Apple is planning to use its own chips in Mac computers beginning as early as 2020, replacing processors from Intel, according to people familiar with the plans, Bloomberg News’ Ian King and Mark Gurman report.
The initiative, code named Kalamata, is still in the early developmental stages, but comes as part of a larger strategy to make all of Apple’s devices -- including Macs, iPhones, and iPads -- work more similarly and seamlessly together, said the people, who asked not to be identified discussing private information. The project, which executives have approved, will likely result in a multi-step transition.
The shift would be a blow to Intel, whose partnership helped revive Apple’s Mac success and linked the chipmaker to one of the leading brands in electronics. Apple provides Intel with about 5 percent of its annual revenue, according to Bloomberg supply chain analysis..jpeg)
Intel shares dropped as much as 9.2 percent, the biggest intraday drop in more than two years, on the news.