.
A large part of this decision, apart from the benefits of an internally-managed supply chain, would be the compatibility and integration of features between its devices. The Cupertino-based tech giant had seen most of its success in the past decade a result of it a cohesive ecosystem of products and features, seamlessly integrated with one another.
Internally code-named Marzipan, Apple has been developing the Mac platform to run iOS applications and software, in a bid to bridge the gap between its devices more closely. In an increasingly worrying trend for computer chipset manufacturers Intel and AMD, mobile computing had made several leaps that verge on them being almost competitive with their larger brethren. The latest Macbooks feature mobile processing units integrated with larger-scale components for security purposes, and mobile chipset giant Qualcomm has partnered with laptop manufacturers to produce ever-thinner and lighter notebooks at lower costs.