π Is Apple Breaking Up Bad(ly) With Intel?
Itβs Intel Outside, as far as Apple is concerned going forward
HeyΒ Global Investor, here's what you need to know before the US markets open.
Market Snapshot π
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π Is Apple Breaking Up Bad(ly) With Intel?
Itβs Intel Outside, as far as Apple is concerned going forward. Appleβs βOne More Thingβ Event rolled out new Macs with its custom M1 chips as it transitions away from Intel.
Background:Β Breakups are hard, they say. Not so for Apple.
Back in June, Appleβs Tim Cook announced in the Worldwide Developers Conference (WWDC) that the Mac line of personal computers will transition to custom processors. And that started the two-year timeline to complete the transition away from its 15-year partnership with Intel.
Appleβs move is an indication of the growing power of the biggest tech companies as they reduce their dependence on major partners and take more control of building their products. This adds to Intelβs mounting troubles, which has faced manufacturing and delivery issues for its chips.
What Happened?Β Β Appleβs βOne More Thing,β showcased the new 13-inch MacBook Air with the M1 chip. Built with 5-nanometer technology, the M1 sped up the CPU 3.5X, graphics by 5X, and machine learning by 9X, courtesy the 16B transistors the chip hosts. Thatβs the most Apple has ever had in a chip. Apple will bring everything about the product under one roof β from conception, design, software, and the hardware, similar to the workflow of iPhones and iPads.Β
For Intel, thereβs not much impact in the short-term since Apple accounts only for 5% of its revenues, and thereβs a two-year runway before Apple fully dissociates from its long-time partner. But the long-term effects could be significant. The chipmakerβs high-profit margins have long been linked to its ability to deliver powerful chips. But Intel has fallen behind badly this year. Apple saw the struggle and decided to call time on the relationship.
Market Reaction:Β Apple stock closed at $119.49, up 3.04% and Intel closed at $46.35, up 2.00%Β
Company Snapshot π
AAPL $119.49 +3.52 (3.04%)
INTC $46.35 +0.91 (+2.00%)
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Winvesta WritesΒ β
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Later TodayΒ π
6.00 PM IST:Β Initial jobless claims (regular state program, SA)
6.00 PM IST:Β Continuing jobless claims (regular state program)
6.00 PM IST: Core CPI
Before Market Open: Weibo Corp Inc Earnings (WB)
After Market Close: Applied Materials Inc Earnings (AMAT)
After Market Close: Unity Software (U)
Fun Fact of The DayΒ π
Jet lag feels worse if you travel from west to east
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